Liquidity Mining Update
- The Nodeseeds Liquidity Mining program has been passing out NDS tokens like hotcakes.
- Good for LPs, bad for decentralization. We’re finding middle ground.
- 15K NDS tokens remain for the Liquidity Mining Program for a remaining 1.4 years instead of 0.4 years.
- 10K NDS tokens 100% for the community, but up for debate on how we structure their emission.
To kick things off, the Nodeseeds team would like to thank the community for participating in the stunningly successful Nodeseeds Liquidity Mining program. So far, the program has paid out over 9992.94 NDS tokens, representing a significant injection of tokens into the open market. As we continue to blaze a trail towards democratizing DeFi seed round investments, we learn more and more about how to best approach the highly nuanced and diverse incentives found both within the Nodeseeds ecosystem and beyond.
With this in mind, we’ve decided to make a few changes to the existing program’s framework to better facilitate long-term sustainability for the community, investors, and the NDS token distribution topography. At present, a proportionally small number of dedicated participants have acquired a healthy number of NDS tokens via the program. While we love to reward our dedicated NDS token holders and investors, the rate of NDS token distribution from the program risks higher levels of token centralization than the wider community and ourselves find sufficiently decentralized.
10k NDS tokens have been already been distributed to liquidity providers.
Showing The Love
So, where do we stand, and what will change? The initial plan was to distribute 15% of the total NDS token supply via the program, representing 15k NDS tokens, to NDS/ETH LP token holders via a decreasing yield curve that lasts 12 months. Once this period lapsed, we planned to continue the program with an additional 10k NDS tokens, representing 10% of the total NDS supply, over another 24 months. This two-stage liquidity mining program represents 25% of all NDS tokens in existence — much more than a healthy amount for any project.
This information helps to contextualize the challenge we currently face. While Nodeseeds has so far proven immensely successful in both portfolio performance and wider adoption of the NDS token to gain access to DeFi seed rounds, the topographical distribution of NDS tokens remains less decentralized than the team or community would ultimately prefer. Those who experience the power of the Nodeseeds value proposition firsthand clearly signal that they want more NDS tokens.
However, sticking out from the crowd remains challenging for any community, and we’ve yet to hit terminal velocity in terms of wider industry recognition. Most projects allocate between 5% and 10% to liquidity mining. The comparatively large allocation of NDS tokens to the liquidity mining program demonstrates the deep commitment of the Nodeseeds team and community to the ethos of democratization and decentralization. Rome wasn’t built in a day, and the Nodeseeds team and community continue to evangelize the long-term ethos and value we bring to the industry.
Keeping the Ethos
To better account for the overall sustainability of the liquidity mining program and the decentralization of the NDS token topography, we’ll be slightly augmenting the liquidity mining program schedule. We plan to stick to the initial 15k NDS token distribution schedule, but this amount will now be distributed over a total 24-month liquidity mining program. We’re proud to say that so far, we’ve distributed 9992.94 NDS tokens over the last seven months, leaving a total of 5007.06 tokens for the remaining 17 months of the liquidity mining program.
The remaining 10k NDS tokens remain locked for six months and are 100% dedicated to the community. The Nodeseeds team and community members are actively exploring novel ways to distribute these tokens to the community sustainably. If you have any ideas or inspiration for unique approaches for getting these NDS tokens in the hands of the community, reach out! We deeply appreciate community involvement and highly value all contributions, suggestions, and constructive criticism.
We understand that changing any distribution schedule after its formation represents a less than optimal configuration. Nevertheless, we undertook these changes for the long-term health of the Nodeseeds ecosystem and to ensure an equitable distribution of NDS tokens. The sustainability of the ecosystem stands as the most important aspect of the project. Short–term gains feel great, but if they come at the expense of sustainability, then everyone ends up losing in the end.
For this reason, we deeply appreciate the community’s resounding internal support of this decision. We have talked with many of you, both publicly and one-on-one, and we’re confident that the supermajority of NDS token holders remain in accordance that this move is in the best interest of the long-term health of the ecosystem.
Staying the Course
The Nodeseeds ethos remains unchanged. As we continue to strive as a team and community to democratize the DeFi seed round investment process, we’ll continue to improve, grow, and foster a growing sense of inclusion and decentralization. This change represents a prescient step towards that goal. No strategy is perfect from the outset, and we sincerely appreciate the communities’ support for this decision. The ability to thoughtfully explore novel opportunities for further incentivizing NDS token holders outside the liquidity farming program ultimately serves as a net positive to the ecosystem.
As we find ourselves firmly in the throes of a historic crypto bull market, we continue to plan for the long term. Want to stay up to date with the latest and greatest developments happening at Nodeseeds? Check out our monthly investment reports for a snapshot of how we’re adding immense value for all NDS token holders. The future looks bright, and while we don’t have a crystal ball to tell the future with complete certainty, we’re willing to bet that the consistently expanding list of partnerships, investments, and growing list of community members bodes well for the success of the Nodeseeds ecosystem.