$DEGEN

1/3 Hey Degens! We’ve just released the Degen Vault! Lock your tokens now to receive a tip allowance starting July 11th, UTC. https://www.degen.tips/airdrop2/current

Ch-ch-ch-ch-changes

Will dig into the code tomorrow 🫡

Dad, dev • @dune.eth wizard •  I'm just zis guy, you know?

Degen

Someone confirm my suspicions here for how degen whales will crush minnows.

Whales can put in millions of degen and even if they have a cap of 10k allowance their “overstaking” will make small accounts have less allowance than they would otherwise.

Simplified example: say 1000 minnows stake 10 degen, and 10 degen whales stake 1000 and allowance is capped at 10k.

20,000 total
1% = 200
Whales are "overstaking" by 800 (80%!)
10 degen investment is 0.05%
Whales get 10k allowance
Minnows get 5 allowance

If the whales staked 150 instead of 1000:

11,500 total
1% = 115
Whales are still overstaking by 35 (still ~30%)
10 degen investment is 0.087%
Whales get 10k allowance
Minnows get 87 allowance

People are being encouraged to stake a lot, and all the whales overstaking will drastically reduce the allowance for everyone else. But since there's a lock for 3 months, overstaking can't even really be fixed, nor will some whales care that they are overstaking and hurting all the minnows.

Is this how it works?

Me too!
https://warpcast.com/bluecockatoo/0x643a685d