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OtterClamOtterClamby0x63B0fB7FE68342aFad3D63eF743DE4A74CDF462B0x63B0…462B

CIP001 - Reduce Total Supply

Voting ended over 4 years agoSucceeded

By reviewing OtterClam's protocol status, we found several concerns:

  1. The total supply is high. Currently, It's 374960.
  2. The backing per CLAM and the runway are rather low.
  3. The bond's premium is low.

To improve protocol health, I would like to present migration to CLAMv2 in 1:5 ratio. By that means we reduce 80% supply to 20% of current. Everyone's CLAM number will be smaller but value stay the same. The price will open by x 5 after the migration, around $100~$120, so our bonds selling can create more premium.

It works like this: reduce supply -> higher price per CLAM -> more premium of bond selling-> higher runway

The simulation matrix: https://docs.google.com/spreadsheets/d/1SZWiLitlQ7REYvEUa8bgFFoCAvyxER2T_y2vLvx8CRM/edit#gid=0

I believe this migration could make our protocol more healthy and sustainable.

Off-Chain Vote

For
35.02K 73.6%
Against
11.77K 24.7%
Abstain
804.65 1.7%
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Timeline

Nov 14, 2021Proposal created
Nov 14, 2021Proposal vote started
Nov 15, 2021Proposal vote ended
Oct 26, 2023Proposal updated