If you do preliminary chainalysis on TIME token, you will see that wheals are trading TIME on HF. This goes against the whole (3,3) gaming theory. The more TIME traders we have the more volatility and selling pressure we will have. Traders make profits out of volatility, It is FACT. They are exploiting a bug called NO LOCKING! The big money are coming in just before the rebase and getting out after it. buying at the bottom and selling when the price go 1 point up.
The whole premise of TIME is holding and the more you hold the more profits and rewards you will get. So far that is not what is happing! The TIME is price is going down and the APY is going also down?!!! The APY fluctuate, I know but it show NOT go down when the price do, right? It should be the opposite. Unless, I did not get the memo. The less money in the protocol means people are selling and this is recorded on the blockchain on Avalanche that should trigger higher APY to reward holders and to incentive new buyer which in theory will increase the price. This is what should be happening, but the reality is different. WHY?
I have a proposals :
1. TIME should have rewarding locking mechanism set in place to block or at least reduce HF Traders in order to sustain and eventually push the price of TIME up.
The rewarding mechanism shouldn’t be complicated. We can introduce no trading window of 72 where you can not sell your TIME during this time. This will deter Traders form doing HF trading putting high selling pressure on TIME price.
2. Remaking of the APY and the rewarding mechanism for people who hold more than 30 days to incentive more people to lock their holding voluntarily. I think that no one will argue over the fact that if more people hold the price will go up!
3. Please if you don’t have something better to say here do not bash just to bash.
I’m just a little froggy, i’m not a whale, so i cannot test this theory and see if i get a profit or i pay more on fees. I trust that there are far more smart and knowledgeable people around here that can tell if something is exploitable or not.
As far as the TIME price goes, staking actually mints more TIME, thus dropping the price of it. The best solution for staking is actually wMEMO. It captures the rebase, but it doesn’t mint more TIME.
Buying and staking is an incentive. You can’t force people to do it. It’s hot a hard rule. Every market in crypto if volatile. If you can’t handle the volatility then you should go to a more stable market like gold or something. Even that has its ups and downs. You can’t have the ups without the downs.
No, minting is what’s driving the price down. Staking is just a stock split. Minting creates more coins. They need to either slow the minting or stop it eventually and have people trade existing coins. Dont look at the price of time or memo but look at the price of wmemo, the treasury and market cap.
It would, that’s why its better to keep track of the price of your wmemo rather than your time/memo. In any case, yes it’s down now, but not really any more than any other crypto. Eth was almost at $5k per coin, BTC was $69k and avax was like $138.
I agree with you but if they achieve that means STOPING the APY and if they do that people will leave. its like catch 22. Plus, what is the use-case of wMEMO or even TIME anyway? Just stake for for stake and keep on staking. Also, where does the value of wMEMO is coming from? More work need to be done ASAP is they want WONDERLAND to survive.
The APY means nothing if it does not catch up with the price bing falling. I agree that inflation in TIME is a bug that needs to be fixed ASAP. However, they got theirselves in really bad conner now. If they stop the APY TIME will fall and people will leave.
A better case should have been incentivizing people to stake proportionally to TIME inflation rate for longer period of time. It’s called delay gratification. But they decided to go the easy route meanwhile TIME price is falling %80 and we didn’t even have BTC crashing?
Its just a fruit for thought. I will be selling at $2000. Good luck.