I think to maintain price support of Hopr, a way to use the Dai constructively would be to transfer it to Hopr tokens and offer another staking round (using NFT rewards as before). Currently there are 37,401,017 Hopr tokens staked, if a reasonable expectation of 25 percent APR was offered that would be about 9.5 million tokens. If it was a 6 month staking (rather than a full year) that would be about 4.75 million tokens paid in interest. Transferring the Dai into Hopr would get you about 750,000 of those tokens, which is no small chunk of the cost. Additionally this would continue to lock up the Hopr tokens for price support and would encourage participation in all other Hopr areas for NFT rewards. I think this would be a good use of the Dai tokens.
This would be a long term option IMO as where we are in the cycle probably gives us 4-6 months before prices crash if BTC does its usual thing. The question i am asking i suppose, is “Are people going to be willing to lock up a stake of coins that could drop by up to 80%?” I am a full supporter and currently staking and assisting being active in the community, so in support but question the economics of this idea at this stage of the cycle.
Hello @maessedai, thank you for the proposal! For now I’ve marked it as invalid, as we’d like a little more specifics on the measure you propose. How would you distribute these 750,000 token to stakers — over which timeframe should that happen & when should it start? What are the benefits of that compared to other uses of the funds?
Kindly refer to our template to submit a valid porposal. UPDATED: PROPOSALS: Making proposals, validity rules and template
@thewanderingeditor and I are around if you have any questions.
Hey @jayveq no worries. My proposal was to transfer the dai into hopr and use the hopr tokens to supplement the next staking round (helping pay the interest cost received through the staking). I believe this will continue to support the price of hopr and the interest amount received (increasing supply of hopr tokens) would not have as adverse an effect of actual price of hopr token. The secondary positive impact is continuing to lock up a large portion of hopr tokens through the staking round so that the price of the hopr token price remains stable. It’s basically subsidising a staking round without as much interest depreciation of the hopr token (because of the increase in token population). This could begin in February of next year and last for 4-6 months. If this is not feasible, no worries, but thought it would be a good use of the funds to stabilise the token. Thanks for your consideration.