Suggestion to Developers:
Adjust WAVES consensus as needed to allow $1.15ml worth of WAVES to be minted per day and contributed to USDN backing.
Either it’s contributed “for free” or it’s paid-in in-exchange for SURF. If it’s used to purchase SURF then it can be argued to not even be inflationary at all and could be the last missing piece of the puzzle to recapitalize. Since the WAVES inflation is a cost borne by all WAVES holders, then the SURF token that is received in exchange of the newly minted WAVES should be airdropped to all WAVES wallets pro-rata to their WAVES holdings.
This is necessary to offset the 1.15ml USDN released from VIRES per day.
This “inflation” is very different from UST inflation, because it is limited in $ amount and it does not hit the market immediately, so will not cause a death spiral, and has a real chance to stop the current slow death spiral. The minting is not going to be wasted away. It is going towards the most critical goal of recapitalizing USDN. If USDN didn’t have a severe problem then WAVES would be x2-3 the current price. I would say the value in this inflation is much much larger than the cost, especially if SURF is airdropped to WAVES holders as fair compensation.
Again, what’s the alternative? Capital is not coming to the system irrespective of APY. Waves Pools would have had 200-300ml by now if it wasn’t for the capitalization problem.
If $1.15ml worth of WAVES per day is deemed too much, then change the number of days of USDN vesting on VIRES from 365 to 730 such that only $575k worth of WAVES per day need to be minted.
USDN and WAVES and everything else in the ecosystem is under a heavy heavy cloud of uncertainty due the BR situation.
If just enough WAVES is minted to buy SURF to offset the 1.15ml USDN hitting the market from Vires every day then everyone will feel safe and WAVES demand can skyrocket and USDN demand from the WX pools can skyrocket.
We are beyond the point of trying to make SURF more attractive. Even if NSBT holders were completely diluted it will not be enough to attract capital to SURF.
SURF needs to be force-bought to the tune of $1ml worth per day using freshly minted WAVES. The issued SURF should be airdropped to all WAVES wallets pro-rata to their WAVES holdings. This should be done for 365 days as an emergency measure to offset the vesting USDN on Vires.
The inflation will pay itself 10 times over.
I’m a conservative, and am against inflation in most cases.
I have never seen a clearer case where inflation will create more value than its cost.
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Change the vesting days of USDN on Vires from 365 to 730 such that only 500k USDN is released to the market per day.
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Inflate WAVES to the tune of $500k per day, use this to buy SURF from the SC, airdrop the issued-SURF to all Waves Wallets pro-rata to their WAVES holdings.
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Watch BR improve daily, sell pressure on USDN decrease, TVL in Waves Pool increase, BR improving at a higher pace, confidence returning, USDT/C capital returning to Vires and Waves System, BR improving further.
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After all USDN is vested (in 730 days), stop minting WAVES.
By the way, WAVES is already being inflated at 7% per year, which is about $125k per day ($650ml market cap x %7 / 365 days).
Inflating by another $500k per day to recapitalize USDN for 2 years until USDN from Vires is fully vested is not too much.