What is the fair market value (FMV) of 70 million $pKLIMA held by @OlympusDAO treasury?
A thread exploring:
- What is $pKLIMA?
- How $pKLIMA to $KLIMA conversion happens?
- Assumptions and inputs needed to assess FMV of $pKLIMA
- What $pKLIMA means for $OHM market cap
A thread exploring:
- What is $pKLIMA?
- How $pKLIMA to $KLIMA conversion happens?
- Assumptions and inputs needed to assess FMV of $pKLIMA
- What $pKLIMA means for $OHM market cap
1. What is $pKLIMA?
$pKLIMA is like $pOHM, it is a call option with a strike price of one Base Carbon Ton (BCT).
Just like 1 $OHM has to be backed by at least $1, 1 $KLIMA has to be backed by at least 1 BCT.
Converting 1 $pKLIMA to $KLIMA requires giving 1 BCT to KlimaDAO.
$pKLIMA is like $pOHM, it is a call option with a strike price of one Base Carbon Ton (BCT).
Just like 1 $OHM has to be backed by at least $1, 1 $KLIMA has to be backed by at least 1 BCT.
Converting 1 $pKLIMA to $KLIMA requires giving 1 BCT to KlimaDAO.
https://twitter.com/ishaheen10/status/1412636915921154049
2a. How $pKLIMA to $KLIMA conversion takes place?
Just like $pOHM! To convert a $pOHM to $OHM, the holder pays $1 to the Olympus treasury and gets $OHM in return. This conversion is capped at 11.8% of supply.
For $pKLIMA replace $1 with 1 BCT and replace 11.8% with 3.5%.
Just like $pOHM! To convert a $pOHM to $OHM, the holder pays $1 to the Olympus treasury and gets $OHM in return. This conversion is capped at 11.8% of supply.
For $pKLIMA replace $1 with 1 BCT and replace 11.8% with 3.5%.
2b. How will Olympus get 1 BCT?
This one is tricky. It’s not immediately clear to me what Ohmies will have to do to get 1 BCT. Probably a community vote to buy them off market?
I love that we are now incentivized to research and find out! This is bullish for mother earth!!
This one is tricky. It’s not immediately clear to me what Ohmies will have to do to get 1 BCT. Probably a community vote to buy them off market?
I love that we are now incentivized to research and find out! This is bullish for mother earth!!
3. Assumptions and inputs needed to assess FMV
- Supply growth trajectory of $KLIMA
- Price of one BCT (strike price in USD)
- Expected $KLIMA premium over one BCT (market price in USD)
- $pKLIMA to $KLIMA conversion schedule that Olympus will follow
- Discount rate
- Supply growth trajectory of $KLIMA
- Price of one BCT (strike price in USD)
- Expected $KLIMA premium over one BCT (market price in USD)
- $pKLIMA to $KLIMA conversion schedule that Olympus will follow
- Discount rate
4. What $pKLIMA means for $OHM market cap?
Hard to compute for now. Keep an eye out on a blog @ArchimedesCryp1 says is coming out soon.
Until then feel free to create a spreadsheet that shows a cash flow schedule for Olympus if it “converts as you go”.
I may make one soonTM.
Hard to compute for now. Keep an eye out on a blog @ArchimedesCryp1 says is coming out soon.
Until then feel free to create a spreadsheet that shows a cash flow schedule for Olympus if it “converts as you go”.
I may make one soonTM.
The other way is to ask, when does all $pKLIMA become convertible?
Answer is at 9.4 bn circulating supply of $KLIMA. (330/3.5%)
At this time what’s the carbon price / ton?
What’s the $KLIMA premium over 1 BCT?
Hard to evaluate but will be a fun spreadsheet exercise.
Answer is at 9.4 bn circulating supply of $KLIMA. (330/3.5%)
At this time what’s the carbon price / ton?
What’s the $KLIMA premium over 1 BCT?
Hard to evaluate but will be a fun spreadsheet exercise.
A much simpler mental model is this:
Olympus allocation of $pKLIMA is 0.74% of $KLIMA market cap (70/330*3.5%).
So where’s $KLIMA market cap headed? I think it has a shot at 1 trillion mcap just like $OHM.
Some seasoned traders like @0xSisyphus think KLIMA may surpass OHM.
Olympus allocation of $pKLIMA is 0.74% of $KLIMA market cap (70/330*3.5%).
So where’s $KLIMA market cap headed? I think it has a shot at 1 trillion mcap just like $OHM.
Some seasoned traders like @0xSisyphus think KLIMA may surpass OHM.
So what is 0.74% of KLIMA when KLIMA supply is 9.4 bn? In the hundreds of billions if not trillions on a 3-5 year timeframe.
Depending on a ton of assumptions and discount rate I believe a $1 billion FMV on 70 million $pOHM will be conservative.
Depending on a ton of assumptions and discount rate I believe a $1 billion FMV on 70 million $pOHM will be conservative.
Disclaimers: I own a shit ton of $OHM and a good amount of $KLIMA so I’m obviously biased. Please DYOR.
If you follow me you know how insanely bullish I am on $OHM. I believe $pKLIMA is not at at all priced in. Neither is Olympus Pro or the profit share with Wonderland.
If you follow me you know how insanely bullish I am on $OHM. I believe $pKLIMA is not at at all priced in. Neither is Olympus Pro or the profit share with Wonderland.
If you enjoyed this thread I highly recommend clearing out your schedule this weekend and tuning into #FOHMO3 for as long as possible. Its an online event you can attend by joining Olympus discord.
Ohmies are the smartest, wisest and most capable humans I’ve ever met. Join us!
Ohmies are the smartest, wisest and most capable humans I’ve ever met. Join us!
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