Dear Reef Community,
Our team was in Dubai for the past few days at the Global DeFi Congress, and we have many exciting, long-awaited updates to share. We value every single community member and his or her feedback and that is why we have created an update for our community. Besides this blog post, an in-depth discussion about the topics below will be discussed during the AMA session later today.
Reef Parachain Auction
Reef’s vision has always been to make DeFi easy and accessible to everyone. Unfortunately, there is a more significant issue standing in the way — scalability, or lack thereof. For many people, the fees of entering and exiting a DeFi position on Ethereum far outweigh any potential earnings.
To address this issue, we are doubling down on our Polkadot efforts. This year, our goal is to integrate with the existing ecosystems and contribute by building up our future infrastructure. We believe Polkadot and its Substrate stack offer the perfect opportunity for innovation, while the Parachain model opens up the level of interoperability and scalability never possible before.
We are currently working on a Reef blockchain as a building block for future DeFi and will participate in the early Polkadot parachain slot auctions. To improve the odds of a satisfactory outcome, we are building up our war chest.
About the recent events — an FAQ
Q. What has caused the increase in token supply?
A. Reef employs multiple third parties to provide symmetric liquidity to the REEF order books. Liquidity is necessary for the orderly functioning of the markets as it improves slippage and reduces bad actors’ ability to perform market manipulation. In the last month, we’ve seen multiple attempts by bots to obliterate the ask side of the book, thus depleting our liquidity reserves, which caused some emergency token releases.
When Parachain goes live, for taking such decisions in the future, we will have a DAO, and the community can vote for the decision.
Q. Will the total token supply of REEF change in the future?
A. The total token supply is capped to 20 billion until Reef becomes a parachain on Polkadot. Afterwards, it will have a mild inflation model for validator rewards.
Q. Will this affect the token release schedule?
A. Yes, The Reef TRE has been created on the assumption of linear growth. As is often the case in the real world, this assumption did not hold up. The Reef community has seen tremendous growth and extraordinary demand from investors in a very short amount of time. The high demand on liquidity coupled with the increased scope of the project requires a short-term TRE adjustment, however, we do think that the issuance will even out towards the original projection in the long term.
We plan on updating our community in the future around token release schedule changes ahead of time.
Reef is expanding
As part of our effort to onboard family offices and private funds into DeFi, we are expanding our team as well as a physical presence in Singapore and Dubai. We are currently hiring for a BD manager in Dubai and Sr. DevOps Engineer for those who are interested.
What’s next?
Reef Parachain Auction is now part of the roadmap, and a detailed update on the roadmap will be released by the end of this month. We are also planning a buyback/token burn shortly after the parachain auction.
Our community is most important to us, and we intend to communicate more frequently. That’s the reason why we started with the “Coffee with CEO” series.
To sum up, we are working on a great future for REEF together and we value every single voice in our community. That is why we are also posting a Reef Community Feedback form here, so that you can rest assured that your opinion matters and your concerns will be addressed.
As always, we are looking to grow the Reef family so if you are interested in becoming a contributor to Reef, please drop us a line at careers@reef.finance.
With much gratitude,
The Reef Team
