The apy of the protocol is mainly sustainable by the fact that we’re printing our own money (TIME) at hyperinflation speed (1.8% daily increase in token supply).
No offense to you personally (and I really mean it, I’m not talking with negativity) but it baffles me that still so many fail to understand this basic principle.
I’ve seen many people focusing on the apy, or scared that the apy won’t sustain, and apy numbers talking in general.
What high apy+rebase system does is simply preserving our marketshare, so that if we represent 1% of the entire market today with 100 TIME, we will still represent 1% in a month with 200 TIME and double the amount of TIME in circulation.
We’re dividing a pie into smaller pieces at every rebase, but the pie doesn’t become bigger because of that. We’re not creating wealth with that. The apy could literally be 5 quadrillion and you 5x the amount of time you have at every rebase, it would not matter.
The apy we currently have is a ticking time bomb, because for sure it’s not sustainable, in some months we will see the amount of time crashing against the floor given by backing price if we do not lower it substantially, or even better: Switch to revenue sharing model.
I know that 100% return yearly doesn’t shine as bright as a OMG 85K APY LMAO WEN LAMBO ,
but more people need to grasp that with revenue sharing model, they’d be getting “real cash” out of their rebases…aka we would be growing the pie every 8 hours for real and distributing back to investors.
Also, other hidden benefits of such a change would be for TIME to stop being hyperinflated. it could even become slightly deflationary if we implement a small burn on fees…what would that bring us?
Well, right now it wouldn’t make sense for any centralized exchange to trade TIME/whatever pair, because it’s an asset built to depreciation. Also, who would just trade TIME on a cex without the benefit you get off of rebases? While switching our model would transform TIME into a “legit” asset where it’s price really would reflect it’s value.
At some point when I’ll have more time to think it throu I’ll create a detailed thread trying to explain this