I have been invested with Anchor before I invested in Luna. Now that I hold a decent bag of Anchor, in last year plus my Investment value has diminished. Yesterday I was in the Anchor telegram room and I raised the following query…
Anchor is meant to be no 1 application in the Luna ecosystem which has created tremendous value for the entire ecosystem and is critical for its success. Now that the value of Luna is increasing how come Anchor has not created any $ value for its holders?
I was advised that the reason Anchor exists is to add to the value of Luna and increase UST adoption… The main use of Anchor is that it’s a governance token.
As a long-time investor in anchor, I question myself if I did make a mistake as my investment has seen no gains. I invest to make money. As Luna’s value has increased unfortunately as an Anchor shareholder I have not seen similar growth, on the contrary, I might have less $ value than when I started.
I am keen for the Anchor shareholders to consider how we can increase the value of Anchor in a similar way that Luna is getting more valuable.
The only way forward I see is it being $$ valuable is if we start a transaction cost on interactions with Anchor, be it saving, borrowing, or lending. I do not have a banking background but common sense tells me that there should be a joining fee and an exit fee. An example is if you add 100 $ in anchor saying then .50 % of total deposit to be subtracted from the interest return and on exit, a .50% subtracted as an exit feel making the total fee = 1%
Similar logic is applied to providing borrowing and lending as is happening with other Defi leading applications.
With the revenue generated .20 % could be used to burn Anchor .20 % reward Luna stakers and .45 % used to reward anchor stakers with Luna, Anchor, and UST rewards and .05 % in the Anchor community fund.
A similar logic applied to applications that build on Anchor and say 75% value comes to anchor and 25% goes to that application token in Luna, Anchor, UST rewards
Hoping the community would support this or a similar proposal to uplift the value of the Anchor token.
It’s a win-win for Anchor, Luna, and Applications who are building on top of Anchor.