
Insightful|Mar 26, 2025 15:03
Initially 1 Kaito Yap / 1000 vote power went for for ~2 OTC
This "baseline" of Kaito votes value was also the peak
The value of votes can only go down over time
Here is why:
1/ Past Demand
The initial demand for Kaito leaderboard spots was higher than ever
2/ Potential EV for leaderboard spots is unclear
Its currently unclear if it's +EV medium to long term for projects to spend marketing dollars to bribe for votes for a leaderboard spot
3/ Yaps/points/votes dilution
As more Yaps are distributed the value of Yaps and votes are naturally worth less as the total pool is now larger
Unless the "bid price" for a Yap/vote can progressively increase to meet this "inflation"
the ask/sell price for a yap/vote will naturally go down as seller compete for the most competitive price
4/ Currently a inefficient market
There is no automated or fast way to sell your voting power OTC currently
As a "whales market like" platforms start to emerge + the amount of yaps/votes for sale start to increase (especially for the top 100 accounts)
It will become more cost efficient for project to "bribe for votes" in large quantities at a bulk discount from larger accounts
opposed to paying a "premium" to pay for the same amount of votes cumulatively across multiple accounts
5/ What does mean going forward
Is voting power useless now?
Not exactly just instead of raw $ = vote power now its going to be up to projects to find creative user incentive benefits for voters
Ex have min X amount of voting power for our project or being in top X of all voters = some sort of internal ecosystem benefit which (ideally for the user) ties back into some form of monetary reward in the future
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