Founding Partner of the Blockchain Option Exchange in Derive Nick ForsterIn the proposal issued on September 12th, the platform raised Altcoin’s supply of DRV’s supply. The proposal predicts the printing of 500 million new Coins and the total supply will be increased by 50 percent. Development will create a dilution of 8.25 percent annually in the share of existing investors for four years.
New Coin supply and distribution plan on DRV
500 million pieces to be printed according to Forster’s offer DRV COINWill be transferred to the Derive Foundation. The name of the Foundation is planned to be transformed from the former name of the protocol to the Derive Foundation from the Lyra Foundation. 46 percent of the new Coins will be allocated to core contribution providers whose progressing processes have been largely completed. These coins will be deserved in four years and only when DRV’s market value increases over $ 150 million. The current market value of DRV is about 28.5 million dollars, according to CONECKO data.
In the proposal text, it was stated that the foundation and affiliated organizations did not have a token budget on a scale that would finance strategic partnerships. It is stated that the new supply is necessary for the execution of agreements that will provide liquidity and storage at the institutional level and to increase product diversity.
Forster said that an agreement was reached with an institutional partner and that negotiations continued with great liquidity providers at a further stage. However, the name of the cooperation company was not shared.
Strategic direction change in Altcoin
The proposal contains an approach contrary to the commitment of Derve’s “new coin will not be printed”. LyraIn the transformation of Drv Coin, the supply remained constant and was preserved as 1 billion coins. With the new offer, supply expansion is presented as a strategy to increase its competitiveness.
Forster also canceled in May Synthetix Team members and investors supporting the merger reported that the roads were separated. The merger in question was mutually terminated after criticism that the value of the investors were shown to be low.
Among the reasons for the proposal, Deribit’s need to compete against market domination, which is strengthened by Coinbase with a $ 2.9 billion purchase. The distribution model of the new Coins and the conditions of entitlement were designed for long -term employee loyalty and market stability.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
