Dynamic Anchor Earn Rate

Prop 20 - This is why I’m voting NO:

Certainly well intentioned and well thought out – but what we have here is a proposal from the Finance Department (if this were, to draw a parallel, a corporation - a startup thats grown up - or classic tech giant - doesn’t matter - the CFO typically acts the same, for such circumstances).

We are over budget! Cut cut cut!

But… the result is Anchor looses its identity, and its the beginning of the end of this venture.

Two things in particular I’ll highlight:

  • The community has been shown something – yes it was jump-started from a pile of money – but it is a model of what could be – what can be built and sustained – a decent yield at a predictable, dependable rate. Without the “20%” (or so) yield and the predicable rate – this is not an Anchor. It is just another DeFi option amongst a boundless sea that is being explored further everyday. It may stay relevant for a short while, but as yield dwindles, it shall become only a footnote in history.

  • Should the proposal prevail, there is no driver for individuals to control anything, they may ride it as it is, for a while, til it is no more —
    There are good ideas above to move toward solving this – and I’ve seen other ideas that put, if not the steering wheel, at least the stick shift in the hands of the participant/investor – incentives to invest more into the protocol as they can get more in return – some mentioned above, and this one too: [Proposal] Terralytics - Increase Borrow Demand via ANC Value Capture from Deposit Growth - #30 by Gnawkz

The community has a savior (LFG) - and its been giving a boost to buy more time to figure out how to build this out.
Lowing the output is waving the white flag - or as your CFO would say: we gotta make the numbers.

Let’s turn to the Product Teams instead-- you’ve got brand, you’ve got an audience, you’ve got members – what can be done to generate the income? What incentive models can be built for existing and new participants?
Just cutting the budget helps you live longer — at the right time - it helps survive the storm — but this it’s a storm – its just how markets work - there are bull times, there are bear times – this is not surrender time.

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