BIP 19: Reduce Initial DIGG Supply to 4,000

category: DIGG
high level: Get community approval for reduction of initial DIGG supply from 6,250 to 4,000
Status: Approved

details:
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.

Reduce initial supply from 6,200 to 4,000
  • YES
  • NO

0 voters

17 Likes

We’ve been discussing this and already voted on this issue. With all due respect I vote no, for many reasons already discussed over the past 3 weeks.

8 Likes

Can we see some models for this please?

4 Likes

Given how much BTC has risen in the last few weeks, and how much it can rise even in the next few days, I think a lower market cap is important to start. Remember, we can’t support a high market cap without new buyers of DIGG, and if early buyers get rekt on negative rebases, it will be a very short-lived experiment.

14 Likes

It (BTC) could also drop just as easily.

4 Likes

Please change the voting so voters can be seen.

I respectfully vote No considering everything.

5 Likes

It could, but the trend seems upward for now. I suspect we’ll see some meteoric rises next week when equity markets reopen and all the wall street buyers come back from holiday.

edit: Also, if BTC price drops, that helps with positive rebases.

1 Like

I voted Yes bc i think its better to start with lower supply, as i also told in the other topic, in my opinion its more probable at lower mc to start with positives rebases and gain more traction with positive sentiment.
But it has been discussed a lot the past weeks, and people already voted, i wouldnt mind to go as people voted before, if not this will keep going… if the discussion keeps another week, and in the strange case BTC jumps to past 40k+, we will have another poll asking the same?

1 Like

Voted yes, lets get this thing flying! Better to start with a smaller mc imo, its easier for the market to adjust upwards then downwards.

2 Likes

What if we simply voted on market cap at launch in pure USD terms? That way we don’t have to constantly adjust this downward as BTC price rises? Whatever we decide now could be moot if BTC hits $50K Monday morning. As crazy as that sounds, $50K seems more likely than $25K on Monday.

4 Likes

What would the impact of consistent BTC price increases do?

If btc continues its rise, then DIGG will face negative rebase pressure all the way up, right?

1 Like

Voted yes.

For an elastic token there are not too many good reasons to start with a higher market cap. Just start as low as possible and let the demand drive the supply.

6 Likes

I voted no for BIP 19.

But… what would be OK with me is if the initial supply was dropped to 4,000 - but the airdrop will remain at 14.5% of the original 6250… @jonto

I’m thinking the community will be much more in favor of this. @everyone

IF YOU ARE IN FAVOR CLICK
  • YES
  • NO

0 voters

3 Likes

I encourage everyone to not dump immediately, provide liquidity, re-stake digg airdrops in the first week, to support this project. :rocket:

18 Likes

Put the cart before the horse and THEN decide which path you want to go. Stick with initial proposal. Can’t be going all over the place right away.

1 Like

Right, IMHO that is a huge risk here. BTC could moon and early DIGG buyers could get rekt by constant negative rebases. It is much different than AMPL in that regard. 1 USD = 1 USD so you don’t have to worry about negative rebases unless money is leaving.

1 Like

Just release the damn thing. All this chatter is negative. Mid to long term we will be in the same position. So many BIPS over this and delays due to overthinking and getting caught up with nonsense. Next week are you going to post another BIP regarding cube root instead of squared? Like RELEASE IT. We’re ready!

4 Likes

I vote yes. Badger currently has a massive TVL and a compelling long-term value proposition. We can afford to be conservative and set up the DAO for success outside of the immediate air drop period.

Starting with a smaller market and building slowly over time have built rock solid liquidity so far. In the current market space events move extremely fast- however that does not mean that the DAO should immediately play all of its cards. The present BTC bull-run will not end tomorrow or the day after.

Patience is a badger virtue.

5 Likes

With all due respect, it seems like you’re just trying to maximize your airdrop. I suggest that if your primary goal is to sell the airdrop immediately, getting a larger market cap may not lead to more profits. If everyone immediately runs to the exits, this thing will fail, and you’ll probably not get much for your DIGG tokens.

3 Likes

My goal is not to sell DIGG immediately - I’ve been here from the start and have more at stake here than most. We’ve voted for 6250 initial supply already.
This is a good compromise.

1 Like