Enlightenment of DeFi's "fair issuance": Tokens are not only investment products, but also a kind of equity
Editor's Note: This article comes fromFat Garage (ID: gh_9476b696b7c2), published with permission.
Fat Garage (ID: gh_9476b696b7c2)
, published with permission.
What's interesting about the market recently is that DeFi is designing another proof-of-work mechanism (liquidity mining) to achieve fair distribution. Different from airdrops, everyone needs to work hard to get corresponding incentives. Since there is no priority assignment, everyone can participate in the game from the same starting point. In addition, this reward (token) will also be endowed with continuous utility - participation in governance, from a simple token to a governance token with unlimited power.
POW,POW
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Let's first look at a few descriptions about fair distribution.
price discovery
Hasu said in "Why is YAM a Satoshi Nakamoto solution?" Fair distribution means that everyone has to work hard for it, but at the same time, this effort has a cost. Just like a Bitcoin miner, he can adjust his strategy, stop digging when the electricity price is high, and sell coins to earn income; start mining when the electricity price is low, the logic is very simple (simple). In short, you always have benefits to get, and at the same time make the whole network run.
There are many technical and economic reasons to prefer PoW, but the psychological factors are still not fully accounted for. The more time and resources people put into something, the more value they place on it. Perhaps this is the sunk cost fallacy of encryption.
price discovery"An earlier 2019 article by Arjun Balaji and Hasu defined a fair launch as: a product with a longer launch cycle for price discovery and price parity (without discounting)."A fair launch means creators don't receive any free tokens or special perks at launch. Crypto projects usually cut a
founder reward
(usually 5-25%), and then sell the rest to others. But projects like YFI, YFII, and YAM chose not to. This provides a huge signal to others that the founders are not here to make a quick buck. They are equal to everyone else. They just created a game and invite you to play.
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new highlights
There is no doubt that Bitcoin has always been a holy grail benchmark, and there is no need to compare market value in the matter of fair distribution. After all, time/practice is the only criterion for testing truth. The big pie has gone for so long, and as the most decentralized economy with the most dispersed chips, its status cannot be easily shaken. But here are a few examples of what is currently gaining momentum, and interesting innovations they build upon.
YAM's Treasury
In the yAM forum, I saw that trent e (core member) led everyone to discuss the key points: the role of the treasury (treasury) should be to earn more income, making it a positive-sum game rather than covering expenditures.
I think this is very important. He said that this "treasury" can earn enough income (yield) for these pledgers, just like a decentralized public offering fund. Reminds me of what Hasu said in "yam, a Satoshi Nakamoto scheme":
To avoid a rupture, YAM must find a reason for people to never sell, but to hold on to its utility, not just the hope of future price appreciation. We should be realistic here. Their design flaws will keep YAM and its many clones from being money forever. The remaining option is to evolve the protocol into something completely different. But it's not impossible, given the system's treasury system and the community's ability to shape it through governance.
In fact, this is not limited to YAM. All tokens must find a reason for people to hold (HOLD) to the maximum and continue his utility.
The role of governance currency
For the continuation utility, I have to mention the continuation of the token function. This is the first time since I came into contact with the concept of DAO, I feel that it can be used. The DAO tokens we came into contact with before talk about participating in governance, proposals, and voting. Without the blessing of actual benefit scenarios, to be honest, it is actually irrelevant. But this time when DEFI+DAO sparks, people will really participate in governance for their own benefit. Take the recent sushi multi-sig holder election as an example. If people want to support the only candidate in China - Liu Jie, the founder of MCDEX, they must use sushi tokens to participate in the second round of voting.
For another example, YFII's newly designed iToken is the equity token of YFII's core business Vault. Under this design, the ordinary Tokens deposited by investors in the YFII Vault will be converted into interest-bearing Token-itokens, and the value of iTokens will continue to increase through the automatic optimization of the income strategy of the smart pool.
Liquidity mining must not have fixed rules, because the external environment of the project and target incentive objects are changing every day, so our liquidity mining mechanism is carried out in one period, and the time of each period is not fixed. To govern, to vote.
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When describing YFII governance, Dovey said: “How many YFII tokens I have, I can only cast so many votes. Of course, there may be people with relatively greater influence in each community. There is a special position abroad. , that is a lobbyist. The job of a lobbyist is to influence other senators and representatives to make them believe in a political proposal that they think is good. In decentralized governance, everyone is a politician , as long as you are a token holder, you can vote."
write at the end
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