HEX, The OA, and BPD

So what did the OA do and why?

  • OA not staking increases the market cap of HEX. While market cap is a vanity metric, it does matter for bragging rights and people do care about it. The number of people who look at Bitcoin first, then go down the line is astounding (let’s buy a bit of BTC, a bit of ETH, a bit of LINK, BNB, ADA). So it’s good optics to have a high market cap, it’s marketing, and one day when we flipn BTC that will be mega bragging rights.
  • OA not staking increases the interest rate to stakers. Higher interest rates increases number of stakes, and stake lengths. Not many would jump up and down over a 5% interest rate, but 17%? 30%? 50%? OMG give me some of that!!. In a technical sense this is like robbing the OA (through inflation) and paying it to stakers to incentivise longer stakes.
  • The OA staked everything causing huge amount of TShares, diluting all stakers of their BPD payout and affecting daily payouts. For a few days the HEX daily payout was low (as low as 1.001 HEX/TShare on day 353).
  • Actors/traders planning to dump the day after BPD had less HEX to dump on the open market. This includes other whales who keep their HEX liquid.
  • The OA single day (and multi day stakes) decreased the BPD hangover depth and duration.
  • All of the above benefits (market cap, interest rates, …) apply once again.

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- Equities and options Trader, long/short. Crypto will change the world

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