Ok, so I’ve mentioned this already in other places but I didn’t know about this one and I think this one might be best so I will post it also here, although I can’t believe myself that I am doing this because I don’t see much hopes of understanding my point (my previous attemps showed me that) and btw I have no financial benefit in here since I am not holding DODO, so I am potentially just wasting my time here
Anyways, in short, as you’ve might noticed it’s about the exit fee on stacking the DODO for vDODO and my feeling and calculations that it’s much too high and it’s not good for the project, for the price over all. Further in this topic I will try to explain my point, tho I am just a simple guy, so I am not sure how clear the outcome would be.
Inb4 by all of this I am not saying that the current price sleeping is due to this high exit fee, but rather that it’s most probably taking some important role in this.
As far as my understanding goes locking the token, stacking = better price stability, better price over all, etc.
Currently we have - in my view - only 2000+ stakers.
Current APY is ~150% = 0,41% daily
Current exit fee is ~7% = 7 divided by 0,41 = 17.
It takes 17 days to be just on 0 with the current exit fee, probably even more if we count that the exit fee is deducted from the whole vDODO so also the one we gained from stacking.
The first though that comes to my mind seeing such a number is the question of - who on earth would risk so much, for so little, especially in such fast and volatile market as crypto is.
Now, I don’t want to sound like bragging or something, but describing some situation is the only way I can make my point more stronger.
I have a friend who I perceive as one of the smartest guy I’ve ever met.
He is in crypto since many years + he studied math and seems to have quite a skill in understanding the most difficulties topics, including market, logic, math, etc. He looks after one website about the crypto.
I’ve asked him about what he thinks about my thoughts on DODO, exit fee, etc, and he basically confirmed what I also thought.
The exit fee is horrendously high in his understanding and he can’t imagine why would anyone would like to stake the dodo there, with such high risk, especially taking into consideration how many other projects are out there and what benefits they offer and without so crazy vision of punishment.
I did also some digging on telegram and I’ve noticed that I was not alone in my feeling, and there was some number of voices that said the same, that they would invest in dodo and would stake if this not high exit fee.
I’ve also heard some - short sighted in my understanding - replies, that it’s good that this exit fee is so high, because then there could be much more people stacking and this would lower the APY for that person.
I think it’s short sighted because yes, that particular person would have higher APY, but what is the use of this APY if the price is stable at best, and from just logic it could go up much faster up if there would be more people stacking and interested in stacking and therefore in wider perspective everyone would benefit more, even this guy with lower APYs, because it the mean time the DODO price would recompense it much more.
I don’t have exact numbers, because I am not a math guy and I haven’t asked my friend for any numbers either, we can figure it out later if we would find more approval for this, but initially I see reducing the exit fee by half is like minimum. 1/4 also not bad imho.
1/4 would still mean ~5 days with the current APY at middle exit fee, and it could easily go double this time, because the time increases with the APY dropping, and APY is dropping with more people stacking.
5-10 days in crypto market is huge and I think even 2-3 days is very safety mechanism for the price stabilisation which is the whole point of this exit fee I guess.
I haven’t seen many projects having either so high or any exit fees and somehow they manage to have better price stability and price over-all.
I also hope that this high exit fee is not mainly for the purpose of trying to keep alive the already dying project for as long as possible.
Nothing has to be pre-determined forever and we can change things and I see it as a possible and probably wise move to increase the exit fee again in the future(if we would to decrease it now), when the crypto market would become more mature and stable.
I take into consideration that I might be all wrong on this whole topic, so if you have any opinion or other ideas, please share them also