Last week you initiated an update of the SHAKE token (https://snapshot.org/#/spaceswap/proposal/0xb0608ce4cd79835ea72352c09e0f58eb54094edbe63aee03000519977dee414d)
As we promised before, all community proposals that receive a response will be considered in detail by the team for possible implementation and based on the results, we will be issuing comments and announcements.
Let us provide a commentary on this proposal.
A.) “Utilize a Price Oracle with the Shake Blender tool on spaceswap.app to determine the price of SHAKE minting dynamically based on the UNISWAP SHAKE-MILK2 Pool. Discount 5% (in the favor of SHAKE minter). This will ensure that minting is always affordable including gas fees and users will be incentivized to burn MILK2 tokens to generate SHAKE! Huge deflationary pressure will be created.”
We want to note that we consider the idea of correlating the price of SHAKE minted using the Blender feature with the market price to be great and worthy of implementation. Moreover, we see how we could do this using the Shadow technology. Since this is a hybrid system that brings complex calculations to the back-end, from a business point of view, requesting data in this way would be cheaper for the system and faster than requests from an on-chain oracle.
It should be noted however that in order to calculate the most optimal proportion relative to the market price, we will need some time, since careless calculation can lead to an instant excess of SHAKE tokens in the market, which will negatively affect its price and deprive it of its “gold” status.
B.) “For SHAKE to actually be $MILK2 gold, it must have a utility which gives it value. Therefore 1 SHAKE will hold a value of 10,000:1, as it did for the launch of Spaceswap.app and anywhere you can use MILK2 in the Spaceswap.app DEFI products OTHER THAN Interstellar farming (so for SpaceLend, SpaceSwap Starter, Booster, DAO voting, etc.) the token can be used as a 10,000:1 token alternative to $MILK2. This expanded utility will keep the floor price relatively pegged to the value of 10,000 MILK2 as it was meant to be”.
This paragraph was noted by the team. However, if implemented (full or partial), it will require serious revision to any of the existing smart contracts. Besides, it can have a significant influence over the use of MILK2 tokens. Therefore, the implementation would require serious resources and preliminary verification using mathematical models. At the moment, we cannot answer 100% positively about the application of this initiative.
C.) “This proposal makes NO change in the amount of MILK2 or SHAKE tokens available or max supply.”
Any changes listed above, if applied, will not lead to a change in the max supply, unless such an initiative is discussed separately and supported by the community members and the team.
We will be providing more updates on this initiative.
Thank you all for being involved! Synergy of the team and community are the key to moving forward!