“So I have been reading a bunch of this thread

Question

“So I have been reading a bunch of this thread

to gather all the info I can glean on the moonbeam auction and I think we can deduce quite a bit.

So the moonriver auction gives us some clues. The reward was 30% of MOVR total circulation or 3,000,000 MOVR for 6 months. Roughly 200k KSM was loaned which worked out to about 14.5 to 1. That is for every 1 KSM loaned, 14.5 MOVR will be given out (vested over 6 months).

Now based on the success of MOVR that was incredibly profitable but also means that the math suggests moonbeam will be much less so. Why? Well, let’s see.

First off, the moonbeam auction will cover a lease for 2 years rather than 6 months, so right there your dot will be tied up four times as long. Also, the rewards will be just 5% of the circulation or 50,000,000 (this is according to the allocation page which says 15% for all crowd loans which has to cover six years). DOT is much cheaper and more plentiful than KSM so what is the expected amount loaned? I could actually see more than 50 million DOT put into the crowd loan. That would actually put the ratio at less than one GLMR per DOT loaned. Even 10 to 1 would not really be that good as you’ll see.

To make matters worse, moonbeam had a pre-sale selling 100,000,000 GLMR or twice the allocation for this first lease and sold them for 25 c per GLMR. I have seen many people declare on twitter that they managed to snag 20k or 30k GLMR at the pre-sale. These will be handed out just forty days after the network launch. So that 10 GLMR reward I mentioned above is actually a 2.50 reward for 2 years of losing control of your polkadot which could surge and the fall back down during that two years.

Since there is so much hype it seems certain moonbeam will get a lease despite how little they reward, so I’m not sure what their incentive is to give users a better reward.

Just saying this as a warning about entering this loan because it is very likely not going to be nearly as profitable as the Moonriver one. We won’t even know what the final DOT to GLMR ratio is until all the dot loaned is counted at the end when it is too late for us to change our minds about it.

Also remember there will be 10 million total MOVR and there’s going to be 1 billion GLMR. There’s 10 million Kusama and 1.1 billion Polkadot. If MOVR is 400, the equivalent in GLMR is 4. Most of the popular ethereum chains like matic are in the 3-8 billion MC range and this one hasn’t even gotten off the ground yet.”

#blockchain #cryptocurrency #english #moonbeam

0

26.10.2021

6 ответов

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Rocky Автор вопроса

Blacksmith
Hate to break it to you, but it’s 100M GLMR not 50...

so we are going down further , lol

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26.10.2021

Manuel

This has some errors and bad assumptions

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26.10.2021

Blacksmith

Manuel
This has some errors and bad assumptions

Terrible, he didn’t even check the announcementsol

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26.10.2021

W T

Manuel
This has some errors and bad assumptions

What are the errors and bad assumptions?

0

26.10.2021

Manuel

W T
What are the errors and bad assumptions?

A ton. Just mentioning some, wrong percentage of GLMR as rewards for the crowdloan, wrong percentage of tokens sold in the Take Flight event, wrong assumption that GLMR will have the same MC as MOVR, wrong number of lease months for Moonriver (not 6 months but 48 weeks).

0

26.10.2021

Blacksmith · Accepted Answer

Blacksmith

Hate to break it to you, but it’s 100M GLMR not 50M…

0

26.10.2021

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“So I have been reading a bunch of this thread

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