SOL, SUI, ADA etc. vs SEI,DOT,ATOM.
I’d say these aren’t great examples, we are talking a layer-1 token vs governance tokens after-all. These are very different in term of supply, demand, and overall utility.
Look at our own native token Algorand: 0 lockup, lots of options for liquid-staking, being able to run your own node at cheap rates, staking pools, delegated staking, etc and we are sitting at 24 volume of 16M and at ATLs of $0.084. There’s not enough demand vs supply in the market.
And that’s Tiny’s main issue, far too much supply and little demand, along with low trading volumes compared to a few years ago thus comparatively little being burned vs VC unlocks, farming rewards and gov unlocks.
I do agree that having as much tiny is possible locked up is the goal, however I think a lot of this has caused a bastardization of our own tiny liquidity across the ecosystem.
5/ The 9M Airdrop TINY gets added into Governance Rewards to increase it’s APY and encourage further locking.
This is another big sticking point however: It won’t increase APY hardly any. We are talking about a relative pittance of Tiny for something like that and even the majority of it is going to go to the top 50 holders, the vast majority to the top 100. I’m one of those, we hardly need the boost.
A full 20% of that weekly addition would go to JUST the top two accounts.
All you’d be doing is handing out a lot of free tiny to a handful of accounts.
I think my biggest issues with adding any additional tiny to gov rewards atm is, well most of it is gonna go to just a handful of accounts.
20% to the top TWO accounts.
44.3% to the top 10 accounts.
56.86% to the top 20.
64.12% to the top 30.
69.41% to the top 40.
74.07 of tiny power is located in the top 50 accounts.
Out of 3,712 govs.
When tiny is insanely cheep. (And a stunning amount don’t do the one job we have of doing regularly, voting).
As currently #13 on the list – that added tiny boost to rewards is not going to move the needle much in my weekly payout/ APR, something that currently sits at 15,122.18 and a high 28.17%. A large reason I’ve routinely emptied LPs for tiny and locked them is my tinypower decreasing regularly and needing to “top it off” so to speak.
One of the largest issues in the idle tiny amount is it is not enough to really add much to the average Tiny Gov. And even if it was stored in say USDC where we could use the funds to buy tiny from the market directly and burn it, we’d only almost double our total tiny burned – and VCs would just negated that in the next few unlocks for them. As long as they dump and we don’t have means to absorb, we can’t do much till they are out.
And while it would take some time to do that, we could repeatedly farm those LPs and continue compounding them to build up long-term stability – and at the very least we KNOW that we are not gonna sell those tiny rewards as we earn them. Something that I have pushed for a while now, both here and here.
Except this would cause no additional costs from the team since we already have the funds just sitting around currently not being used.
And imo that’s better than what we can currently do to stem sell pressure – which is basically nothing by ourselves