I agree. But padding the dec supply with DEC-b is going to make it less likely we do get to that future.
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I agree. But padding the dec supply with DEC-b is going to make it less likely we do get to that future.
I can't see how. Can you help me?
Do you see how right now (since they've announced this) DEC has been collapsing in value while vouchers are up? DEC has dropped 20% since this announcement. That's the market telling you everything you need to know. If this passes, people are going to trade in their vouchers (not dec) for DEC-B. That means at the end of this we're going to still have almost all of the dec we have now but we'll also have 2 billion DEC-B sloshing around. This will make DEC less valuable. Not more.
But let's say for a second this doesn't happen and its 1.6 billion dec that gets burned. We still have 4.7 billion dec in circulation and now we have another 2 billion dec-b. Over the next year or so, if you're holding DEC and want to use it for some purpose that burns it, you'd be dumb not to go sell that dec and buy DEC-B on the secondary market and pocket the difference. DEC-B will be just a little cheaper than Dec due to its lesser features but it burns the same. So no one is going to be burning anymore DEC until DEC-B is gone. So what did they really accomplish other than adding 400 million DEC-B to a system that would still be sloshing in DEC?
And there is still 25-30 million DEC bring printed each month.
This is just a gift to the people who own all the node licenses who now have 50-80k vouchers and nothing to do with them. This is just a move to appease them so they don't sell. THis is why concentration of ownership is such a problem. THey'll hurt the whole economy to make sure a few people don't sell because those people own so much they would destroy the economy by leaving.
Thanks for answering. Of course since the proposal applied a 160 VOUCHER/DEC ratio the immediate market response was of selling DEC for VOUCHERS.
They want to fix both VOUCHER and DEC oversupply issue at the same time.
and it would be great if that were possible but its not with this proposal. Adding a bunch of decb to a pool of too much dec doesn't fix anything. And vouchers are only fixed if there's then a reason to have vouchers. Otherwise, the 40k per day oversupply (and the bigger problem of concentration of ownership in these vouchers) doesn't change. Even if they all get burned (meaning almost no dec gets burned) vouchers will still have all the same problems and they'll be back at a few cents within a week. Meanwhile, there's will be more burnable dec than we started with.
I totally get your point and agree, overall.
But let me speculate a little bit.
Right now market cap for VOUCHER is around 500k$ and for DEC is 3.5M$. There are 150k plot trading at 118$ each.. so roughly land plots have a 17M$ market cap. We can assume each land owner will have to spend 50% of plot value in buildings and upgrades.. and that 50% of that will be burned tokens (total speculation here, just to have a hint of the order of magnitude involved). There are out there millions of $ of potential sinks.
I think DEC-B is all about timing. Sinks will be available during 2023 but if economy twists earlier is better for everyone.
I think some sink will require VOUCHER and other DEC. So i would have preferred introducing DEC-B and VOUCHER-B... keeping stuffs separated. But people don't want new tokens.. so I understand this semplifacation and aggregation.
But this won't twist anything. Dec will not go up in value. Land will soak up a lot of dec but between now and then, there will be more DEC like tokens out there, not less. And there will still be a ton of actual dec. How would that increase the value?
In order for something like this to work, they need to increase the number drastically. Make it so big that it burns almost all the DEC. Don't leave 5.5 billion on the market and expect it to not be sold into heavily as soon as it gets above .90 again.
Yeah probably first DECB sale will soak up all vouchers and all DEC of hodlers, not affecting prices so much. But from what I heard there will be more sales after that