Redomination is awesomely welcomed…
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In my opinion a redomination of 100 like DOT would make more sense: from 10'000'000'000 to 100'000'000. Let's assume that the total project value at initiation is between 50'000'000 and 100’000’000$ it will set a price between 0.50$ and 1$. In case of a redomination of 1000 I think that keeping a psychological price above 5$ would be difficult in the current context. On the other hand some quality projects like SORA managed to do it successfully.
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I’m no expert so please don’t hate…
if we use the lockdrop calculator for 137,000 ETH on 300 days give us 7.9 B tokens approx I know … i know people might pick 1000 or 30 days it’s hard to calculate but in my opinion something about 10B total supply sounds about right if we use that prediction to calculate token price in USDC base on the current price of ETH …
PLM price should be arround .0048 by I’m not here to discuss price .My point is, if that is the case .0048 usdc sounds cheap for such a big project and .048 sounds like most of uniswap shit coins but .48 sounds like a decent starting project to attract more investors and make them feel they still catching the opportunity of investing in such a great project after lockdrop for a reasonable cheap price in early stages but 4.8 doesnt sound right knowing DOT price is
currently around 4.6 that’s is my opinion don’t hate be happy …
thank you
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I would opt for 100x, as Milica suggested
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nice,this fumla mode is so excellent and adaptable,bec per PLM price impact by amout reasons ,so base in MILICA saying ,the one PLM price in 0.8$ to 1.5$。
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sota,i,m from chinese count PLM community ,we,re talk about relate method survey price PLM together,finally as for MiLica think about mex impaction and tation,she methods all reasonable and right ,same you suggest,the chinese more and more point per PLM price in 0.5$ to 1.5$.
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10,000,000 PLM would be the best solution. Kusama showed that this amount of token can have a good effect on the price (and market cap). Market cap is important for attracting more users and developers to the ecosystem.
For this reason redenomination is not only aesthetic in nature, but will also affect the development of Plasm.
Therefore, it is important to make the right decision. 100 X (130 + mil tokens) redenomination will not be enough - to much tokens.
1000 X (13 + mil tokens) redenomination exactly what we need. Such a number of tokens will create a feeling of their scarcity - very good for ecosystem.
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My opinion on the matter is that;
- It makes absolutely no difference to anyone - small or big fish.
- It does look more serious if it not in fractions of pennies. Compare for example Etherium price with Trx price.
- The lower the supply, the better and more scarce most investors will believe the tokenomics is.
Overall, I would prefer a 1/1000 as this would make each token a scarce commodity that has considerable value. 1/100 would also be ok, and better than a supply in the multiple billions which seems quite unattractive and not scarce at all.
Against this goes perhaps that stocks sometimes do a stock-split (if the price of one share gets up in the thousands of dollars) to make it seem psychologically more attainable to the average person. However, PLM token price will not be thousands of dollars even with a 1/1000 renomination, so I don’t think this is a concern.
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Please write your opinion with mathematical or psychological reasons.
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I agree with @sota, we need an appropriate redenomination in order to have a starting price between 0.1$ and 1$
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Are we looking at $0.10 ~$1 as an initial market starting point or the starting point from lockdrop 1? As far as an initial market starting point goes, it really would be on us to set it prior to listing. If we are talking about redoing the formula we used for lockdrops, it will be harder but fairer by starting at let us say the amount paid and going from there. If today, for example, you went to the lockdrop page and locked 5 ETH at $365 for 30 days (the min you are able to lock) you get 19,577.772 PLM but through the proposed redenomination amount, your PLM becomes 19.577772 PLM. With the price of PLM being projected at $1, I have lost $1805+. The monetary value that was used puts the initial price of the PLM at around $0.0932+ per token purchased but after the proposed redenomination the price per will be $93.2+ per token purchased. I understand that going forward the proposed price per token will be $1 but it does not change the fact that the monetary price that was initially used to issue tokens no longer equals the “value” of what the lockdrop holders have in their wallets. With this being the case, will there be more tokens issued so that wallet’s “value” is a mirror of the token’s lockdrop purchased price? Based on this early investors are being punished for having faith in the company. Whereas a late investor might have the opportunity of paying $1 for a PLM token vs an early investor paying from $9.32+ to $93.2+ for the same token. No early investor would knowingly pay 9x ~ 90x the projected initial listing price. I believe this is where the difference between people that will be ISSUED PLM tokens as oppose to people that PURCHASE PLM lays. You can not say the token will now be $1 AFTER I purchased it for $0.0932 and not provide a way to keep my purchased tokens at my purchased price. When you drop the total amount you will have to make the same adjustments on cost per token, as the decimal moves to the left to lower the total amount we as investors must move our decimal to the right. We can go in circles playing the “value vs price” game but bottom-line will be (1) how much was paid, (2) how many I hold and (3) cost paid per token. I would LOVE for the listing price to be $0.50 ~$1 but at the same time don’t try to convince me that the 19.577772 PLM in my wallet is equal to the $1825 that I spent if PLM will cost will be $1 per token.
