PolyCrystal Deflationary Roadmap 🗺
Hey Crystal Crew, we’ve heard your concerns about the inflationary aspects of PolyCrystal, and we have spent a lot of time deliberating on how to resolve them without negatively affecting the long term viability of our yield farm. Below is our game plan to put this strategy in action! 💎
No $CRYSTL Ball: A Little Background
$CRYSTL was designed to be a long-term yield generating asset (e.g., accumulating rewards in pools), not necessarily a speculative asset — but it seems it has become one in it’s short life cycle so far.
We opened the trading for $CRYSTL to start at $0.50, and we were just as surprised as everyone to see it reach the heights that it did. After this initial pullback, it was clear that some action needed to be taken to reconcile and start to put deflationary aspects in place.
The Game Plan: What to Expect
- Restructure Farm Multiplier to Reward $CRYSTL Holders
Starting June 30th 20:00 UTC, we will begin restructuring emission rates to reduce the multipliers for non-essential farms and increase the rewards on the CRYSTL pool and the CRYSTL-MATIC farm.
Some essential farms will be left untouched (such as $MATIC-TOKEN trading pairs that are key to the viability of ApeSwap’s DEX), but the majority of others will see reductions. We are mainly targeting the “unfavorable” TVL where farmers are simply staking and then selling off their $CRYSTL rewards.
After the updates to the existing farms have been made, we will add those multipliers to $CRYSTL holders and $CRYSTL-$MATIC stakers to further incentivize the Crystal Crew.
2. Reduce Emissions Per Block
Our second mechanism to slow emission rates will be by reducing the amount of $CRYSTL minted per block. On July 2nd 16:00 UTC, we will lower it to 3 $CRYSTL per block, and then revisit the effectiveness of this move to consider if further reductions are necessary. This is a pure deflationary play to start to trend towards a more manageable daily token issuance rate.
3. Vaults to Mitigate Impacts of #1 & #2
The impacts of #1 and #2 are inevitably going to decrease our APRs, which can impact one of our key metrics — our TVL. To mitigate the impacts of this, we are planning to open vaults, so that we can offer higher APYs to some farmers than they would get by manually compounding.
We expect these to be live in roughly three weeks and will provide updates as we have them.
Additionally, we plan to continue building features, launching pools, and adding partner farms that are in the best interest of $CRYSTL holders. We’re in it for the long term, and look forward to creating a flourishing ecosystem around $CRYSTL!