Monetary Policy Proposal #2 Rationale from Stablecoin Labs (Asfi)

We propose 8% APR for 120 day lock-up


  • ECO price has been up 0.9% since the last 14 days
  • Users have complained that 30 days is too short in light of Ether gas fees
  • For increasing lock-up by 4x, I propose we increase APR by 3% points

I symphathize with the 30 days being too short given gas fees. But @benjaminrhoffman’s point about value transfer from people “ready to transact” to people “commiting to not transact” sic remains. How do we make tradeoffs between value stabilization and velocity / usefulness of money? Open question.

Purely a judgment call. Mine says for a currency in its infancy like Eco, the most important trait will be people’s willingness to hold it. Existing users / early adopters are sensitive to gas fees, I’ve voted to address their concerns first.

Id love to discuss if Eco app users can already spend Eco the token for spending or not and what that looks like under the hood. My sense is the link between eco points and Eco the token on Ethereum doesn’t exist yet so it’s not clear to me who (if anyone) uses Eco the currency for spending.

The other limiter is the present dashboard. We see on it top 1000 holders but 7 of those holders are contract accounts or eco association. My rough calcs say the biggest eco holder only has $10k of value in Eco. That tells me this aspiring currency is way too early to be optimizing for velocity.

Would love to hear your thoughts on the same.