I know we’re still early but it’s pretty clear that old supporters of TrustToken have pretty much been left in the dust and new entrants are being scared away by the current token economics.
We funded a long window of development, rollout, and this massive pivot into DeFi, but now we are hit with unfavorable economics that the community is starting to notice.
On top of having to wait 2 years to receive all tokens (after 2.5+ years of previous waiting), I believe there are ~1.5M new TRU minted DAILY. I’m a patient person and investor and vest periods are fine with me – but this kind of thing pushes the limits on that when you sit on the sidelines knowing that value will inevitably melt away to newcomers often looking for a quick flip. It’s just too much. TVL and other metrics can go up, great, but this is looking like a CRV (Curve.Fi) situation and that really hurts the foundation of a project. Moreover, locked/vesting tokens cannot be staked, so old investors cannot even try to recoup some of that value lost in other areas.
Why can’t projects focus on value accrual and scarcity like YFI? Wide distribution can still occur with scarcity, but many people just want to hand out their tokens like candy…
It feels like it’s too late to propose something to prevent this, but I’d like to get this out there, since I know it’s a growing concern across the community (both old supporters AND new entrants).
I will say, the app itself and the concept have a ton of potential and the TrustToken team has been very helpful and wonderful. A lot of the concerns simply boil down to token economics. Has the TrueFi team discussed altering this at all? I believe there are supply burns that occur but is it really enough?
Ive raised it many times in the trusttoken forum and I think it would only be fair to allow private sale investors to be able to stake their locked tokens.
I understand there are technical blockers such as the inability to transfer locked tokens to someone else in the case of a tru stake/vote… maybe a way would be to allow locked tokens to be farmed only?
What do you think? I think we should move this to a proposal quite rapidly so that we dont lose much of the early comers advantage…
Hey folks, I think the concerns about the rate of TRU emission from the farms are legitimate. Note though that reducing TRU emission will likely also reduce the APY of the farms and therefore may slow the growth of the protocol.
Let’s start with an informal poll to see how the TRU community feels, and if a change is needed, we may move this to an on-chain TRU vote.
Personally I would vote that if we are going to decrease the rate of TRU emission we do it gradually over time, because a sudden decrease might scare away farmers and users (this happened with swerve.fi).
I think you should add an option on the vote that includes:
Release the newly farmed TRU on an unlock schedule.
I think this solves the issue of the APY as well as prevent newly farmed TRU from being sold right away and hurting the price of TRU.
I don’t know what the appropriate locking schedule for farmed TRU should be, but I do think that allowing those TRU to be sold on a schedule makes sense to me.
I also think the APY for the ETH/TRU pool actually needs to be the same or even HIGHER. The risks that LPs provide right now from the impermanent loss (due to the crash in the price of TRU) really makes it difficult for someone to farm TRU profitably. That’s why you see a lot of LPs pulling out (I believe over $1M net removals just today) and selling all of their TRU (and hurting the price further).
Decrease the rate of TRU emission
Keep the rate of emission the same
Increase rate of emission