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Jacek.degen.eth 🎩
@jacek
1️⃣ The Lockup Vault – A Bad Deal for DEGEN? The vault was designed to require users to hold DEGEN in order to receive daily tipping allowances. The idea was that this would reduce sell pressure and incentivize long-term commitment. But the numbers tell a different story: • Right now, a 1.9M DEGEN deposit gives you a 10K DEGEN daily tip allowance • If fully farmed over a year, this results in an APR of 184% 😳 • That’s a massive ROI for a short lockup, creating huge inflation in the ecosystem This raises a key question: Are we getting enough back for giving out these rewards? Right now, it looks like the system is disproportionately benefiting farmers rather than long-term ecosystem participants.
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Jacek.degen.eth 🎩
@jacek
2️⃣ Is Tipping Still Effective? Tipping was one of the best marketing strategies early on. It got DEGEN into the hands of new users, helped spread the brand, and encouraged people to recruit others. But the momentum seems to be slowing: • In Season 11, only 565 new wallets (that never received an airdrop before) got DEGEN. • Yet, we spent $1M worth of DEGEN in that round. • That means it cost $1.7K per new wallet to onboard someone via tipping. That’s way too high for an acquisition cost, especially when there’s no guarantee that new wallets will stick around and engage long-term. If we’re mostly redistributing DEGEN to the same users, does tipping still make sense as a growth strategy? Or should we rethink how we use the treasury?
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Jacek.degen.eth 🎩
@jacek
3️⃣ What’s the Best Way Forward? It’s clear that: ✔️ The vault is allowing high-yield farming, causing huge inflation ✔️ New user growth is slowing, while the cost of acquiring wallets via tipping is too high This leaves us with some important questions: • Are we really getting enough value for the DEGEN we’re distributing? • Would a traditional marketing strategy (or another distribution method) be more effective? • Should we rethink tipping & lockup incentives to make them more sustainable? We need to ensure DEGEN’s distribution is efficient, sustainable, and actually driving growth. Would love to hear thoughts from the community—what do you think? 👇
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meta-david 💥| Building Scoop3
@metadavid
My knee jerk reaction is: ✔️ Eliminate the lock-up concept ✔️ Use Open Rank to determine allowance ✔️ Keep tip-for-tip rules in place As you pointed out, when it's a lock-up, then essentially you open the floodgates for people to buy in and get a killer APR. The lockup also makes it harder politically to go after bad actors because they can always (somewhat reasonably) rebut and say they bought their position in the ecosystem. Going back into the Open Rank system eliminates the optical hurdles of eliminating bad actors because receiving the allowance is truly a privilege (not an entitlement) and also presumably the ones with higher open rank scores are inclined to act in good faith since their skin in the game is the social integrity they built here and just for just about everyone who has a high score, that isn't worth compromising for any amount of $Degen. :) Albeit, that's not a perfect solution and it certainly has its flaws, but no solution will be perfect. It's about optimizing. :)
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artlu 🎩
@artlu
imo trust the market. the apr is so high because not enough are compelled to lock, not the other way around
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meta-david 💥| Building Scoop3
@metadavid
"the apr is so high because not enough are compelled to lock," -- can you unpack that?
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dusan.framedl.eth
@ds8
max allo is 10k, you need (roughly) 2M to reach that, APR is 365 x 10k / 2M ~= 182% if more people locked, and pushed the necessary minimum for max allo 2x to 4M, the APR would go down to a half of that (91%)
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artlu 🎩
@artlu
lock more, get more of pool vault size fluctuates, pool size fixed people unlocked, apr looks shockingly high market solves, maybe too slowly tho /sixwordstory
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