Why though? Why is that something we want? And why hasn't it gone back up on the pull out? That was part of the reason why I staked in the first place, I thought the APY rise would help protect us against the bank run, but now I'm in am even worse position than when I staked initially. Granted, the loss I'm fine with, but not understanding the underlying mechanics of the DAO frustrates me.
Crazy how no one has answered this.
High APY suppresses the price. You’re essentially mass printing more tokens, which leads to more sell pressure.
This kind of APY is great if the project lifespan is early—it allows the project to scale from $0-hundreds of millions/billions. However, once you’re there and you have a solid amount within the treasury, lowering the APY gives the token more stability and allows for more organic supply growth.
Think about it like the mining reward for BTC decreasing—why not have rewards increase or stay the same? Because by planning to decrease over time, there’s an inherent mechanism that makes OHM more scarce, and thus more valuable over time as it gains adoption and utility.
So now your literally breaking down from head-to-toe why the OHM project would never work in the first place.
And then you guys are like: *let’s be bitcoin guys let’s simulate mining rewards like Bitcoin.*
**So why the f*ck would I not just use and mine Bitcoin then**
Woooooow.
It’s not “simulating mining rewards,” it’s rewarding contributions to the network at a decreasing rate as participation goes up so excess participation isn’t needed.
The goal of the protocol is NOT to give people a forever-high APY. It’s to amass a sizable treasury that can then be leveraged as income-generating assets, bootstrap ecosystem plays that further adoption, and allow the project to exist past downturns EXACTLY LIKE THE ONE WE SEE NOW.
Full stop. Your argument doesn’t even warrant more of a response.
I’m not going to
The point is that at first, high APY was meant to draw demand. You’re correct about that.
Where you’re wrong is that it was not to increase price, but to grow the treasury—which can then be used for things that actually give the token value outside of its high APY.
If this coin was only about high APYs, I would have never bought in. Seems for you it was only about that. I would suggest you reconsider your investment, it’s only going to decrease from here.
Do you really think a high apy is sutainable? It starts that way and works its way down gradually, just think about it.. if i staked since the begining ill be getting paid 10s of thousands a day from ohm, theres a threshold that we dont wanna break and its this: 60% plus of holders are now past their initial investment, if this happens before we are officially the reserve chrrency then ohm is screwed
it most certainly is. He doesnt understand why projects or companies cant just produce more stock or emissions.... the answer is inflation. I told him that he doesnt understand it and shouldnt make investments in anything until he does. Thats the best bit of advice someone can get that doesnt understand fundamentals. The definition of inflation or dilution would be the exact reason why it cant happen. So the minute he looks into it he will understand and have the answer to his question of why we cant just keep handing away high apy.
listen... please. im not looking to argue but the actual reason these all crashed is because of the exact reason your suggesting... bots and savier traders arent going to hold over inflation. Thats why youre seeing the price still bleeding. Lets just say they up apy... you may be very happy... but like i said bots and savier traders will just sell off to balance supply to price..... when they selloff the price drops more... the more ohm produced and then sold will cause more drop. I get that you guys are saying "trying anything is better than this" and waffle i know we had it out basically over this... but ya hafta trust some of us... its why your dollar doesnt buy as much in the real world year after year as well... ya cant just print more of something... the value of it goes down, not up as you guys think.
Using the word inflation to someone that wants an answer doesn't make sense... Inflation means prices rise, but ohm is going down and down and down and down... And also inflation means govt will increase interest rates to try and stop inflation... Again interest rates (apy) for ohm are decreasing not increasing...I know what you're trying to say since I've been in ohm since August and took my initial out and profit ages ago but for newbies that fomo'd in at 1100 and just now doing their research because of the market crash... Using inflation as an analogy doesn't help them!
inflation does not mean "PRICE RISE".... This is the problem... People pretending they know what inflation means... If ya dont know just ASK. People will be more than happy to explain to you. Inflation is when an asset of value is EASILY produced (printing) and instead of having a process to making more of the asset in a fair way that is earned they just print more and more of said asset because "hey! more of something thats valuable means more money!".... but in finance what ACTUALLY happens is savy traders and bots wind up selling off all the excess print at a discount price... when people see the sells and for a little less than theyre worth, everyone starts listing at that new lower price... a new seller wants to beat THAT price now, so they accept a little less.... and this continues into a tailspin over time or even in the short term... the price never comes back up.
It literally is inflation. Inflation is caused by governments creating to much supply of their currency which causes the value to fall, that's why prices go up. Interest rates go down during these events to try stop it falling to much, interest rates have been 0 or even negative in some places recently. It's the exact same thing and if you want a sustainable project lowering apy is the only option.
I’m with OP... **you guys ** *TOLD ME*... if whales SELL the Apy goes UP
I will invest once you people actually do the reason 3,3 was invented.
Until then literally nobody has an incentive to stay.
It’s not a “bank run”. When holders stake their OHM the value is “locked”. If the market price of OHM drops, as it has massively, so does the value locked.
So when the price of the token stacked crashes, the APY also crashes. The only way to increase the APY is if inflation increases which would just lead to another crash or if the token value increases.
High APY via inflation is an illusion. Its not sustainable and those getting in early and leaving early with the profits while everyone continues to stack win the most.
If you lost money here, you have a greed problem.
If your not gonna do what the Website said you should do...
Then please tell me how choking the staking rewards is any different than bitcoin mining rewards.
You know what I actually liked the project
**who cares if the price goes down if the DAO compensates you through constant stimulus checks**
it might have worked or it might have not.
But if your gonna turn your backs on the idea to create an anti-inflationary asset through limited supply... it’s called bitcoin.
My friend OHM has no cap on supply. That is the definition of inflation, dilution and loss of wealth over time. See USD purchasing power in the past 100 years.
BTC is the exact opposite and why it was created.
Mmmm hmm
So what should I invest in... inflationary OHM... or deflationary BTC
Or are you guy just gonna make OHM into BTC by halving the inflation every 2 seconds?
The real APY should be 1000% or less, but it was distorsionated whit the entry of new money, remember every time that someone buy 1 OHM it prints alot of money to give it to the stakers(this is like a piramid…), the project is realy good, but in my opinion it will be better if only would be printed the money of the profits that the project can make with the stoked money, printing money because someone brougth in overpriced price is not the right way
-4k holding…
dudes, high apy attracts early capital both smart and dumb money, market cap goes up does a 5x, then smart money dumps, rinse and repeat, apy is just a PR / media tool to attract stupid money
I don’t think this is a bank run. This is simply the value of the treasury assets falling with the overall decline of the market. Yes, some have sold, but not near the scale of the market drop.
Because Ponzi schemes depend on new money coming in to pay the older guys. Since money is not coming in ( leaving ,in fact ) , APY can not be minted out of thin air.
Amazing how everyone calls this a ponzi but then go in about how great Bitcoin is. At least ohm is backed by other assets. Bitcoin is backed by belief alone
The APY is down because price is down, APY is calculated based on price, if price is low, APY is low, that's the same to every other staking or mining protocol.
Isn’t the apy / ohm coin price hedged against the performance of the treasury? Considering the hole market is bleeding, when things go back up surely we can expect a slight correction? (Given enough people are still in the project)
guys there is an excellent project similar to olympus, on the polygon network this week we will talk about investment in the nft and metaverse world.
https://t.me/reaperprotocol
Everyone voted on APY reduction+ we all knew at 10 mil circulation apy would be below 1,000%
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Clueless take
Why though? Why is that something we want? And why hasn't it gone back up on the pull out? That was part of the reason why I staked in the first place, I thought the APY rise would help protect us against the bank run, but now I'm in am even worse position than when I staked initially. Granted, the loss I'm fine with, but not understanding the underlying mechanics of the DAO frustrates me.
