Thread by @0xSato

$OHM wants to become world reserve currency, by replacing $/BTC.

Does it have intrinsic value? Yes, but @ 20%.
Why 400% premium? The mission & APY.

Mission: Becoming world reserve currency.

Stake&earn: 1.17%/day. 7200% APY. Very attractive.

Thread👇

https://twitter.com/0xSato/status/1462617339690565632

Intrnsic value:
$810M/$4270M=20%.

$810M:Treasury
$2470M:Market Cap

But 20% is not fixed. It could be less than 0.1%. The bottom line is 1 $OHM >= $1.
OHM could be issued even without $DAI revenue in bear markets, decreasing intrinsic value of each $OHM.
👇

Mission: World reserve currency
Possible?
Yes. But I don't see why is it better than $BTC, $LTC, $DOGE.
Too many tokens want to be reserve currency.
Great mission, but difficult.
👇

The most magical part is the 7200% APY.
How does the protocol did this? Is it even possible?

Yes, the protocol inflates $OHM by 1.17% a day to achive this.

This makes you MUST stake. It's pointless to hold in your wallet without staking thanks to the huge inflation.
👇

Since 90% staked, selling pressure is low.

With 7200% APY, buying pressure is high.

So price goes up or stays relatively stable. (stable price is the mission of the protocol)

Even if price is stable, stakers will be VERY happy since they double their bag every 2 months.
👇

But high APY is either not sustainable nor the target.
The protocol targets 3%~6% APY when supply reaches 100b.

That is $90T MC at current price.

So if you don't stake, don't buy.
If you buy, you have to stake.

-----------
End of thread.