Waves World Loyalty Tokenomics
In order to reduce inflation and improve market value, we’re making some gradual changes to the daily distributions of the Top 300.
The plan will reduce supply coming onto the market – and with new demand, we will soon start to have a meaningful effect that benefits everyone.
From June 2018, until June 2019, Waves World airdropped 400,000,000 WW to its Loyal Lessors (approximately 40% of the total supply). Additionally, WW Top 300 Club has been airdropping 425,000 tokens per day to the Top 300.
While this is a welcome bonus for holders, we’re aware that there’s a downside to it.
The large airdrops place significant extra token supply on the market, potentially depressing the value for everyone.
We’re keen to make the airdrops both as sustainable and valuable for recipients over the long term.
We are therefore intending to make some gradual changes over the coming months.
Waves World Top 300 Loyalty Airdrops
Waves World is currently airdropping about 12.75 million tokens per month (425,000 WW per day for ~30 days) to the Top 300.
Beginning 17 February 2020, the amount is as follows:
Top 100 = 2,850 WW tokens per day
Top 200 = 700 WW tokens per day
Top 300 = 425 WW tokens per day
This schedule will decrease the airdrop to around 400,000 WW per day for 30 days beginning February 17, cutting a further 25,000 per day each month until we can sustain the airdrops and cover expenses.
Our intention is that the lower supply will result in greater value for those who are able to take advantage of the rewards.
Waves World node and marketplace buybacks, coupled with lower supply being exposed to the exchange, should result in advantageous economics for our end-user base.
Increasing demand
One of the significant benefits to the new emission schedule for the Waves network, launched in November 2019, is that there are now meaningful block rewards. We currently use 10% of these to buy back WW token from the open market – around 150 WAVES worth per week. The WW purchased goes to those who lease WAVES to our node, so they’re getting the most value.
The aim is to put ongoing demand into the token which, in a relatively thinly-traded market such as WW, should start to make a substantial difference.
We’ll be monitoring the results and potentially tweaking the process if we think we can improve it.
As part of our Community Governance Protocol, anyone may propose changes to this plan, and a vote will be made.
That’s all for now!
The Waves World Team