I’m not even a holder of ANC, I only hodl aUST, but it’s worrying to me that the ANC marketcap is just 600M, which is kind of absolutely ridiculous considering the TVL is around 19B as of this moment. This gives us around 3 or 4% MC/TVL ratio, while some other protocols have this ratio in hundreds of percents.
Doesn’t this open room for potential attacks either by some whale to propose some change and having it voted yes, or potential vote attack using flash loans?
What can be done? Maybe the core issue is the tokenomics of ANC that needs to be reworked swiftly, so that it motivates holding. Look at CRV and CVX.
EDIT: Actually, this situation is so weird that it makes me consider getting some ANC for the sake of securing Anchor long-term. Everyone’s either sleeping on it, or I’m deluded, but something has to happen abruptly.
Does ANC matter? It has the appearance of a governance token, but significant proposals that rub the core team the wrong way would likely not be allowed to pass. (What has passed has their blessing or doesn’t matter). It seems more like a coin created to give out for free to jump-start Anchor: for people taking loans to sell to offset their interest payments?
It feels like most people will accept as much interest as they can in UST… but aren’t concerned with holding ANC to help steer the project. Or at least ANC’s price doesn’t indicate a strong interest.
Very good point! Are you able to expand on how the core team might block things? I think this point is quite interesting as TFL keeps using the lack of decentralization as an argument against other stablecoins, while the project might be centralized in a hidden way.
Like if I put a proposal with a GitHub PR and anough people vote for it, would the core team have a way to stop this?