Should investor vesting be accelerated?

Nothing in this post or follow up discussions should be taken as financial advice or an endorsement of any token/asset.

Some of the DAO contributors were discussing tokenomics with a group of thought leaders and the idea of accelerating SAFT vesting (unlocking all investor’s tokens) came up. In theory, paper hands will sell while token price and liquidity is low (relative to historical data), leaving only the long term believers in the DAO. This could set the DAO up for long term success.

Original vesting breakdown can be found here. Simplified stats as of today (April 6, 2023)

Current circulating supply: 176,803,772
Investor SAFTs still vesting: 76,500,000
Circulating supply after acceleration: 253,303,772

Note: Current circulating supply is pulled from the API here and the logic behind calculations can be found here. The number will differ from original vesting breakdown due to DAO proposals that have passed for various items like liquidity mining. The logic is subject to change for improved accuracy as standard practices become more established.

Contributor, team, and advisor vesting should remain on the original 4 year schedule.

All Foundation SAFTs are on-chain within SPL Governance Voter Stake Registry plug-in and Realms. So accomplishing this task would take some development work and time. The goal of this post is to gather feedback (positive and negative) around this idea and determine if it’s worth putting into motion.

  • For: investor accelerated vesting
  • Against: investor accelerated vesting

0 voters

I think it’s a really interesting way to decrease token overhang from larger investors, while still keeping the team incentives aligned with the long term goals of the protocol.

Would be very interested to hear the PSY communities take on this as well as investors.

Seems interesting, I can see it going both ways. Are there any case studies of other DAOs doing the same to accelerate vesting and what were the impact of it?

1 Like

I think this idea is interesting. One side of me likes the idea of shaking out any weak hands and improving tokenomics but the other would like to hear how the DAO would combat a cascading effect if enough large holders were dump. Would be interesting to hear of any previous instances of accelerated vesting in the solana ecosystem and how the respective communities responded.

Hey - thanks for the feedback!

I completely agree with you. General feedback is that majority are for accelerated vesting, though we’re still gathering feedback from investors. Will update once we get their take on this.

Hi Validathor - thanks for your response!

I’m not aware of any specific case studies of DAOs accelerating SAFT vesting, but from a tokenomics perspective, it makes sense that the impact of it would be positive. Curious to know your thoughts on how it might play out.

Hi Dz94 - thanks for the feedback!

While a cascading effect is definitely a risk, one of the ways we would combat it is to involve the community in the education of this and explain the rationale behind the accelerated vesting, along with its risks and benefits.

This actually ties in with our rebrand from PsyOptions to PsyFi, as we’re committed to rebuilding open and transparent communication about our progress and goals.

Given the lack of opinions from large token holders, I’d say that this is a low conviction play with potential of heavy devwork required to unlock. I suggest that we KIV until sometime in the future when more conviction from token holders forms.