Recipient(s): Pocket Network Foundation
- Category: Agreement
- Fulfills: n/a
- Related Installments: n/a
- Asking Amount: 0
Do not do a wPOKT LBP, instead go directly to the bridge and DEX’s.
POKT is now listed on many exchanges, with apparently more on the way.
Volume is picking up on those exchanges and an expected “repricing” is occurring.
Many new market entrants have gotten into Pocket Network through this and subsequent activities.
wPOKT was originally expected to launch before this date, with an LBP and bridge following.
It has since been pushed back and because of this, concerns regarding the LBP are surfacing in the community.
This proposal is to bypass the LBP of wPOKT and instead go straight to the bridge.
A LBP’s main function is to raise funds while creating an initial “price discovery” event where the market provides a fair value estimate of the token given its new liquidity.
This made sense when POKT was trading at relatively low volume through OTC channels that the majority of market participants were unaware of, or not comfortable using. But now with the recent exchange listings this discovery is taking place on exchanges now.
The motivation for this proposal is to create a healthy discussion based on what I am hearing from community members. By openly discussing these concerns and alternative approaches, at the very least, we will have a transparent process in which the community can buy into.
0 Dollars, just time from Pocket Network Foundation to refactor the roadmap and communications.
An LBP will introduce new supply into the market that would not have otherwise been introduced, and may have an adverse effect on the current market repricing of the token.
Pocket Network expressed that the funds raised in n LBP would go directly into AMM’s anyway.
Even if the LBP was 10x of current CEX price, due to the active price discovery happening now, and the introduction of new supply, there may be an adverse effect on price actually where nobody buys at the high price, dumps at first chance of 2x and the resulting price is worse then it would have been otherwise.
There are examples of projects attempting similar things in the past, and the results reflected the concerns outlined above, fundraising goals were less than expected and price was less than before.
Whereas going direct to bridge has many benefits that are aligned with the vision of wPOKT
Smaller token holders don’t need to rely on sending their POKT to a third party to participate in shared nodes, they can either LP/Single-sided stake or stake in regenerative finance to lock supply while adding new utility (crowdsourcing DApp Bandwidth)
No additional circ. supply introduced
DEX’s can immediately accept wPOKT which will increase liquidity.
Community sentiment is even better, as it benefits the token and ecosystem & team doesn’t raise more money which would directly take from open market demand.
wPOKT may be priced different because it is a premium
- This may or may not be true, but introducing an LBP at this juncture and market conditions I believe will more adverse effects then the benefits of a slight premium if that.
We already committed to an LBP
- There may be some blow back from those that were waiting for LBP to deploy capital into pocket. I think by having this discussion openly we can mitigate that blow back, and at the end of the day, we can’t make everyone happy all of the time and I believe this is what is best for the project at this juncture.
Repricing has not happened yet
- This also may or may not be true, given macro market conditions I don’t think this is a risk worth taking. Going direct to bridge and DEX’s also creates more liquidity depth which can aid in any expected repricing events.
- Refactor roadmap to exclude LBP
- Maintain current roadmap an milestone dependent launch, accelerate timelines where possible given that LBP would be excluded.
- Refactor communications to re-educate community there will no longer be an LBP
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