DH1 Adjustment

Background:

The DH1 (6,6) Staking Pool has been live now for 12 days and has been very successful in attracting new members into MetaversePRO and rewarding those already here. However, it has already created significant selling pressure. We believe the right course of action now is to start winding up DH1 by first reducing the super high (6,6) APY and thus alleviating the selling pressure, and then begin work on designing DH2, the next iteration of the (6,6) and make it even better than DH1 based on lessons learned in DH1.

Motivation: The combined ROI of the 2% daily ROI in the (6,6) Pool plus the (3,3) staking ROI makes for an overall extremely high daily ROI, and this has been successful in attracting many people to agree to lock up their tokens; but, at the same time, such a high APY has also created arbitrage opportunities that are creating high selling pressure at each hourly compound. So, what was intended to be a warm safe place for high APY under “Stake & Hold”, has turned out to be harmful to Diamond Hands.

Specifics: The daily ROI for the (6,6) Staking Pool should be lowered to a level of 0.2%. Although this seems low at first glance, when you combine the underlying (3,3) rebasing plus this 0.2% daily ROI from the (6,6), you end up with a very attractive 155,000% APY. Keep in mind that the initial goal was to reward the true Diamond Hands and to core principles that can respect and reward their loyalty:

1. Short-term price moves are not important
   

2. Excessively high APY hurts the market because it allows for arbitrage opportunities that can be counterproductive
   

3. Diamond Hands have no intention of unstaking from (3,3) and selling, and so locking into (6,6) should offer even better incentives (they’re not planning to sell, anyways. So, why shouldn’t they get something extra).
   

4. A slightly lower APY in the (6,6) will still offer healthy rewards through compounding, but barriers to entry should still be kept low.
   

We are a DAO, which means we can address problems as soon as they are discovered. The main thing is to continue building and making (6,6) better and better.

The following are the actions that we hope to take:

1. The rules for the DH1 (6,6) Pool will remain the same, but the daily ROI will be reduced down to 0.2% over a 24 to 48 hour period. This was already mentioned in a previous proposal but now needs to be implemented quickly.
2. (6,6) early withdrawal fee reduced from 30% to 10%.
3. We can now begin designing DH2 and then put it forward as a proposal for voting.
4. Treasury assets will temporarily not be used to repurchase tokens from the market to support the price.