Thank you @you425 for the post.
Also @bLd759, let me try to answer you in this post.
I have a general understanding of the past funding amounts and future needs.
I will assume that we will proceed with Option 2 as you proposed.
Great to hear this from you.
1.Regarding the above answer, do you mean that all of the protocol revenue will be distributed to ve voters? That would mean that the funds already raised to develop and maintain the protocol would be gone in less than two years. What is the plan for obtaining the funds for continued development?
Thanks for your concern. As you might know, protocols such as Curve try to distribute revenue to users from the treasury as much as possible. At the same time, those protocols try to increase the value of the native asset (token) to continue development. Our team is aiming to manage the protocol almost in the same way.
2.You need $500k worth of $LAY to provide $1M worth of liquidity. Where would the allocation for this amount come from? Based on the current $LAY price, you would need about 63M LAY. This is about 6.3% of total supply.
Currently, we’re planning to allocate the amount to be borrowed from shares of remained IDO (4.5%) and Community Growth. We’ve already assigned 5.5% of IDO in the first IDO and second token sale. By the way, the fund for No.1 in this proposal will be allocated from Team’s share.
3.This is not a question for NEO, but for the entire Astar Community to know: if you do Option2, you will be offering a LAY-WASTR LP. As I am sure you know, offering liquidity will result in IL. I believe that accepting this proposal means supporting Starlay and assuming that the price of $LAY will increase. This in itself is not a problem, but borrowing $LAY from Starlay to provide liquidity is taking a risk.
It is safe to say that there is no direct burden on the Community as it uses $ASTR (public goods) stored in Astar’s Treasury. However, if the price of $LAY does not go as expected and falls, $LAY in the AMM Pool will increase and $ASTR will flow out. This means that the circulating supply will increase, diluting the value of $ASTR held by the community. In other words, it is indirectly a burden to the community. I wrote this as a threat, but even if this were to happen, it would hardly be a hindrance because it is not a large amount. However, we need to know what could happen and what the risks are. Indirectly, we are supporting them with our assets.
Yes, agree with you. While there is a chance for Astar treasury to earn liquidity fees, there is also a risk. Considering the amount of Astar currently circulates, yes, have the same understanding with you that it won’t be a big issue for the ASTR price even if some proportions of ASTR in the pool dilute due to the price changes of LAY.
Along with the risk, I hope we can discuss the possibility of how to use earned liquidity fees for Astar treasury and the ecosystem. Willing to participate in those discussions if requested.
I have written a lot, but I am by no means unsupportive of Starlay. I want the team to do well. However, I don’t want this to be the status of a project to which the Incubation Program has been applied (even though it has graduated). I want them to show me something that makes me think, “I think we can successfully rebuild this.”However, some of you may have participated in Starlay’s IDO solely because it was accepted into the Incubation Program. I am a member of the Astar Community who has high hopes for Astar and wants it to grow. I don’t want to be too picky, but I believe that we all need to seriously think and discuss (not complain) for the future and that will lead to DAO. But even here, if there is no transparency, there is no discussion.
We hope that this case will help Astar and the community grow in the future. Now is the time to step up to the plate!
Once again, we deeply apologize for the confusion we have made. However, I (and I believe the team also) have realized by all the discussions we’ve had in this forum in these nine days that Astar is loved by many users and ambassadors. It was an honor to have discussions with you and all the people.
Yes, let’s steps toward a better ecosystem.