Why is YAM said to be a Satoshi Nakamoto scheme?
Editor's Note: This article comes fromCrypto Valley Live (ID: cryptovalley)Editor's Note: This article comes from
Crypto Valley Live (ID: cryptovalley)
Crypto Valley Live (ID: cryptovalley)", Author: Hasu, translation: lily, reprinted by Odaily with authorization."These days, YAM has me jaw-dropping. Why does everyone care so much about it?
YAM as
Experiments with Fair Mining, Governance, and Elastic Quantities
Launched, requiring investors to lock up capital in staking pools to earn tokens, with most tokens issued within the first 30 days. They did lock in capital -- in fact, pouring in at an unprecedented rate. In the first 24 hours, 600 million US dollars of different DeFi tokens were staked, which is jaw-dropping. Although these contracts have never been formally audited, it took only 10 days for the small team to sprint the entire contract. System hacking.
Immediately after these events, there was talk of forking the system and migrating existing holders to version 2, which now appears to be indeed happening. Clearly, YAM managed to get users to care about the project, which is an incredible feat.
fair start
secondary title"no free lunch"fair start
I think the first aspect of YAM's success is how it does a fair start that has been popularized by Bitcoin. The main properties of a fair launch are
no free lunch
, which means that everyone has the same opportunity to obtain tokens. The only surefire way is to get everyone to work on it, and make that effort prove costly.
There are many technical and economic reasons to prefer PoW, but the psychological factors are still not fully accounted for. The more time and resources people put into something, the more value they place on it. Perhaps this is the sunk cost fallacy in crypto.
As if to drive home the point, the community quickly raised $115,000 to fund the second version of the protocol audit. Some might see this as throwing bad money after the aftermath, but in my opinion it shows that people are genuine about their YAMs.
secondary title"sell"Rebase mechanism
First, we need to distinguish YAM from tokens that have intrinsic value in the form of potential future cash flows or the ability of the governance to allocate such cash flows on their own. This applies to tokens like COMP, CRV or YFI when they
At the moment, it is rational for market participants to 1) price them and 2) mine through synthetic PoW, as long as the acquisition cost is lower than what they think is fair."elasticity"。"This is not the case for tokens such as YAM, BASED, and many other tokens that are currently auctioned. These tokens are not pseudo equity and have no cash flow requirements. Instead, they, like many other tokens before them, claim to be money(2)."
We can judge that YAM and its clones are not useful currencies by observing the characteristics of YAM and its clones, the most important of which is its
elasticity
At its core, YAM is an elastic supply currency that expands and contracts supply in response to market conditions, initially targeting $1/YAM."The founders, without saying so, hinted that the coin could be a stablecoin, but that couldn't be further from the truth. Coins with a rebase mechanism, such as Ampleforth or YAM, are exactly like Bitcoin, that is, completely unstable. They trade fluctuations in the number of tokens for fluctuations in token prices."For example, when the rebase coefficient of a coin is 10, a 10-yuan coin will be split into 10 1-yuan coins. In a rational market, the purchasing power of each account is the same, because they all retain the same share, but the value is different.
This method is not only compatible with the existing
There's no upside, and worse, people don't have any experience and mental models when dealing with a currency like this. So, if rebase doesn't help make a token profitable, why use this mechanism at all?
My theory is that parts of the market can't understand the simple concept of a rebase, just as Ampleforth grew to a market cap of almost $700 million based on a simple accounting hack and then fell just as quickly. Traders who understand this enjoy it until the supply of new money runs out, at which point they pull capital and crash prices.
This gives us a clear hint as to why other coins adopt rebase. It provides unsuspecting market participants with the bait needed to fuel token growth and ultimately provide exit liquidity for market insiders."secondary title"So what is YAM?
At this point you may have figured it out, I think YAM is a more tricky"Satoshi Nakamoto's plan". The term Satoshi Scheme was coined by Preston Byrne to describe a game in which early investors try to exploit late adopters, but its decentralized architecture sets it apart from traditional Ponzi and pyramid models.
Satoshi Nakamoto's plan
Note:
, which is well described in the bubble theory of money. The interesting question is: will this bubble eventually stabilize or burst?
(1) Technically, the required number of votes was reached, and then due to a rebase bug, the required number of votes was lost."cryptocurrency"and"(2) If the creator calls it"cryptocurrency
and