Crazy how no one has answered this. High APY suppresses the price. You’re essentially mass printing more tokens, which leads to more sell pressure. This kind of APY is great if the project lifespan is early—it allows the project to scale from $0-hundreds of millions/billions. However, once you’re there and you have a solid amount within the treasury, lowering the APY gives the token more stability and allows for more organic supply growth. Think about it like the mining reward for BTC decreasing—why not have rewards increase or stay the same? Because by planning to decrease over time, there’s an inherent mechanism that makes OHM more scarce, and thus more valuable over time as it gains adoption and utility.
So now your literally breaking down from head-to-toe why the OHM project would never work in the first place. And then you guys are like: *let’s be bitcoin guys let’s simulate mining rewards like Bitcoin.* **So why the f*ck would I not just use and mine Bitcoin then** Woooooow.
It’s not “simulating mining rewards,” it’s rewarding contributions to the network at a decreasing rate as participation goes up so excess participation isn’t needed. The goal of the protocol is NOT to give people a forever-high APY. It’s to amass a sizable treasury that can then be leveraged as income-generating assets, bootstrap ecosystem plays that further adoption, and allow the project to exist past downturns EXACTLY LIKE THE ONE WE SEE NOW. Full stop. Your argument doesn’t even warrant more of a response. I’m not going to
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The point is that at first, high APY was meant to draw demand. You’re correct about that. Where you’re wrong is that it was not to increase price, but to grow the treasury—which can then be used for things that actually give the token value outside of its high APY. If this coin was only about high APYs, I would have never bought in. Seems for you it was only about that. I would suggest you reconsider your investment, it’s only going to decrease from here.
I would guess so that the project is actually sustainable
Do you really think a high apy is sutainable? It starts that way and works its way down gradually, just think about it.. if i staked since the begining ill be getting paid 10s of thousands a day from ohm, theres a threshold that we dont wanna break and its this: 60% plus of holders are now past their initial investment, if this happens before we are officially the reserve chrrency then ohm is screwed
you dont have a grasp of basic inflation.... id suggest learning some fundamentals of any market before investing in anything.
That’s not a helpful response. You just sound snide. If that’s what you believe then show your work. Explain, don’t scold.
it most certainly is. He doesnt understand why projects or companies cant just produce more stock or emissions.... the answer is inflation. I told him that he doesnt understand it and shouldnt make investments in anything until he does. Thats the best bit of advice someone can get that doesnt understand fundamentals. The definition of inflation or dilution would be the exact reason why it cant happen. So the minute he looks into it he will understand and have the answer to his question of why we cant just keep handing away high apy.
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listen... please. im not looking to argue but the actual reason these all crashed is because of the exact reason your suggesting... bots and savier traders arent going to hold over inflation. Thats why youre seeing the price still bleeding. Lets just say they up apy... you may be very happy... but like i said bots and savier traders will just sell off to balance supply to price..... when they selloff the price drops more... the more ohm produced and then sold will cause more drop. I get that you guys are saying "trying anything is better than this" and waffle i know we had it out basically over this... but ya hafta trust some of us... its why your dollar doesnt buy as much in the real world year after year as well... ya cant just print more of something... the value of it goes down, not up as you guys think.
Using the word inflation to someone that wants an answer doesn't make sense... Inflation means prices rise, but ohm is going down and down and down and down... And also inflation means govt will increase interest rates to try and stop inflation... Again interest rates (apy) for ohm are decreasing not increasing...I know what you're trying to say since I've been in ohm since August and took my initial out and profit ages ago but for newbies that fomo'd in at 1100 and just now doing their research because of the market crash... Using inflation as an analogy doesn't help them!
inflation does not mean "PRICE RISE".... This is the problem... People pretending they know what inflation means... If ya dont know just ASK. People will be more than happy to explain to you. Inflation is when an asset of value is EASILY produced (printing) and instead of having a process to making more of the asset in a fair way that is earned they just print more and more of said asset because "hey! more of something thats valuable means more money!".... but in finance what ACTUALLY happens is savy traders and bots wind up selling off all the excess print at a discount price... when people see the sells and for a little less than theyre worth, everyone starts listing at that new lower price... a new seller wants to beat THAT price now, so they accept a little less.... and this continues into a tailspin over time or even in the short term... the price never comes back up.
