We’ve been clear that as a project POOCH is malleable. If something isn’t working we’re always ready to course-correct and move forward.
With the launch of our farms a few days ago we have had a great deal of success however that has also been met with a degree of disappointment from some community members in regards to rewards.
One point to address up-front is that POOCH is a deflationary token with a fixed supply. Many farms constantly mint new tokens to create the appearance of high returns by handing out rewards at ultra high-interest rates. This is a prime example of inflation, each token becomes less valuable in the long term.
POOCH has allocated 20% (200M) tokens of its total minted supply to farming rewards. Unlike many other farms, most of POOCH is already in circulation. The remaining 20% will not appreciably dilute token value with the planned long-term emission schedule in conjunction with the constant burning of tokens.
To date, there are already 1.22M tokens in the “Burn Pool” waiting to be burned. (Which is planned for this month but we are pacing our “newsworthy” events.)
Despite delivering approximately 10.1 Million POOCH to date via farming rewards some people perceive the current farms to be under performing.
There are two factors at play; the first is that people are not taking into consideration the concept of pool dilution.
When you join a farming pool the number of tokens you deposit (whether single-sided or LP) are represented as your “share” of the pool. As more tokens are staked the total shares increase.
Rewards in a farming pool are delivered by dividing the number of rewards per block by the number of “shares”. This means rewards are dilutive and shortly after a farm launches it can appear as though your rewards may be shrinking and to a certain extent that’s true. However one must keep in mind that everyone’s rewards are “shrinking” proportionally.
There is however a second big factor and that is the number of rewards per block is also divvied up amongst the pools with each pool receiving a weighted “multiplier”. In effect, the current 25 POOCH per block emitted via the farms is then split up amongst many pools.
The tricky bit comes in determining how those rewards are to be weighted per pool and which pools should even exist.
I believe our farms need to evolve into v2.0. The community has voted with their holdings, people seem to heavily favor the FTM/POOCH 180 Day pools and the single-sided POOCH 180-day pools.
As a result, we’re going to be releasing POOCH farm v2.0 this week reflecting the preferences of our community.
This is a relatively minor code update and is already mostly complete. We will be doing some rudimentary testing over the next day after which we will announce the v2.0 pool opening via Discord and Twitter.
The farming pools & weighting will be broken down as follows for the next 30 days.
At first glance, those numbers may make you question why the rewards are relatively high for single-day lockups. We seem to be missing out on building liquidity with the more risk-averse. We want to prop up the overall liquidity pools by enticing a reward opportunity for those who may be more inclined to participate in shorter-term farming.
We expect higher participation and thus more dilution in rewards with the “lower risk” 24 hours pools; necessitating a higher “pool allocation” to be shared with a wider user base.
You may be asking about what happens if you have tokens staked in the existing pool. We’ll be disabling the time locks to enable migration to the new farming pools.
Likewise “airdrop” rewards for holders that had been previously declared eligible shall be delivered in POOCH Farm v2.0. For US people that are eligible for the airdrop but can’t access the farms please reach out via email@example.com with your wallet information and we’ll get you sorted.
As usual, if you have questions not addressed by this post our team will be in Discord answering questions as much as time permits.