The returns on BR tokens, I don't quite get where they come from
When Bedrock had its issue, I initially treated it like just another security news piece. Then I came across a post about a user getting frozen out of twenty grand, which made me start digging into the tokenomics behind it.
There’s a total supply of 1 billion BR tokens. Staking BR can earn you rewards, and the returns come from the transaction fees generated by re-staking protocols. Sounds pretty reasonable, right? But I scoured the public info and couldn’t find the exact breakdown of those fees. How much goes to stakers? How much goes into the project’s pockets? How much is used for buybacks? It’s all vague.
I browsed through community forums and saw someone asking, "What’s the annualized return for staking BR?" The replies said, "It depends on the protocol's returns." Then they asked, "What are the protocol returns like?" No one replied. It’s not that they didn’t want to, it’s that it’s impossible to calculate. @Bedrock
The core value of a token is supported by its returns. The sources of those returns, the distribution ratios, and historical data are all opaque. How am I supposed to assess if this token is worth holding?
What concerns me even more is the staking lock-up period for BR. If you want to participate in staking, your tokens are locked for a while. During the lock-up, you can’t sell or transfer them; you just have to wait. If the market drops, you’re stuck. If the project has issues, you’re still stuck.
I asked a friend who’s done DeFi staking before, "Would you lock up BR?" He said, "Let’s figure out the returns first." The issue is, we can’t figure them out.
There’s another aspect of the token economics that makes me uneasy. The team and investors hold more than half of the tokens, and they can also stake. Where do the staking rewards come from? They come from the protocol's transaction fees. Where do those fees come from? They come from the assets deposited by users. Users bear the risk while the project team and investors enjoy the rewards. This structure seems off.
Someone replied to me, "Just don’t stake, then." Fair point. But if you don’t stake, what’s the point of holding BR? Waiting for unlock to dump it? Waiting for a pump to sell? If a token only has the use case of "lock it up to wait for dividends," then its liquidity is a joke. $BR
I can understand security incidents as technical flaws. But with the token economics designed this way, I really don’t get where BR’s value lies.
#bedrock $BR
When Bedrock had its issue, I initially treated it like just another security news piece. Then I came across a post about a user getting frozen out of twenty grand, which made me start digging into the tokenomics behind it.
There’s a total supply of 1 billion BR tokens. Staking BR can earn you rewards, and the returns come from the transaction fees generated by re-staking protocols. Sounds pretty reasonable, right? But I scoured the public info and couldn’t find the exact breakdown of those fees. How much goes to stakers? How much goes into the project’s pockets? How much is used for buybacks? It’s all vague.
I browsed through community forums and saw someone asking, "What’s the annualized return for staking BR?" The replies said, "It depends on the protocol's returns." Then they asked, "What are the protocol returns like?" No one replied. It’s not that they didn’t want to, it’s that it’s impossible to calculate. @Bedrock
The core value of a token is supported by its returns. The sources of those returns, the distribution ratios, and historical data are all opaque. How am I supposed to assess if this token is worth holding?
What concerns me even more is the staking lock-up period for BR. If you want to participate in staking, your tokens are locked for a while. During the lock-up, you can’t sell or transfer them; you just have to wait. If the market drops, you’re stuck. If the project has issues, you’re still stuck.
I asked a friend who’s done DeFi staking before, "Would you lock up BR?" He said, "Let’s figure out the returns first." The issue is, we can’t figure them out.
There’s another aspect of the token economics that makes me uneasy. The team and investors hold more than half of the tokens, and they can also stake. Where do the staking rewards come from? They come from the protocol's transaction fees. Where do those fees come from? They come from the assets deposited by users. Users bear the risk while the project team and investors enjoy the rewards. This structure seems off.
Someone replied to me, "Just don’t stake, then." Fair point. But if you don’t stake, what’s the point of holding BR? Waiting for unlock to dump it? Waiting for a pump to sell? If a token only has the use case of "lock it up to wait for dividends," then its liquidity is a joke. $BR
I can understand security incidents as technical flaws. But with the token economics designed this way, I really don’t get where BR’s value lies.
#bedrock $BR