Evan
@evangreenberg
My thoughts on $degen (🧵): Recently, there was uproar over last minute bans and rules changes. My feeling had been that ever since @jacek instituted staking, he incentivized farming. Previous to staking, it was openrank that led to the greatest allowance, so that meant making engaging content.
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Evan
@evangreenberg
The issue that eventually led to staking was that allowances were too high and the coin’s tokenomics seemed to be getting out of whack. Staking came in to reduce the circulating supply, but now that allowances were based more on how much you locked up, the game theory optimal solution was to acquire as much $degen as possible.
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Evan
@evangreenberg
In trying to solve one problem, I think @jacek created an even larger one. Now the largest stakers had the largest allowance and they could use that allowance to gain even more $degen. Once some started dumping the token, it was clear that the current system wasn’t great either. Even allowing 15 t4t per season was plenty to trade large sums of $degen back and forth.
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Evan
@evangreenberg
However, not all farming was malicious. Originally, /paidgroup was its own cozy little corner where warpcasters came together to cosplay working at a company where the business goal was to pay each other $degen in fun and playful ways. An earlier crackdown basically caused influencer @karbonbased to leave Warpcast entirely, even after he put a lot of thought and effort into creating related NFTs and evangelizing FC. Now /paidgroup really mostly is what it was accused of and not so cozy anymore.
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