0/ Crazy idea

Liquidity mining - at least in its current form - is counter productive

Teams should release 50%+ of their tokens on the market at launch

A thread

1/ One of the most important features of a community is that random community members need to get rich

That means that they need to have a chance to buy the token at a reasonable price

2/ Probably the best examples of this are @chainlink @AaveAave @synthetix_io

During the 2018 bear market, all of their tokens got absolutely rekt

But remember, on every trade, there is a seller *and a buyer*

3/ So that means that some people were accumulating those assets at super low prices

4/ Conversely, let's consider @compoundfinance and @CurveFinance

Both of these protocols - through no fault of their own - opened at insane fully diluted valuations

The only people who got rich are insiders: founders, employees, and investors

5/ These teams are liquidity mining every day

And those miners are overwhelmingly selling

So the price can is likely to move down

And this means that the buyers of these tokens - the people hoping to get rich - are going to lose most of their money

6/ What can these teams do about it?

I think the right answer is to dramatically accelerate vesting / liquidity mining

You need to *force* all the weak hands out. Make them sell

And create a real opportunity for the strong hands to accumulate

7/ It's painful in the short run, but I think ultimately the right thing to do

8/ The other thing to consider is governance

Compound and Curve are just slowly accumulating on major CEXs. Every day liquidity miners are sending their tokens there

Obviously that's not good for governance

9/ DEXs may help this problem, but I'm skeptical

Users who deposit COMP, CRV etc in a DEX smart contract for layer 2 trading are precisely the kinds of users who don't care about governance

10/ Obviously my proposal here is pretty risky

Curious for community feedback!

{fin}