• Proposals
  • KIP-9: Protocol Maturation and APY Alignment

This DAO has been horribly mismanaged since the beginning, with psychological actions to keep people from selling like misleading infographics, distracting "news" stories and a slow eroding of the price which has done nothing but enrich the "Klima treasury". Unknown (9,9)ers and sophisticated traders have found suspicious ways to maximize profits off the back of Klima and it is not acknowledged or thoroughly investigated, which makes it look like Klima is condoning the behavior. The "bear" market can not explain the systematic way the Klima token price has been demolished via BCT manipulation and only people with true knowledge of carbon markets and the tokenomics of BCT are able to pull this off, which makes it more suspicious.

Their answer is to throw the APY off of a cliff to 8000% as if to tell the public that it is the APY's fault, so they must punish the Klima investors. These actions would not look good to any real investor, regulatory body, or any official government who would want to partner Carbon credits, with this blockchain technology.
So yes, lets fix the APY and ignore the gross manipulation of Klima that has been tolerated by the team.

    Mike_Fast you mention the 480mil on Dune, but why are the rest omitted?
    Team: 330m pKLIMA, and 7.8% supply share
    Project Stakeholders: 70m pKLIMA, and 3.5% supply share
    Advisors: 50m pKLIMA, and 1% supply share
    OlympusDAO: 70m pKLIMA, and 3.5% supply share

    obsidianpassion Completely untrue to the point of being malicious towards the KlimaDAO team and investors. The team cannot manipulate the markets and their actions or opinions cannot change the market sentiment. It's pretty obvious that you are trying to spread misinformation. Go ahead and provide some objective proof of the claims in the statement I'm replying to, otherwise please go spread misinformation elsewhere. The KlimaDAO team cares deeply about Klima investors and will continue to spread positive vibes while building revolutionary technology for years to come.

    Mike_Fast
    Thank you I will read the documents.

    You haven’t explained why this information of falling off a cliff was not included in the published infographic so that investors were fully informed? You seem to have indicated that this was known about and discussed amongst the inner circle for some time and maybe even back to KIP-3 times. This is not a minor tweak of little significance, it is a major unforeseen and undisclosed change.

    You mention the informal AMA and drumming up interest. So how many investors tuned in and how many investors are there in KLIMA?

    The following question remains unanswered and I cannot find this information in my searching.

    If this goes to a snapshot vote where can I see the rules that govern how this is conducted ie are they weighted votes depending on amount of KLIMA held or is it by simple wallet count or other? What majority is required to be reached to be successful etc?

    Why is this most important information not included in the “Proposals rules and guidelines” I would have thought that this is absolutely central to the fair running of any poll but it is once again another hidden fact.

    TRANSPARENCY is crucial and absolutely integral to the successful running of a DAO but this has not been happening.

    I do not have time to calculate the figures properly but I suppose we print over 20 000 klima each day. To keep rfv value 5 Bct / klima we should take in over 100 000 Bct every day. It seems that this is currently not happening. So we are inflating too fast so APY reduction is needed to keep price premium and rfv more stable. I Support it.

    Leveraged liquidations have slaughtered DAO prices.
    Lowering the APY again this quickly is going to lead to much MORE leverage.

    I can't be the only one that sees it.

    I get that whales want to preserve their voting power, especially with prices falling and big entry positions being that much cheaper but driving holders to lever up to try to make up losses almost feels predatory.

    I'm just a tiny minnow so it's no biggie to me but everyone really needs to think this through instead of assuming the APY is the cause of the price action.

    Looks more like whales dumping and wiping out levered positions has had much much much bigger impact.

      coingecko based on timeline of the current proposal and snapshot, the reduction will start nudging and only complete by early February.

      TheKnownUnknowns Please kindly elaborate on your thoughts around the correlation between lowering APY and leverage

      TheKnownUnknowns Lowering the APY again this quickly is going to lead to much MORE leverage.

      Car54 I believe what he means is that reduction in Annual Percentage Yield (APY) terms is a yield projection based on 1 year. Practically, the returns you realize are relatively short-term (measured based on daily or weekly ROI). This is why the following ROI expectations were included in the original proposal.

      A 0.35% Daily Reduction.
      A 1.87% Weekly Reduction.
      13 more days to double your sKLIMA balance.

      Sirob So basically as a user, you'd always weigh whether market buy or bonding gives you the highest return

      So based on @optima example - say now 5-day rebase yield is 8%, and for bonding to make sense for you, you require at least a 5% ROI on your bond so that you net higher returns when you adopt the 4,4 strategy as compared to a regular market buy and stake strategy. And you check this with the bonding calculator.

