Thread by @ishaheen10

@OlympusDAO is a master class in quality incentive design.

Today I got a chance to dig into the founding team’s incentive structure called pOHM (thank you @WartuII).

So what is pOHM and why does it matter? A brief thread.

link.medium.com/nMqGjchKGhb

1. pOHM was sold in a private sale under these terms:

- pOHM can be converted to OHM by paying $1 (it’s like an option with $1 strike price).

- At no point can pOHM converted to OHMs be greater than 11.8% of supply.

- 450 mm pOHM were issued to team, advisors and investors.

2. This design incentivizes the team to stick with the project as supply grows and maximize the price per OHM.

These pOHMs will not fully vest until 2-5 billion of OHM supply is achieved. My gut says that will take 5-8 years.

Thus, rug pull highly unlikely.

2. This is also a capital efficient design.

If the team sold $OHM in a private sale they would need to take $1 per OHM sold in addition to the actual raise to make sure the tokens are backed.

Instead they designed an option tied to revenue & market cap targets. Genius.

3. This design makes rug pull highly unlikely because the future rewards are gigantic compared to short term gains.

2 bn Ohm supply implies a $780 bn market cap at current price per Ohm.

7.8% of that is $60 bn <—- this is what their team could make if they deliver.

4. More importantly, a team that puts so much thought into incentive design and long term alignment of stakeholders isn’t playing a short term game.

Charlie Munger said something profound: “show me the incentive and I will show you the outcome”

Future of Greece is promising.