Nick Forster, co -founder of Onchain Options Excination, suggested that the original code supply of the platform, DRV, suggest 50 % to support the growth of the ecological system and accelerate deals with institutional partners. The proposal, published yesterday, calls for 500 million new DRV codes.
Forster stated that the distinctive symbols that are inhabited will be transferred to the DERIVE Foundation (formerly Lyra). Under the proposal, current investors will face a maximum reduction of 8.25 % annually over a period of four years.
Forster stated that Derive has already obtained a “major partnership to provide liquidity and institutional detention services”, and that advanced discussions are underway with pioneering liquidity service providers and traders in this industry. However, the name of the partnership institution has not been revealed.
Under the proposal, 46 % of the newly distinguished symbols will be allocated to the basic team, which has been largely completed. This aims to ensure that the team members remain on the platform. These symbols will end over a period of four years and can only be sold when the market value of DRV exceeds $ 150 million. According to Coingecko data, the current market value of DRV is $ 28.5 million.
It was previously known that DERIVE had pledged not to print any new symbols. In converting from lyra to DRV, the total supply is kept fixed at a billion symbols.
Forster argued that increasing the supply of the distinctive symbol was necessary to compete with Deribit, the leader of the recently obtained options market by Coinbase in a $ 2.9 billion deal.
DERIVE has also announced that it has separated from ways with some team members and investors who previously supported its integration with Synthetix. This merger plan was canceled in May after investors criticized the options platform to reduce value.
*This is not an investment advice.