I have a problem with yams

While I love the experimentation, meme based governance experiment, the good times etc.

Yams are a ponzi scheme, and not the good kind

1/

imo a ponzi scheme is a fraudulent endeavour that pays old investors with new investor money

I don't believe yams are fraudulent, but I do think they are a negative ponzi scheme

Many people think Eth and btc are a kind of ponzi game, where you need to buy before other people do

I dont think this is the same, as Eth and BTC both offer value propositions that make a credible claim on being a global money, something that does have value

Eth and btc aren't ponzis in the same way real estate or stocks arent ponzis. They have value whether it's as a home, rental income, dividends etc

Some people see the value earlier than others and make a profit

Yams however, are a ponzi.

They solely rely on new money coming in

yams have value because of governance rights over the treasury, and the treasury is populated by sales of 10% of the positive rebase when yams trade above $1, the only way yams trade above $1 is if someone is buying it, acting as cash flow for the treasury

In other words, the only way the treasury has cash flow is if new people are buying it, or whales who wish to accumulate more, either way, the business model of yams is new money has to come in to pay the existing holders with fresh income

To be fair we should look what potential value yams have as maybe its like eth or real estate that you both hope someone pays you more for it and it's actually valuable

To which I think there's not much there

The most redeeming quality is people seem to be having fun

If it's supposed to be like ampleforth and rebase as $1 and make a good unit of deferred payment, I contend it will never be money because the rebases make it unpalatable to hold long term as you're actually betting on the market cap

As a gov token, all the good ones like SNX, MKR, YFI all have some claim on durable cash flows, whereas the only claim on cashflow for yams is noobs buying in at more than $1

Unless the yams community is the greatest of all time and is worth such a premium, it doesnt make sense

Noobs literally wont know how any of this stuff works and will get roasted w/ a negative rebase when the new cash runs out

This is more complex than ICOs as at least utility tokens for cloud computing was straightforward

It took me a while to even figure out what this is

My concern with yams is it's being hyped as this fun governance project with real value when it's actually a ponzi scheme that will fleece noobs of their cash

The only person I see warning ppl about this stuff is... *checks notes* @DegenSpartan

Some people might say "relax bro, it's just memes" to which i'd say, make a harmless fun meme project that doesn't rely on scamming new users to sustain the system

all the hype and fun only goes to create a culture where people are even less aware of what is actually going on

I dont think the noobs are in on the joke

Im all for people consenting to engage in whatever crazy activity they want as long as it doesn't cause harm to others

yams would do better clearly stating it's a ponzi game and thus minimizing the harm caused by anyone being misled