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I dont think you quite understand how the lockdrops work. You’re not/have not spent any money or ETH by participating in the lockdrop. You’re just locking up ETH for a specified period of time for a certain amount of PLM tokens, then you get your ETH back after the lockdrop time you have chosen. By participating in the lockdrop, you are literally getting free PLM tokens. The actual value of these PLM tokens is for the market to decide when they open for trading.
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I don’t think you understand how finance works. Nothing in connection to these lockdrops were “free”. People were incentivized to lock there ETH for how ever long to receive his/her PLM. You can look here https://docs.plasmnet.io/learn/lockdrop. It clearly states the Issue Ratio will be defined as follows:
Locked token is the number of locked tokens for the lockdrop
Dollar Rate token is the value for 1 token in Dollars
Lock Bonus days is the amount of bonus the user will receive according to the locked days
Issue Ratio = Locked token ×Dollar Rate token ×Lock Bonus days (token∈{ETH,DOT})
The number of tokens to be awarded to the lockdrop participant is determined by the calculated Issue Ratio. Participants in these lockdrops had a dollar rate associated with the PLM tokens that were issued and coincidentally it is still listed on the lockdrop page. An airdrop would have been closer to “free”. What happened is these lockdrops were more like a loan where instead of money being paid as interest on the loaned ETH it was PLM tokens. The longer you chose for them to hold your ETH, the more interest (PLM) was issued. Don’t shoot the messenger for just pointing this out but you can not over look the fact PLM was given a dollar rate during these lockdrops. Questions were being raised almost throughout this last lockdrop. People were questioning the strategy of having this many tokens minted. We watched it hit 3 billion and were dismissed. It then hit 5, 7, 9 and ended at over 13 billion tokens issued. We could have stopped or at the very least start to limit how many were being issued but we didn’t because the only focus was becoming a parachain. How about we make all lockdrop tokens none tradeable. Beginning from the date PLM lists, we have them unlock on something like a 10 day release schedule for example. That would help with price and we would know when the lockdrop tokens are coming. At the same time we could make it possible for all lockdrop tokens to be staked thus supporting the network while they are awaiting release. Depending on the unbonding time, we could further offset tokens being entered into the market. We could at the same time honor the contract with lockdrop holders and add security/stability to the network.
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Hi Sota,
I just wanted to say that redenomination of 10,000,000,000 / 1000 is too large of a redenomination in my opinion. I realize that the lockdrop was based on opportunity cost and it was our choice to choose the duration but for those who chose the biggest opportunity cost (1000 days) we are getting the worst deal in my opinion. If I had 500,000 PLM tokens with your proposed redenomination I would now have 500 PLM tokens… Even if the tokens were listed at $1 this is a huge opportunity cost. Part of the reason some of us may have made the decision for the longer duration was the quantity that we would have and the belief in the Plasm project. The Lockdrop 2 listed the quantity that we would be receiving and that was a huge driving factor in decision making by your community, reducing their supply by 1000 doesn’t seem fair to the community. I would kindly ask that the team uses 10,000,000,000 / 100 or 10,000,000,000 / 10. Thank you
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For me, $0.5 make sense a lot. (Target price)
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Quantity doesn’t matter. Target price matters.
Let’s say you have 10,000 PLM at the price of $0.0001 and it becomes 10 PLM. In this case, 1 PLM is $1 (target price). The value is the same. In this sense, redenomination is fair. Question is not quantity. The question we should think is the target price.
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No. I am sorry but there needs to be a balance. You are pulling a “target number” out of thin air with zero regard to what we investors actually staked. There are MANY tokens on the market that had their premarket “target price” alot higher than where they are now because the market will always have the last word on the price. I agree with @jcrypto3 saying that early investors who actually had faith in the project to lockup their ETH for longer periods of time are getting the worst outcome. This token is not like bitcoin for example where you are just holding the token in your wallet whereas the total value does not change. PLM is designed to be staked so quantity is more important than wallet value. Also what is the plan when it comes to the DOT lockdrop? Are we going to do the same as with the ETH lockdrops and have them lock their DOTs then tell them later that the amount that was listed has changed after we have their DOTs? We really need to fix this before the next lockdrop because this really may become a hurdle to have DOT investors actually want to stake with us.
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For the moment ,i think discuss the PLM Quantity and other price little early and sense,only full finish the 3rd LOCKDROP . all know total amount then fina judge target price.but differents countries communities get price nearly 0.5~1.2 dollar，same sota target price.
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Sorry I couldn’t get your point. What is your suggestion?
Redomination would be a good thing in my opinion, the total supply and the token price are not practical at the moment. It also gives the project a somewhat shady feeling at the first grasp, which is totally unjustified.
But things can go the other way around off course, as a btc or yfi price is also not practical. I think its a fine balance and a target price that doesn’t reach further than two decimals would be good and practical.
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