Oneup tokenomics: Why is the Oneup token losing value ?
Since the Oneup token was created, I have been curating posts in the context of the Liotes project. I love to do that because I love everything related to blockchain gaming which is what the Oneup tribe is all about.
On one of our Liotes posts, somebody asked what we were thinking about the price evolution of the Oneup token. This inspired me to share my token analysis for Oneup.
Disclaimer: I have tried to gather all this information that I use in the analysis directly from the blockchain but there might be some mistakes and I would also like to inform you that this analysis is my own and shouldn't be considered as investment advice.
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The One up token was once valuable. I still have some One up, I use to trade it a lot. Now it's losing it's value. Maybe it's a good buying opportunity !
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According to my analysis, I don't think that the price will go up without new uses cases added for the token.
Very good and realistic analysis, Achim! I own a few Oneup myself and saw the price decline. Indeed: so far the token lacks use case apart from staking and liq pools. Maybe they come up with something clever in the future otherwise we will have the wait for the next wave of users…🤷🏼♂️
Regards and thanks for this nice video
Thomas
It's not that easy to come up with new use cases for tribe tokens. Oneup is not different from all the other tribe tokens in this respect and I believe it's pretty challenging for then to keep their token value up.
That’s true for sure. Creative ideas needed. 🤷🏼♂️
Actually, it's not that complicated to keep a low amount of tokens outside... You just don't print too much money... :)
Jokes aside, it's a kind of balancing things... For your example, inflation is over 70%, but maybe with 10-15% token wouldn't lose the value that fast... But, on the other side, it wouldn't be that interesting to curate (or earn) the tokens if rewards aren't high (which is also debatable as they just look high at the current moment, but after a week, they aren't)...
I suppose that balance between user growth, token inflation, and use cases is something that every token creator should work on continuously...
Regarding burning, you have mentioned my point of view already... lol... I'm more for using ALL available tokens and putting them to work in different places (use cases)... Like our posts should add value to HIVE, in the same way, every single token should add value to something...
Regarding staking... It's awesome to have a higher % of staked tokens in the ecosystem, but we all know what that means... more stakers, fewer rewards... If the token value doesn't follow the growth of staked tokens, it's just a matter of time when will all collapse... It's a good metric for the CURRENT health, but not that much for the future...
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thank you for sharing your insights. I'm still trying to get my head around these things.
Man that is a point that I have been thinking about quite a lot. So far everything in the crypto world is like huge inflation rate at the beginning until it drops to nothing. I think it would be quite interesting to have a stable inflation rate. In my opinion this would be much more sustainable. If you distribute tokens at a 20% APR rate throught all it's life cicle that could be interesting.
I have seen this a lot for many of the tribes that came out. It seems to die down a few months afterwards as the price starts going on a decline. I am kind of glad that I made the decision to start selling off some of my VIBES rewards to push for the starbit millionaire and it definitely paid off in the long run.
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I believe that the whole concept of tribes can't really work in the long run. Since tokens are printed on every block it's like diluting the value of the existing ones over time. This would only work if a big amount of people would flock into the tribe and buy the token. You did the good thing with Vibes ;-)
Your thoughts on why the token price might be low might be accurate but the math is pretty off. The DAO has been inactive for four months or so, hence the 6500 daily ONEUP are in fact 0. The total supply includes the pre-issued LP rewards, so they are not creating more total inflation, but increasing circulating supply over time (right now you counted them as the already existing circulating supply). The circulating supply also includes both our @oneup.reserve and @oneup.marketing. These will drip over time into the actual circulating supply and at a much lower rate than before.
The first year for ONEUP was designed to have a massive inflation as I expected 2022 to be the year of blockchain games and I anticipated a decent amount of growth. Apparently that is not the case and everything is going down, probably for years to come. HIVE loosing a lot of value hasn't really helped us much. Even worse for SPT and LEO which we shared a pool with for a while and which pulled us down massively, especially LEO. The intention was the opposite.
I am still wondering how to proceed with ONEUP, as it has zero investment capital. Lowering inflation much earlier than planned during this bear market might be a good choice. We should also consider changing the 50/50 payout to something like 25/75 in favor of content creators, who are usually the ones trying to grow their accounts further. Investors who only hold ONEUP to sell the yield would have less to dump on the market. The same is true for all founders and co-founders. But this could also potentially keep new investors from getting ONEUP in the first place.
The next development should be a proper frontend but the question is still how to finance that. I would finance that from my own pocket if this project would be only mine but it is not and I have seen zero interest from any of the other founders or co-founders to actually build something for the tribe (except for John and Blaine who build a bot to reward comments, which I stopped supporting after three months, due to lack of communication for possible improvements, which maybe was wrong of me to do but is a long story on its own and lead to much frustration in both them and myself - likely more in myself based on the reaction I received which was a HUGE demotivational factor for me for my entire work on HIVE and I am thinking about that every single day (!) ever since and it makes me sad).
Another thing I am considering is to offer a burn/swap for ONEUP into another token, which will be backed by revenue streams. Maybe getting CARTEL (which is not being sold officially anymore) for ONEUP, while half is being burned and half staked on @oneup-cartel for future curation. But this has to calculated very well to avoid any larger detriment for the Cartel.
Thanks a lot for your reply and for correcting my mistakes related to the DAO and the supply distribution. I really like the Oneup idea and the niche related to blockchain games. I've been curating posts since the beginning with the liotes @ourpick project.
I'm sad to see that you don't get the support from the other founders and I believe it must be pretty demotivating for you. In my video I tend to point out the negative aspects but there also some very positive ones:
I think the idea to reduce the supply would actually not only be beneficial for the overall tokenomics but it could give a signal to the market that Oneup will become rarer. This would give an edge to the people who have kept and staked the token and maybe generate demand on the market.
That was my main intention with the high inflation, to give everyone a chance to quickly catch up with the founders and co-founders. Looking at the richlist I believe this has indeed worked rather well.
Yes, we made ourselves quite a name, with many thanks to the Cartel and the @curation-cartel bot that is spreading the word wide and far every single day amongst 19 different tribes. This effort will only keep growing going forward. And the gaming niche will hopefully stay attractive for a long time and actually might see some light eventually.
And we will continue to grow that community with more and more ideas and developments. And with more partnerships to grow our expertise and range.
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Thanks for the great overview and for sharing your analysis. I loved how you mentioned that you liked to burn tokens at the end. hehe
I think you are doing a great job so far balancing things. There needs to be a transparent and healthy way to burn or use tokens in any project. I look forward to more videos like these.
:)
Yes I tend to want to burn tokens a lot (ask @ph1102 lol). I'm maybe a bit conservative in this respect but from an economical point of view I believe that if you provide more and more goods to a limited amount of consumers, the price of the goods will drop. I don't think that it's different for crypto even if these goods (tokens) can be used.
OneUp is a gaming-related token. Why can't I use it to buy Rising Star packs, for example, but I can use LEN tokens for example (great for you guys!)? USE CASES, that's what's needed. And of course, Rising Star is one example. Maybe they should set up their own shop too, with gaming assets. Something like you guys have tried, but if they have access to a good Hive developer, this can become much bigger.
I agree, the more use cases a token has, the more stable the demand will be. Speaking about the shop, we are a bit blocked on this level lol.
Thanks so much for the analysis. It's very detailed and I agree with your points! Interesting comments below too.
Thanks for the feed-back!
Interesting