      Now when we reduce our staking APY such that 5-day rebase yield is 6%, this will increase demand for bonds. This increase in demand pushes bond price up to a new equilibrium, where the ROI of bonding is reduced to 4% but profitable enough for an actor to continue to 4,4. As a result of the decrease in bond discount, all else equal, the protocol now effectively pays less for the same assets it buys. As for stakers, they still get the same rewards but 13 days later (based on proposal). In other words, lowering the APY allows the protocol to incentivize less per bond it sells and the Klima treasury takes in more RFV per bond.

        khyezr Thanks. I did actually manage to figure this out, but yours is a great explanation.

        so you decided to kill it after all, huh? wel... whatever. was good while it lasted. when is it due so I know when the big dump is coming? see you at $10 (max)

          AussieWayne

          You mention the informal AMA and drumming up interest. So how many investors tuned in and how many investors are there in KLIMA?

          From what I remember, between 2-300. It was posted ahead of the AMA happening in the #policy channel were all such announcements are posted. It was also pinned in the Telegrams, and pushed for in the general and trading channels fwiw. The amount of engagement a DAO member shows means benefits in being in the loop, and the recording was out almost instantly, while the rough transcript dragged out for half a day because I had previous commitments - I am sorry about this.

          The following question remains unanswered and I cannot find this information in my searching.

          You are right in that there's been a lack of updated info about the governance process and the state and idea of ongoing decentralization. Some people in the contributor server felt the same way last week, which lead to this being put together. The DAO is what we make it - and if you don't have the time, don't feel you have the skills, or for other reasons don't feel you'd want to drive your suggestions/feedback, please make sure do drop them in the #feedback-suggestions channel - it's vital, because otherwise ideas and betterments might get lost in the noise of the other more general discord channels!
          Anyway, here's the resulting doc. Suggestions for improvements for wordings or content that might be missing are highly welcome, maybe in the #governance or the #suggestions chan 🙂
          https://docs.klimadao.finance/tokenomics-and-mechanisms/governance-framework

          Posting the 'get involved' info for posterity here, as it touches on the discussion here

          We know many of you have been itching to get into the KlimaDAO Contributor Server to get more involved, and the time has come!

          Are you interested in contributing to KlimaDAO?

          If you're interested in supporting the vision of KlimaDAO and building with us, then join the server below and fill out an application! The contributor server is now open for all Klimates to work together in meaningful ways.

          We are aware that this will start a massive backlog of applicants, which we will work through as quickly as possible, so please give us time!

          :klimadao: :klimadao: :klimadao:

          Some high-priority applicants we are looking for, but not limited to:

          -Creative (UI/UX designer)
          -Engineering (Backend Developer/Rust and Solidity experience)

          https://discord.com/channels/841390338324824096/841613715382992906/933751051381768232

            shootmezoo The vote is still ongoing, and it looks like the option that ensure a long life is leading thus far. But it might be that the 'kill it' option with unsustainable APY wins out in the end, depending on how things end.

              So, right now there is a 97% drop in KLIMA asset price. No new investors want to get exposure to KLIMA the asset, and we're proposing to again make another reason for new investors to not purchase KLIMA? On what planet are we living? I get the long term thinking but Jesus. This protocol is going to die a slow death if the community doesn't wake up to the fact that you must have new investors buy and stake for the economics to function properly!

              NaPalm This is absurd. There will be literally ZERO reason for anyone to purchase KLIMA if this passes. This will kill the project. If no one wants KLIMA, then KLIMA doesn't exist.

              Mike_Fast
              How is keeping the apy where it is, "killing it"? So, why was the protocol built this way from inception is keeping it the way it is kills it? Is the team smoking drugs? This is now the second proposal to reduce APY after a 98% decline in price? How and in what world do you believe reducing apy saves this project? Who and with what motive would ever want to purchase and stake KLIMA? No one! It would make literally no sense to take that risk to earn 7000% APY with what appears to be another 98% drop in price!

              Archimedes

              WITHOUT NEW BUYERS AND STAKERS, KLIMA RETAINS ZERO VALUE! What do you people not understand about this simple fact. It doesn't matter what is in your treasury. The economics you've inherited from OHM depend on new participants!

              I am going to personally sue you outside of a class action suit against the team and report you as the sole conspirator in a conspiracy to steal and misappropriate investor funds. You deserve criminal punishment.