Summary (colloquially)
- Dilution is real
- Dilution not a concern because of TMV growth and Ohmie's TMVC
- Team has pOHM which can potentially insulate them from being diluted
- Team is regularly minting OHM to actively dilute themselves on a regular basis as a result
- We just want some clarity to make this official/public
Conclusion
Data showing Team Vesting and consequent Minting of OHM by pOHM holders (hereinafter the "Team") indicates a deliberate desire to reduce the dilutive effect on sOHM holders (hereinafter, "Ohmie" or "Ohmies") at the Team's own expense by sacrificing compounding to mint OHM now.
Request for Clarity
As this noble action undertaken by the Team already addresses this dilution issue in an ideal manner, more clarity is hereby requested to formalize any agreements that may be in place, if any, and to update documentation as necessary for the benefit of all stakeholders.
Background
The Market Cap (hereinafter, "MC") narrative is strong. This brings Ohmies together in times of market volatility so they can build conviction in their staking with the belief that price does not matter as supply expansion increases the MC.
A natural assumption, therefore, is that one's personal supply of OHM is expanding in proportion to the growth in Market Cap (hereinafter, one's "Percentage Share" or "PS") and that this PS is constant.
Ohmies' PS is not Constant
On October 28, Zeus posted the following tweet:
https://twitter.com/ohmzeus/status/1453852207414226965?s=20
This tweet revealed the issue of dilution. The PS of every Ohmie is slowly being diluted, through the function of bonding and minting of OHM. Although some Ohmies can stave off the dilution through bonding, it is not a practical method for all Ohmies.
Observable Dilution
This dilutive effect to Ohmies can be observed below. An Ohmie from June 15, 2021, would have seen her PS decrease to ~60% today over a 5 month period.
https://dune.xyz/pottedmeat/Dilution
Dilution isn't Everything, Focus on Treasury Market Value Capture
Market Cap is still the most important measurement. The exponential growth in market cap dwarfs any measured dilution. More specifically, one can focus on the Treasury Market Value. In the metrics below, an Ohmie would be capturing 675% of the 940% in growth. For Ohmies who wish to extrapolate, keeping an eye on an Ohmie's capture of the TMV is the best alternative to the previous assumption of having a constant PS.
pOHM
One of the many strengths of the Olympus Protocol is its ecosystem and consequent transparency. "pOHM" is not a closely guarded secret, but easily learned and accessible by simply typing "?pOHM" in the Discord.
https://olympusdao.medium.com/what-is-poh-16b2c38a6cd6
pOHM appears to essentially function as a call option on the MC, and on paper, the Team will not have to undergo any of the dilutive effects as Ohmies.
The Team is Sacrificing for the Benefit of Ohmies
Notwithstanding the disparity between pOHM and sOHM relative to dilution, the data shows a reasonable minting schedule by the Team, especially once they potentially became aware of the issue of dilution. The Team has been actively minting Ohm, sacrificing potential compounding to prevent the dilution of Ohmies.
https://dune.xyz/queries/117084/242875
Requested Clarity RE pOHM
The above referenced minting schedule by the Team and especially the consistency in the clustered events from September 10, 2021 onward (hereinafter, the "Mitigation"), suggests an awareness of the Dilution issue and a desire to mitigate its effects on sOHM holders relative to pOHM holders.
Notice is hereby given for a request to formalize any terms or agreements surrounding this Mitigation beyond the Team's laudable good faith efforts.
pOHM - What is its Role Today?
Onchain Data suggests that pOHM has been deprecated in favor of a 1:1 DAI to OHM conversion through the contract below:
https://etherscan.io/address/0xeaaa9d97be33a764031eddeba1cb6cb385350ca3
Therefore, what is the role of pOHM today and what is its relation to the mechanism and contract used above?
