Garrett
@garrett
Launching a token and only profiting off of LP fees might be the fairest way to launch a token If you can attract volume/attention then you will be rewarded with LP fees It’s the best incentive alignment between the token holder base and the creator based
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six
@six
disagree. if i launch a coin that goes to 1m and then back to zero and make money off the LP fees, that's the opposite of incentive alignment, i profited from volatility while the people holding my coin lost money
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Garrett
@garrett
what’s the better alternative? What would you change?
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six
@six
well i don't think there's anything "wrong" with the concept of earning from LP fees, the clanker business model is great for clanker and for coin creators, not sure if i would change anything -- i just don't believe it's "incentive alignment". the creators incentive is volume while the holders incentive is price. generally higher price leads to more volume which does lead to good outcomes for everyone, but it does not always work in the opposite direction, i.e. volume does not always mean higher price.
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