Dear Oraichain community,
Since we launched Oraichain, one of the pillars that has driven our decisions is to have the best interests of our community and investors in mind. I would like to reassure you that the core team and I will always listen to the valid concerns from our community.
Launching an ambitious project at scale requires the right balance of focus, being dynamic and setting high standards in execution. Sometimes, you have tradeoffs that need to be adjusted and corrective measures taken to ensure the company remains healthy and sustainable.
We have been listening to our community and the two main concerns raised are:
1) Locked rewards distribution could cause supply shocks if not released gradually and over time
2) Circulating supply of ORAI tokens is small compared to the total supply
We have been meticulous in our approach and considered thoroughly the solutions to mitigate potential issues with the above-mentioned points. I would like to inform our community that we are focused on a solution that protects our early supporters and current investors.
Our priority is for continuous growth that’s healthy for Oraichain and are currently evaluating all variables, making this priority by looking at the economic models to ensure the best possible outcome.
In order to remediate potential issues with point 1) “Locked rewards distribution could cause supply shocks if not released gradually and over time”: we are going to revert back to the initial plan (releasing locked tokens after the vaults end in February 2021). Releasing the tokens before the vaults end would also mean that the newly released locked tokens would be available to enter the ORAI vault again, which would create a conflicting scenario. We won’t release all tokens in one go, as this would also create a supply shock.
Instead, we will release all the currently locked tokens gradually starting in February and up until June 2021 (% monthly/weekly to be confirmed).
In order to remediate point 2) “Circulating supply of ORAI tokens is small compared to the total supply”, we have shown our community that we are not afraid to pivot our plans for the interests of our investors and Oraichain. We had previously updated our initial tokenomics and released our New Tokenomics (v2) which had a positive impact and was well received by our investors. Therefore, I would like to confirm we are working on our final tokenomics which would reduce our total supply via a sizable token burn whilst severely flattening the token release curve (and possibly additional surprises).
No further details can be disclosed yet, however we expect to finalize the plans and update our community before the end of this year. As always our community and investors are priority and we will provide updates as soon as possible.
Dr. Chung Dao
CEO at Oraichain