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Should seed investors and VCs be eligible for the @Sagaxyz__ Loyalty Drop? What do you think? These guys are already eating very well.
Despite their lockup period and vesting schedule, early investors can stake their $SAGA tokens to earn staking rewards.
The circulating supply of $SAGA is 90M; however, there are already over 700M $SAGA staked. 🤔
To clarify, I have no issue with these individuals being able to stake their tokens and participate in the chain's governance. However, them earning staking rewards despite a 1-year lock-up period and a linear vesting for 3 years seems very questionable to me.
▶️Think about this:
By the time VCs' tokens fully unlock, these guys sit on 50-70% of their initial token allocation. In the fundraising rounds they paid X for Y tokens, but now as their vesting comes to an end, they own Y + 50% staking rewards. 😟
Alternatively, they could just dump their staking rewards for months and years in a row, so that by the time their original allocation unlocks, they've already made more money than they initially invested without having sold one single token of their initial allocation. 🤯
Should these folks also be eligible for the loyalty drop (redistribution of unclaimed airdrop tokens), then I've definitely lost faith in so-called community projects. It's always the same: VCs win big time, and retail acts as their exit liquidity they can dump on.
Btw, I don't want to shit on Saga here, this is a general problem with L1s. The same thing is true for protocols like @CelestiaOrg or @dymension.
Finally, I think VCs should definitely be eligible for airdrops going to the project they hold a stake in, but please, they should not earn staking rewards on their locked-up and vesting tokens.
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