The WAVES ECOSYSTEM is facing a pivotal and controversial vote with the introduction of feature #23: Boost Block Reward Activation. If activated, for the following 300,000 blocks on Mainnet, the total block reward will be increased by a factor of 10. This will result in an additional approximately 18 million WAVES over the next seven months.
Is this beneficial? Let’s break it down:
Resolving the $XTN Token Issue: 20 WAVES from each block will be used to automatically buy the $XTN token, potentially resolving this problem in 3-4 months. This is a significant benefit for the ecosystem as it will help address the bad debts issue.
Funding for WAVES DAO Projects: Another 20 WAVES from each block will go to the WAVES DAO, providing necessary funding for projects like WavesDucks, UNITS.NETWORK, node development, and more.
Increased APY for Stakers: The remaining 20 WAVES will be distributed to you, significantly increasing the annual percentage yield (APY) for your stake.
Impact on WAVES Price: The effect on the WAVES price is uncertain. Historically, WAVES wasn’t an inflationary token, but when inflation was introduced in Semptember 2019, the price increased significantly. This indicates that inflation does not necessarily lead to a decrease in token value; it can sometimes have the opposite effect.
Currently, there is a TVL-campaign that can lock many WAVES in contracts. With the proposed high APYs, many users might buy WAVES to stake in various De-Fi projects or lease to nodes. This could really offset of the sell pressure.
However, it is also possible that increased sell pressure could lead to a price decline. Nonetheless, it is worth noting that much of the selling pressure has already been absorbed following the Binance delisting news. Prices have already dropped, so this might be an great opportunity to revitalize the WAVES ecosystem.
Final Thoughts: The decision is ultimately yours: take a risk with increased WAVES inflation, which could attract new participants to the ecosystem due to the high APY and help buy and burn all $XTN, or opt out and see what unfolds next.
As Sasha Ivanov stated:
“It runs for 6 months → we launch units at the same time (meaning there won’t be any better time for this) → all the bad ■■■■ already happened → we can decrease inflation to 0 should we want so later.”
So to vote you simply need to sign up by wallet with your $dodllnode and choose your option here:
