$MINE intrinsic value

Grateful if anyone solid in the community can provide a plain explanation for how $MINE would actually have intrinsic value over time. I get that Pylon will be the launchpad and funding platform for Terra projects, but I don’t understand how that - if successful - gives increasing intrinsic value to $MINE over time.

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I’d love to know the answer too. Anyone dare to eli5?

My bet is that when all $MINE is distributed, they would switch from UST to MINE for deposits into new projects. This would cause a pressure on $MINE price and it would go quite high in the future.

Maybe also MINE would be paired with all new tokens introduces on pylon platform. That would also put price into pressure since there would be new LPs and stuff like that.

If this is not the case I do not have an idea how they can keep current price. Since most of the people would dump their $MINE as soon as rewards are unlocked pushing price to 0.

Anyone from the Community Council care to comment on this one?

The current incentive model is flawed. I wrote a proposal on how to fix it. Have a look and provide your feedback if enough people are aligned with the future direction then we can collectively propose to change it.

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$Mine intrinsic value: Guaranteed Access & Better Pricing for scarce IDOs!!! :slight_smile:

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I don’t know. All I know is that all the launchpad crypto projects share the same crazy inflation, and that their chart all look the same : ranging at best, dumping in most cases. Even DAO maker which has the best IDOs and probably the biggest market cap, is struggling to keep the price in range. They constantly change the conditions to be eligible to IDOs so that people buy more & more, and never sell.

  • they raised the minimum tokens for IDOs several times.
  • added a rule that only DAO holders get the vesting tokens
  • reduced the allocations so that there is a pool of tokens share amongst all DAO holders
  • probably more but I don’t remember all the changes.

Your suggested fix makes quite a lot of sense to me. Thanks!

Intrinsic value for $MINE will come from two things:

  1. Sustained cash flows that are returned to $MINE stakers
  2. A robust treasury that is controlled by $MINE stakers and can be distributed to $MINE stakers
  3. Any other benefits that might come from holding / staking $MINE

Take a look at this proposal… It’s super interesting and I’m very supportive of it: Establish a Treasury + Redirect MINE Airdrops for LUNA to MINE stakers - #4 by ed.pylon

really concerned about this too, UST staking for airdrops and pool for new projects should be solely changed to MINE staking for the airdrops and pools for new projects.
LOL, 1k MINE is like peanuts which anyone can afford, what is the governance doing to increase MINE value, being UST is just a stable coin.
i totally understand that stablekwon wants to make UST a real time money , but we need to think about MINE aswell ! no offense !

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Exactly my thoughts! We need to urgently begin to work out how to raise the value of MINE.

If there will be a switch from UST to MINE, there should be a set target not when all $MINE is distributed; when will that be?

I think there is an untapped potential in increasing MINE value through Pylon Pools.

Let me preface by saying that at present, ANYBODY can deposit into Pylon pools. You dont need MINE staked. And wheres the value accrual to MINE for this?

My thoughts are two-fold and can be a mix of both:

  1. Entry barrier to Pylon Pools - maybe there needs to be some sort of relationship between MINE staking and depositing into Pylon Pools. Perhaps having 10k MINE will give you 0.2x token emission from the pool, 20k MINE 0.4x and so on so forth. Or maybe its as simple as:

1k MINE Staked - capped at 500UST deposited into pools
10k MINE Staked - capped at 5000UST deposted into poools
100k MINE Staked - no limit

I’m just pulling out numbers out of my ass but you get what I mean. Create a rlationship between having MINE staked and depositing into pools to create value in the token. Think of MINE as a buying a membership into using Pylon yield redirection.

  1. Give some return to MINE stakers from the anchor yields from Pools. Currently all yields are redirected to teams. For MINE pools and TWD pools this is upwards of 500k to 700k UST A MONTH to teams, and we’ve no idea how they’re spending them. Since ANYBODY can deposit into pools, I say we take a portion of that yield and redirect it to a Pylon treasury or buyback+burn or to MINE stakers.

We can also set up a parameter on each project page to which how much yield is redirected to Projects and how much is redirected to the treasury, with a minimum of 50%. If a team is not performing, MINE stakers can vote to change the parameters to give less yield to teams. Think 1inch.exchange and how voters can vote to change these parameters. Or maybe even that people who vote and actively keep projects in check get rewarded from the portion of the yield.

Or maybe a mix of the above. Again, numbers came out of my ass but I hope my point comes across.

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Great points @SimonSez, I think we should go down this path to some extent, and it should be very easy to implement.

To @a11h

Before thinking about the answer on this question, let’s be clear about the identity of $MINE token.
It is clearly mentioned on the white paper or documentation that $MINE is a governance token of Pylon protocol. So intrinsic value of $MINE is equivalent to the value of Pylon Governance system.
To increase or promote the value of $MINE, then we need to find a way to increase the value of Pylon governance first, not to make it a membership token that provides privileges to its owner. Since it is designed to be a governance token, we cannot expect any token economics on $MINE, at least right now.

We need to always remember that $MINE is a “GOVERNANCE TOKEN”, not a utility or a platform token, and our solution on $MINE should always start from here. And to do that, we need to build sound and quality of governance system first. Please check this link on my previous post (1, 2) if you have interest on it.

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