Long write up, definitely encourage you to talk internally and just address it as question 8 when answering/commenting lol.
- AFAIK, the team wants to increase the supply of the token for a few reasons.
→ The main citied reason, is for staking rewards to reduce the chance of a selling exodus.
→ Secondly is for regulatory compliance and dev costs. 60ish people on team, debit costs a lot of time/hours to keep compliant (so were told)
→ Thirdly, is for a growth fund, be it marketing, incentives, promotions, etc.
Addressing the first part, staking rewards:
Currently the team offers 50% APY on ATH tokens, assuming there are 100k ATH tokens staked, and a 50% APY. This would last for over 5 years currently. Obviously the market caps of STMX and ATH are quite different, as are the amount of tokens in circulation.
Has the team considered offering a 10000 STMX: 1 ATH token staking contract? (no impermanent loss)
(there are 10 thousand STMX token for every 1 ATH token)
It provides a reason to buy ATH, which also increase the potential for governance interaction. It offers a avenue for STMX holders to earn a token that is already created and accepted (no dilution or additional tokens required). It allows the team to not spend STMX treasury reserves for some time, allowing for staking rewards to be paid in STMX in the future.
Addressing the second part, team/dev costs.
The team wants to add 10% year one, 10% year two, and 5% year three.
The bear market is likely to continue until 2024/2025. Assuming price stagnates at 0.005$ to 0.01$ , How much does the team anticipate it will need to cover costs. Assuming half of the new “tokens” per year go to STMX treasury, that’s 2.5M to 5M USD for year one and year two.
That’s a average pay of 41.6k a year on the low end, up to 83.2k a year. Does the team think this will be enough? Is it too much?
Addressing the third part, Growth fund;
With the few marketing campaigns we have had (Basketball, poker, racing), we haven’t seen a massive growth in users (I could be wrong). It also is a bear market, so yeah, there’s that.
What types of things has the team learned form these partnerships? In what ways are the team thinking about spending this newly raised “growth fund” money?
User acquisition + retention is hard, but we have to find a way to do it.
Sorry for long write up.