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?