I don’t know if this is helpful but I would like to just say this: the LQ airdrop was highly successful and brought the entire community together (which I saw up close) as well as effectively marketing the token. If it is possible, I would suggest Indigo simply repeat as many features of their method as close as possible.
As they say, if it aint broke …
Edit: Having been in the forums a long time in LQ and seeing the airdrop happen, it appeared clear to me that the people who had been part of LQ for a very long time since the beginning tended to be the type to understand the value of the token and held for a longer period of time, hence the price action.
There were ofc retail who cashed out not long after launch, I very much suspect they were mainly the newer members. But it appears that the cuttoff date Liqwid implimented ensured that these numbers of people did not outweight people who were likely to hold/utilize the token.
I think this is key to Indigo’s success also. Airdropping to new members is good as it does build popularity and hype, but perhaps also a weighting towards older users will result in more hodl.
For projects in early stages, the incentive to hold can be as simple as a solid roadmap and anticipation of those upcoming events (e.g., LQ holders waiting for mainnet and additional rewards). For established projects, this is all about utility and user growth. In the case of Indigo, I personally don’t see a reason for a vesting schedule, especially when the TGE is occurring simultaneously with mainnet launch (a vesting schedule would also require far more effort for the devs). There will be rewards for using the protocol from day 1 or close to it, which should be enough incentive to hold. At the end of the day, if the devs and community create value for holders, the token value will take care of itself. I don’t see why we need to artificially prop it up with vesting schedules, taxes, etc.
Yes, I agree. When I was in the LQ twitter space I noticed people were saying they were holding LQ for life and considered it generational wealth. It definitely inspired community and camaraderie among the holders and created an emotional attachment to the LQ protocol. This is what I can see as a positive happening for INDY because I feel the same way.
It’s a problem because it could threaten the whole protocol and put in jeopardy. People who would mostly likely benefit will not be able to, because people are selling off and not considering the long-time vision. The Indigo protocol has to have people participating in it such as staking, providing liquidity, loaning and borrowing and providing collateral. The whole overall objective is to give opportunities to people who are in countries who want to invest but have barriers in doing so. Not everyone has access to a Coinbase or robin hood
to look at the last important airdrop happened on cardano , Liqwid had barely dump. I think the persons who receive the airdrop have really apreciated it and are impatient to use their LQ. People do not want to dump when they know more value will be added. Itwill be the same for INDY.
I think a vesting schedule would help. But wouldn’t it matter how many tokens people are actually able to get if selected . I think we need to know how many are selected for the airdrop then the team/community can decide rate of allocation if any is to be proposed
Perhaps a potential solution would be something similar to what Minswap did. Have a certain number of Indigo tokens distibuted, but 1/2, 3/5ths or 2/3rds of the quantity in a Indigo LP token so to speak.
In this case, the Indigo LP token would require you to provide liquidity in a pool for a specific time period to get back that quantity in the primary indigo Token, and perhaps a few more for staking in the pool.
This would encourage people to hold because:
The airdrop recipient would have a certain percentage of their total coins unavailable for cashing out (Indigo LP) until they complete the vesting schedule. So they wouldn’t get full value for dumping the tokens on exchanges early.
It would reward those who opt to wait and stick with Indigo with a few extra tokens as listed above, and grant a certain level of liquidity to Indigo.
Anyway, I’m sure some might not like the idea. I’m just throwing it out there.
Good idea.
Other project usually use ‘staking’ support method to encouraging hodl, however it makes whale get more portion.
Your idea is more fair way than staking method.
I understand what you say but I believe a lot of firm Indy believers will hold on to their tokens. And if they want to sell then let the market decide… new buyers will join the Indy family then!
I know many are contemplating mechanical mechanisms to prevent selling pressures at launch.
I agree vesting periods, LPs, etc… all have strong merits.
I would however like to suggest a slightly different tactic. The introduction of a educational curriculum. To be eligible for the airdrop you have to pass a quiz/ quizzes.
If airdrop recipients truly understand the value and power of Indigo I propose they will be less likely to sell.
Education can be a much more powerful tool for long term value creation. Mechanistic approaches such as locking periods for general users just predetermines a future sell date. This also introduces incentives for whales and big money to FUD the project leading up to lock expirations.
So how would education and simple quizzes create longer lasting value for the protocol? For this I suggest a simple thought experiment.
Let’s say we have a time machine and we can travel back to the launch of Amazon, Microsoft, or Google. At the beginning many didn’t understand and couldn’t see the long term vision of these projects.
What would allow you to have the mental fortitude to stay with any of these projects long term? What would help you become the next Bill Gates or Jeff Bezos of the Indigo protocol?
For future value to be understood people need to see the long term vision and countless possibilities for success. Once realized they won’t sell unless they have to. Education is the way to show people the incredible opportunity that is in front of them.
I hope this can open up a dialog within the community. I am curious to hear everyones thoughts. Am I being too naive?