Co-founder of the blockchain exchange Derive, Nick Forster, proposed increasing the supply of DRV by minting 500 million new coins. This proposal may result in annual dilution for existing investors.
New DRV Coin Supply and Distribution Plan
According to Forster’s proposal, the newly minted 500 million DRV coins are set to be allocated to the Derive Foundation. It is planned to rename the foundation from the former Lyra Foundation to the Derive Foundation. 46% of the new coins will be allocated to core contributors who have largely completed their vesting periods. These coins will be vested over four years and only released when DRV’s market value exceeds $150 million. Currently, DRV’s market value stands at approximately $28.5 million.
Strategic Shift in Altcoin Direction
This proposal marks a strategic shift from Derive’s previous commitment to refraining from minting new coins. During the transformation from LYRA to DRV coin, the supply remained fixed at 1 billion coins. The new proposal positions the supply expansion as a strategy to enhance competitiveness.
Details and Partner Names in the Plan
Forster disclosed that Derive has parted ways with team members and investors who supported the merger with Synthetix, which was mutually terminated in May. The rationale behind the proposal includes the need to compete with the strengthened market dominance of Deribit after its $2.9 billion acquisition by Coinbase.
Forster's proposal to expand DRV supply places the company in a more favorable market position, which may attract further investments and strengthen market presence.
