Current Proposal
A total of 240,000 rUMB1 can be converted each day for the next 6 months after conversion is live.
I see few disadvantages with this approach.
Potential Disadvantages
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Sniping - It is possible for big whales to easily snipe and claim all the tokens available as soon as they are added to the contract
-
Gas Wars - we are creating a situation where everyday is like a new token release with first come first situation, where people will try to get their transaction confirmed asap.
-
Disharmony in community - There will always be people who will miss out, causing unnecessary friction
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Potential Dumps - If a whale is able to snipe all tokens for the day, they can easily dump them
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Discouraging - discouraging new users from joining the community for fear of a weeks-long sell off
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Temporary Confidence Loss - existing users may sell their tokens just before conversion for fear of a bearish trend lasting weeks
(thanks to crypto_mads)
Alternative Solution
-
The total amount distributed (43.2mil) like an linear decline
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The claimed rUMB1 are recorded on a 2 daily basis, and cannot be switched into UMB until 12 months after they have been mined. So if you have mined 10 rUMB1 on 01 - 02/15/2021, they are exchangeable to UMB on 01/15/2022.
-
The amount paid out in the first month is higher than in the remaining months. A increasing percentage amount of the following months, is added to the mining rewards of the first month, so that a linear decline arises, and the “price” only in the first few weeks noticeably under pressure, which can counteract with good marketing and the rUMB1 vault for rUMB2, and the market can recover relatively quickly.
| Month |
1 Month |
2 Months |
3 months |
4 months |
5 Months |
6 Months |
| Payout quantity |
100%+ Z |
100%- 40% |
100%-45% |
100%-50% |
100%-55% |
100%-60% |
Z= 40% * month 2 + 45% * month 3* + 50%* month4 + 55% * month 5 + 60%* month 6
Example:
USER #A has earned 100 rUMB1 for the 1st month, on 10 days of this month. In the remaining months he has earned 150 rUMB1 each. So in total. 850 rUMB1 (APY disregarded).
He has earned every day of the first month, 33.33 rUMB1 (10 days). He can convert each day, one year after he mined them, into UMB, but not only 33.33 rUMB1 but 33.33 rUMB1 + % of each total mined rUMB1s of the followings months, divided evenly on the mining days of the first month.
Each day of the 10 days of the first month: 33,33 rUMB1 + (150 * 0,60 + 150 * 0,55 + 150*0,50 + 150 * 0,45 + 150 * 40)/ 10 rUMB1
mined days of the 2nd month: Daily rUMB1 reward *0,5
mined days of the 3rd month: Daily rUMB1 reward *0,4
mined days of the 4th month: Daily rUMB1 reward *0,3
mined days of the 5th month: Daily rUMB1 reward *0,2
mind days of the 6th month: Daily rUMB1 reward *0,1
- The rationale here is that the claim pressure is quite high in the first month (but not to high), but decreases heavily in the first month and in the following months steadily over time. A continuous equal selling pressure might not be beneficial, as you would like to have “the problem” behind you, but without releasing too many tokens in the beginning.
- While according to the current theoretical proposal users have to look at the chart with a negative feeling for the next 6 months, many can breathe a sigh of relief after the first month, or even the first weeks!
- with proper countermeasures, good news, development reports and marketing, the selling pressure could also be alleviated in the first weeks, as well as the fact that you implement a rUMB2 vault with lock up option for 6-12 months (individual vesting)
Users who have bought their rUMB1 tokens would also have to wait 6 months after receiving them into their wallets, until they can convert them.
