Dom98000
Market is quite clear about what it thinks of our current lever configuration. Some things need to get recalibrated. APY as set by OIP18 was set as per the best estimate of emissions based on reasonable assumptions for demand for OHM in the future . Demand is clearly not where we thought it would be. our hypothesis is therefore wrong therefore we need to readjust. when everything is in bull pump euphoria mode all is good for everyone, but flaws show and crack under pressure, we cracked, now we need to mend the pieces back together stronger.
Doesnt mean we cannot or should not ever go back to 1000+ apy, in a high demand for OHM environment why not. but emission should be dictated by demand for OHM, how do we quantify demand for ohm? simple as premium or discount over backing. trade above = high demand, trade below = low demand. purely from a core product standpoint, yes of course there are the subjective value add like the dao, econohmy etc premium that should be factored in but it all starts first hand with ohm then market will factor in everything on top of the core product.
We need to dynamically adjust and control the expansion of our supply based on current market demand and market conditions. We cannot be emitting now at the same rate that we were when we were trading at 500-1000% over backing. backing is our rock, focus needs to be on growing backing per ohm not further expanding supply . Much better for protocol to be selling 1 ohm for $500 than 1 ohm at $5.
There arent 1000 historical solution how to deal with hyperinflation and the collapse of monetary system :
peg your currency to something which we wont do
burn supply (not buy back like literally willingly burn set it on fire)
or get the emissions policies and bonding under control hope its not too late to regain market trust, i dont think you guys realize how long it will take to regain the confidence of the market, thanks god 1 month in crypto is like 1 year IRL..
Yes we can turn this around but the longer we let this go the longer the road to recovery will be.
I propose :
- when OHM trade below backing 0% APY
-when ohm trade 0-5% over backing APY only to cover dilution from bonds
- 5-10% over backing APY to cover bond dilution + 10:1 APY: Premium over backing = trade at 7% over backing APY would be 70%+emissions to cover bonds
- 10-25% over backing ( i think this is the sweet spot for bonds?) APY to cover bond dilution + 20:1 APY: premium so at 20% over backing APY would be 200%+
-25-50% '' '' '' '' 30:1
-50-150% '' '" " " '' 40:1 etc
Logic here is ohm is trading say at 100% premium over backing - that is from a core product standpoint "overvalued due to high demand for OHM" (good problem to have def better than trade 50% below backing) we want to incentivize bonding at those high premiums in order to increase backing and bring OHM price back closer to backing.
Incentivize market to keep Ohm price above backing thru APY > bonds issued above backing will raise backing per ohm> emissions incentive will keep ohm price above backing but not get out of control.
OHM rises in price and takes backing and liquid backing with it. wouldn't it be nice that if we managed things properly our backing would now be at say $500 and liq backing at say 50% below $250 where inverse bonds would of been waiting.
We were too conservative with bonds when we should of been aggressive and are too aggressive with emissions when we especially now so close to/below backing shouldn't be emitting a single OHM