Co-founder of Derive Nick Forster has proposed to increase the supply of DRV tokens by 500 million to strengthen the platform's position in the options market.
Proposal for Token Increase
Nick Forster has suggested increasing the supply of DRV tokens by 500 million to strengthen the platform's foundation and speed up partnerships with large financial players. He emphasized that expanding the supply is necessary to compete effectively in the options market.
Token Distribution Conditions
Nearly half of the new tokens will go to the core team, with restrictions in place: they will vest gradually over four years and cannot be sold unless DRV's market cap exceeds $150 million. Currently, the market cap stands at approximately $28.5 million.
Context and Implications for Derive
The proposal to increase tokens is contentious, as Derive had previously committed to maintaining a steady supply during the rebranding from LYRA to DRV. However, Forster insists that fresh issuance is critical for growth and for keeping the team motivated amidst the competitive landscape.
Thus, the initiatives to increase the token supply from Derive could significantly impact its future growth and competitiveness within the options market.
