Aurora's Growth, GNO Supply Reduction, AI in Gaming

APR 19, 2022 • 5 Min Read

Joo Kian + 2 others

DISCLOSURE: DELPHI VENTURES HAS INVESTED IN TRI AND LUNA. MEMBERS OF OUR TEAM ALSO HOLD GNO. THESE STATEMENTS ARE INTENDED TO DISCLOSE ANY CONFLICT OF INTEREST AND SHOULD NOT BE MISCONSTRUED AS A RECOMMENDATION TO PURCHASE ANY TOKEN. THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND YOU SHOULD NOT MAKE DECISIONS BASED SOLELY ON IT. THIS IS NOT INVESTMENT ADVICE.

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Chart of The Day: Aurora Grows as NEAR Gains Traction

  • Aurora is an EVM-chain built on Near Protocol that utilizes sharding to split the responsibility of processing transactions and allowing for high throughput of its blockchain.
  • The Near ecosystem has been gaining traction on Twitter recently due to the rumors surrounding $USN, a decentralized stablecoin on NEAR, which might be based on a similar model to how LUNA and UST work. The full documentation of how $USN will work has yet to be released but it seems like an attentive user has already found the deployed $USN contract. The launch of USN will likely bring demand to NEAR as it is likely to use NEAR to mint USN algorithmically.
  • TVL on Aurora has seen a significant increase even despite uncertain market conditions, hitting a new high of $911M. With $USN integrated, it’ll likely bring in more traction to both NEAR and AURORA projects.
  • As highlighted in our previous Daily, NEAR was the best performing L1 in March. April has been no different as NEAR continues to outperform other major L1 peers. Time will tell whether $USN can gain serious traction, and whether said adoption will continue fueling NEAR’s recent momentum.
  • To learn more about the intricacies between L1s and L2s, check out our recent Delphi Pro report here.

The Gnosis Inferno & Down-to-Frax DAOs

[Excerpt from Apr. 18th DAO Insights]

Forum Spotlight

  • The Gnosis Inferno
  • Synopsis: Gnosis DAO has begun discussing a drastic reduction in their token supply. 6.8m GNO is vesting from the original GNO sale. The team allocated this GNO to the DAO treasury. This proposal would lock and progressively burn this vesting GNO, reducing supply from 10m to 3m. The main motivation for this drastic burn is seemingly that it may attract new investors by removing the risk of this massive amount of vesting tokens coming to market. The post also posits that the burn would empower existing GNO holders, and better aligns the GNO supply with future requirements.
  • Pro Arguments: A token burn of this size obviously has the support of some in the forum. An informal poll shows 87% favor the burn. This would undoubtedly create tailwinds for the token. Removing that supply would reduce the risk of the token falling into FDV hell. Even a Gnosis team member echoed that the DAO will likely not need more than 3m GNO.
  • Counter Arguments: Forum users presented some valid criticisms though. First, Wunderbernd argued that unit bias could be a barrier for investors considering GNO. If Gnosis becomes too expensive, investors will choose to purchase higher supply, lower price tokens instead. They propose that Gnosis DAO adopt the YFI/WOOFY model created by Yearn. A Maker DAO contributor presented some well-thought-out criticisms, arguing that reducing the supply may require the DAO dilute holders in the future through minting GNO due to some unforeseen event. The contributor argues that the GNO could instead be used as collateral for minting DAI.
  • Our Position: Taken with other favorable GNO tailwinds, like SAFE token allocations and an increase in Gnosis Chain TVL, this could potentially lead to a surge in the price of GNO. So for that fact alone, investors should watch how this plays out to position themselves accordingly. Notably, GNO has had a strong run outperforming BTC and ETH by ~120 and ~60 percentage points over the last year, respectively.

  • For more, Delphi members can see the latest DAO Insights here.

Aaron McDonald & Brooks Brown: The Evolution of AI in Gaming

[Excerpt from a Delphi Podcast]

  • For more, you can see our latest Delphi Podcast releases here.
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Joo Kian + 2 others