high level: Get community approval for reduction of initial DIGG supply from 6,250 to 4,000
Initial liquidity for DIGG will be added at 1 DIGG = 1 BTC. This means that the initial fully diluted marketcap will be initial supply * BTC price. After much discussion with the community I am proposing that the initially planned initial supply for DIGG be reduced from 6,250 to 4,000. The price of BTC is also much higher than when the plan was initially conceived.
KEEP IN MIND
- Only 15% of the total supply will be immediately available with another 40 released through farming over the next 8 weeks. So the “8 weeks from now marketcap” is only about half of “fully diluted marketcap”.
- The supply will change very quickly with the first rebase ~24 hours from launch.
Arguments for 6250
~$187 million fully diluted marketcap / ~28 mil initial circulating marketcap
- large $value for airdrops
- may be close to “mid-term successful marketcap” meaning less volatile rebases in either direction
Arguments for 4000
~120 million fully diluted marketcap / ~18 mil initial circulating marketcap
- Higher initial marketcap may drive successive negative rebases which can have a negative psychological effect on the community
- lower initial marketcap may lead to positive rebases which can have positive psychological effects on the community
The key points to me are if we think there will be successive negative rebases with a supply of 6,250 (which could drive FUD but also leads to large impermanent loss for LP stakers). It will likely be very volatile to start anyway, there a many variables in play so please weigh in below and the community can make the call.