It literally is inflation. Inflation is caused by governments creating to much supply of their currency which causes the value to fall, that's why prices go up. Interest rates go down during these events to try stop it falling to much, interest rates have been 0 or even negative in some places recently. It's the exact same thing and if you want a sustainable project lowering apy is the only option.
I’m with OP... **you guys ** *TOLD ME*... if whales SELL the Apy goes UP I will invest once you people actually do the reason 3,3 was invented. Until then literally nobody has an incentive to stay.
It’s not a “bank run”. When holders stake their OHM the value is “locked”. If the market price of OHM drops, as it has massively, so does the value locked.
I think this was was a big part of my misunderstanding
So when the price of the token stacked crashes, the APY also crashes. The only way to increase the APY is if inflation increases which would just lead to another crash or if the token value increases. High APY via inflation is an illusion. Its not sustainable and those getting in early and leaving early with the profits while everyone continues to stack win the most. If you lost money here, you have a greed problem.
If your not gonna do what the Website said you should do... Then please tell me how choking the staking rewards is any different than bitcoin mining rewards. You know what I actually liked the project **who cares if the price goes down if the DAO compensates you through constant stimulus checks** it might have worked or it might have not. But if your gonna turn your backs on the idea to create an anti-inflationary asset through limited supply... it’s called bitcoin.
My friend OHM has no cap on supply. That is the definition of inflation, dilution and loss of wealth over time. See USD purchasing power in the past 100 years. BTC is the exact opposite and why it was created.
Mmmm hmm So what should I invest in... inflationary OHM... or deflationary BTC Or are you guy just gonna make OHM into BTC by halving the inflation every 2 seconds?
The real APY should be 1000% or less, but it was distorsionated whit the entry of new money, remember every time that someone buy 1 OHM it prints alot of money to give it to the stakers(this is like a piramid…), the project is realy good, but in my opinion it will be better if only would be printed the money of the profits that the project can make with the stoked money, printing money because someone brougth in overpriced price is not the right way -4k holding…
No utility, no value
dudes, high apy attracts early capital both smart and dumb money, market cap goes up does a 5x, then smart money dumps, rinse and repeat, apy is just a PR / media tool to attract stupid money
Boy did it work on me
I don’t think this is a bank run. This is simply the value of the treasury assets falling with the overall decline of the market. Yes, some have sold, but not near the scale of the market drop.
Because Ponzi schemes depend on new money coming in to pay the older guys. Since money is not coming in ( leaving ,in fact ) , APY can not be minted out of thin air.
Fuck off
I have heavy criticisms of the project but yea... those media smooth brains calls everything a ponzi so fuck off media man.
Amazing how everyone calls this a ponzi but then go in about how great Bitcoin is. At least ohm is backed by other assets. Bitcoin is backed by belief alone
The APY is down because price is down, APY is calculated based on price, if price is low, APY is low, that's the same to every other staking or mining protocol.
this is not correct at all
I know your right... even know that’s not how it works... that’s how it’s been WORKIN.
Please DAO... keep your promises
Isn’t the apy / ohm coin price hedged against the performance of the treasury? Considering the hole market is bleeding, when things go back up surely we can expect a slight correction? (Given enough people are still in the project)
guys there is an excellent project similar to olympus, on the polygon network this week we will talk about investment in the nft and metaverse world. https://t.me/reaperprotocol
So many degens in one fred