🧵(1/18)
From time to time I see some FUD around @PlutusDAO_io FDV, token supply, emissions, and dilution for $PLS holders. I'll try to break it down in a simple manner to clear up some misunderstandings and misconceptions around it. #Plutus #PLS #Arbitrum
From time to time I see some FUD around @PlutusDAO_io FDV, token supply, emissions, and dilution for $PLS holders. I'll try to break it down in a simple manner to clear up some misunderstandings and misconceptions around it. #Plutus #PLS #Arbitrum
(2/18)
Firstly, we have to understand what is the purpose of PLS. As of this moment, it will control governance on Arbitrum over Dopex, Jones, Sperax, as well as, GMX as per recent announcements and alpha dropped by @ethersole on @MarketCapping podcast.
twitch.tv/videos/1576316…
Firstly, we have to understand what is the purpose of PLS. As of this moment, it will control governance on Arbitrum over Dopex, Jones, Sperax, as well as, GMX as per recent announcements and alpha dropped by @ethersole on @MarketCapping podcast.
twitch.tv/videos/1576316…
(3/18)
In this thread I'll assume you know the mechanisms behind @PlutusDAO_io and how the protocol acquires its governance.
If not, feel free to hop on the community Discord or hit the Medium.
discord.gg/plutusdao
medium.com/@plutusdao.io
In this thread I'll assume you know the mechanisms behind @PlutusDAO_io and how the protocol acquires its governance.
If not, feel free to hop on the community Discord or hit the Medium.
discord.gg/plutusdao
medium.com/@plutusdao.io
(4/18)
Supply & Utility
PLS total supply is 100M. The number may seem scary high to many considering that current circulating supply is just shy of 17M. But it's crucial to understand the thought behind it. As we described previously, it is a governance token.Why does it matter?
Supply & Utility
PLS total supply is 100M. The number may seem scary high to many considering that current circulating supply is just shy of 17M. But it's crucial to understand the thought behind it. As we described previously, it is a governance token.Why does it matter?
(5/18)
As a token that controls governance over protocols, ideally but not necessarily, @PlutusDAO_io should offer better value for money over native governance token on top of offering liquid position instead of 4 year veToken.
As a token that controls governance over protocols, ideally but not necessarily, @PlutusDAO_io should offer better value for money over native governance token on top of offering liquid position instead of 4 year veToken.
(6/18)
This incentivises users and protocols to accumulate PLS over native veToken to sway votes in their or others favor and earn those sweet, sweet bribes (Plutus is collaborating with @redactedcartel).
This incentivises users and protocols to accumulate PLS over native veToken to sway votes in their or others favor and earn those sweet, sweet bribes (Plutus is collaborating with @redactedcartel).
(7/18)
With 100M total supply, @PlutusDAO_io can achieve governance that is dispersed across many various users while maintaining reasonable vote costs. Why would you buy a governance token 1:1 or 2:1 over the cost of a native veAsset if only governance is what you're after?
With 100M total supply, @PlutusDAO_io can achieve governance that is dispersed across many various users while maintaining reasonable vote costs. Why would you buy a governance token 1:1 or 2:1 over the cost of a native veAsset if only governance is what you're after?
(8/18)
Emissions
Native token emissions evil, #realyield gud!
Clearly that's the trend for the next bull run, but it's not also entirely accurate.
Emissions
Native token emissions evil, #realyield gud!
Clearly that's the trend for the next bull run, but it's not also entirely accurate.
(9/18)
Emissions are used to reward and incentivise users to provide value-generating assets to the protocol. Main challenge for the protocol is to maintain the balance of these emissions to keep the ratio of value in vs value out healthy.
No value+big emissions=price goes whoosh
Emissions are used to reward and incentivise users to provide value-generating assets to the protocol. Main challenge for the protocol is to maintain the balance of these emissions to keep the ratio of value in vs value out healthy.
No value+big emissions=price goes whoosh
(10/18)
@PlutusDAO_io emission schedule is laid out for the next 24 months. Crucial to understand that the emission schedule is a framework and a guideline that may be subject to change due to market sentiment change, asset value proposition change etc.
@PlutusDAO_io emission schedule is laid out for the next 24 months. Crucial to understand that the emission schedule is a framework and a guideline that may be subject to change due to market sentiment change, asset value proposition change etc.
(11/18)
Plutus has already seen its first emissions cut to some pairs, not even 6 months in.
Proactive > Reactive approach.
medium.com/@plutusdao.io/…
Plutus has already seen its first emissions cut to some pairs, not even 6 months in.
Proactive > Reactive approach.
medium.com/@plutusdao.io/…
(12/18)
BUT I'M GETTING DILLUTED AND GETTING DUMPED ON?
BUT I'M GETTING DILLUTED AND GETTING DUMPED ON?
(13/18)
Dilution is real and there's no way around it.
Is it good? No. Is it bad? Depends.
It is a legitimate concern for majority of investments you could do in DeFi or TradFi. New tokens get emitted; new shares get issued. There is really no easy framework or solution to this.
Dilution is real and there's no way around it.
Is it good? No. Is it bad? Depends.
It is a legitimate concern for majority of investments you could do in DeFi or TradFi. New tokens get emitted; new shares get issued. There is really no easy framework or solution to this.
(14/18)
If $ value is what you're after, what matters the most is if the price appreciation keeps you in profit despite the token dilution.
Simply speaking - does the protocol bring more value in than it emits, and does it generate any value by itself?
If $ value is what you're after, what matters the most is if the price appreciation keeps you in profit despite the token dilution.
Simply speaking - does the protocol bring more value in than it emits, and does it generate any value by itself?
(15/18)
If supply % ownership is what you're after..well..you have to continue buying in with the rest of the users as token supply increases. Alternatively, can bring in assets that generate value for the protocol that receive emissions to offset dilution - DPX, JONES, GLP etc.
If supply % ownership is what you're after..well..you have to continue buying in with the rest of the users as token supply increases. Alternatively, can bring in assets that generate value for the protocol that receive emissions to offset dilution - DPX, JONES, GLP etc.
(16/18)
What about dumpers treating the token as a farming shitcoin?
It's free market bruh. Everyone has the right to do whatever they want to do with their assets. Protocols responsibility is to carefully monitor emissions to maintain healthy ratio of value in vs value out.
What about dumpers treating the token as a farming shitcoin?
It's free market bruh. Everyone has the right to do whatever they want to do with their assets. Protocols responsibility is to carefully monitor emissions to maintain healthy ratio of value in vs value out.
(17/18)
If a protocol adds value to the users, market, provides building blocks for other protocols to build on - it shouldn't be a major issue or an issue at all. In majority of cases when you're early, you are betting for ones success.
If a protocol adds value to the users, market, provides building blocks for other protocols to build on - it shouldn't be a major issue or an issue at all. In majority of cases when you're early, you are betting for ones success.
(18/18)
That's the risk one is taking when making these types of early investment bets for the big green candles.
NONE OF THIS IS AN FINANCIAL ADVICE!
That's the risk one is taking when making these types of early investment bets for the big green candles.
NONE OF THIS IS AN FINANCIAL ADVICE!
Chad CC:
@ethersole @systems_value @tztokchad @0xsaitama_ @Tetranode @chutoro_au @SmallCapScience @dLuxGMI @DeFiSurfer808 @Halko500k @0x_ultra @DegenSensei @SalomonCrypto @dopex_io
@ethersole @systems_value @tztokchad @0xsaitama_ @Tetranode @chutoro_au @SmallCapScience @dLuxGMI @DeFiSurfer808 @Halko500k @0x_ultra @DegenSensei @SalomonCrypto @dopex_io
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