What people don't see is that this is bullish @AerodromeFi and bearish @Uniswap...
People are predicting Aero's announcement on Wednesday is expanding across the EVM & if that's true, Uniswap got rattled and tried to rain on Aerodrome's day with this news (oops)
The reason why Aero is kicking Uniswap's ass on Base (~2:1 volume dominance) is because LPs only care about return per dollar of liquidity contributed. Aero is winning on that.
If Uniswap is turning on the fee switch, that means LPs will make even less or fees to trade on Uniswap will be jacked up higher
Rock and a hard place
Side note... this is why capitalism works
Uniswap has been fat & lazy treating tokenholders like shit for years
Serious competition was the only way to force them to finally do the right thing for holders
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Beyond all other discussions on ICM and @believeapp, one thing is glaringly clear to me...
Get rid of the fixed 2% trade tax asap
If you want the next Uber to launch on @believeapp, it will not happen with a 2% tax
My next tweet shows a model that would work better for all stakeholders... @pasternak
Solution: Bootsrapping Tax Period
Before TGE, allow creators to choose via Token 2022 standard:
1. An X% tax
2. That lasts for Y weeks (max time period should be no longer than a month or two)
3. Max $ cap based on how much money they need in runway to get to revenue generation from their product
4. Team must post a detailed 'use of proceeds' aka a plan with numbers & roadmap to rev generation
Why this works better...
Benefits
- Projects can bootstrapp operations without VC
- Increases transparency for what people are buying
- Early believers can still buy early and shouldn't care about a 2% tax (if they really believe long-term)
- Encorages investors over traders
- Believe App can still show good metrics
- Can scale at larger MCs
- Makes it less lucrative for fake/low quality projects to launch