Whether or not we should lower the APY?
As you know, the APY from staking is partly determined by the number of bonds being sold. This is because a part of the revenue from selling bonds is used to mint new tokens and reward users with high APY.
In fact, APY is one of the most significant factors that affect the user's investment decision. The higher APY, the more attractive a cryptocurrency project is. Thus, increasing APY is an effective way to attract new users and retain the old ones.
However, an unreasonable high level of APY leads to risks for the whole system in the long term, especially in the volatile market.
TraDAO is drawing the attention of users thanks to its unique features (such as bond installment or TOD reputation) and, more importantly, an attractive rewarding program.
More specifically, the APY for staking TOD now is 6,540.86%, and the compound period is 8 hours. So that means users' balance will increase every 8 hours (rebase period).
However, as I mentioned above, a very high APY risks the whole system. Given the sustainable development of the protocol, I wonder whether or not we should lower the APY?
What do you think about it?
@justinmark I completely agree with you.
@justinmark I'm a newbie and I decided to invest partly because of the high APY. So the lower APY does not really make sense for me at the moment LOL. But in the long-term, maybe its needed.
@vincente Anyway, it might be necessary to lower the APY for the sustainability of the protocol. However, it also needed to attract new users who mostly care about the constant benefit from high APY instead of the long-term development.
@violeta, it's such a chicken-and-egg situation.
If the APY is actually descended, I think the team needs to try their best to convince the new one to believe in their long-term benefits LOL.
@vincente Yes! The team is doing pretty well now. However, to be honest, in a field like crypto, it's quite hard to earn people's trust only by promising something in the future. That's the reason why the team needs to do more than that.
Victoria Phinn last edited by
@violeta My pov, it's hard to convince new users that they should believe in their long-term benefits for sure.
Quan Dinh last edited by
What APY do you guys expect? Do you want us create a snapshot voting???