This issue has been discussed before but I think it is worth bringing up again in light of changing market dynamics. The price of a single YFI token is very high (~50,000 USD) and this discourages new investors and less experienced investors from participating. The market cap of YFI is laughably low compared to many coins/tokens and ranks roughly 70th in market cap in crypto. DOGE for example is worth over 25 times the value of YFI in market cap. Part of the reason for this is that DOGE has billions in supply so a price of .40 cents still âseems lowâ to less experienced investors. Stock splits are quite common in the stock market, even with many of the largest and most successful companies in history. Apple has performed 5 stock splits in their history. Microsoft has performed 9 stock splits in their history. Tesla performed a stock split last year. Walt Disney has performed 8 stock splits in their history. There is realistically no downside to performing such an action. In fact, people have long suggested bitcoin do something similar (using units such as satoshi) but the logistics of that on BTC are nothing like a token with a governance.
I think splits are kind of gimmicky, but I canât say itâs an ineffective gimmick
If we Look at Berkshire Hathaway. Theyâve never done one and seem to be doing ok (despite their stodginess) I think Yearn could be kind of like the BRK of Crypto, weâve got amazing devs, and weâre building up a suite of protocols that cover almost every niche of defi.
I think the argument could be made that being highly priced makes sense for Yearn, just like it does for BRK.A.
However, they do have a BRK.B though that is a lower priced option. That option was largely done to help people get a piece of BRK before fractional shares were a thing though. Thereâs nothing stopping someone from buying .0001 YFI today. (I do acknowledge that mentally itâs nice to have a whole one of something though)
Iâd prefer not to tie up the devs time with something thatâs not really moving the DeFi Space forward as much as just copy/pasting number go up tricks from Trad-fi
This token/stock split talk is so lame, new or inexperienced investors should not be a factor in such a decision, if they canât get past a simple multiplication calculation to know the value of what they are buying, they will certainly donât understand a thing about YFIâs project, product, use caseâŚ
The main reason for most of stock splits over the past years was mainly the non fractional nature of shares, but as of now most stock brokers accept fractional shares, so you will be seeing way less splits in the future. As for crypto thats not even a reason.
Bitcoin is a perfect example why this split discussion is completely irrelevant, as itâs price was never a problem for a noob to buy it.
Yearnâs team has way better use for their time in order to create value for the project, wasting their time and resources performing a split so some noobs think itâs cheap isnât exactly the way to go, Iâd say that even considering it shows a lack of priority or rationality. They should be 100% concentrated in creating good products, sound smart contract safety and a healthy ecosystem, thats the path for better valuation.
Being larger doesnât make you richer. Someone will lose their shirt when doge joke coin , which is good for playing slots, goes back to its true value. Pump and Dumps - scumbags use methods to gain at the expense of new crypto users, tarnishing their concept of Crypto.
There is absolutely no reason to consider a split. Given you can purchase/trade fractional tokens. Also, the low supply is a benefit to YFI. I think if the team continues to execute, it should continue to appreciate accordingly. The split would be dilutive in nature because itâs not the same as a stock. Crypto in its current form hardly follows stock market principles regarding market cap. You canât say that doge is worth $50 billion or Ripple is worth $80 billion with any logic whatsoever, and I donât think itâs a function of it being a low cost token, there are other factors involved. YFI can move exponentially higher and in an easier fashion due to having a low float, regardless if it has yet or not.
Itâs hard to say if a split will be good in the long run. I think lowering the price of the token makes it more attractive to a wider public, but also to a public, which isnât into crypto a long time and so reacts more emotional. If the price continues to be high, more informed users will buy the token and so the price will be more stable (i hope ) if there is a âstableâ in crypto.
Maybe a split could be announced in the roadmap like âif the Price hits XXX, a split will be performedâ. But the target Price should be higher i think, so that the more experienced users are attracted.
I agree with the others in this thread, a split would be great for short term speculation from crypto noobs that just look on the âprice is lowâ.
On the other side this will also make the price crash much more in a bear market since the uninformed will FOMO out of the token if it starts to crash and they donât have any understanding about the fundamentals.
I am not sure if itâs a positive to have uninformed speculators buy the token, but if we want the token to pump in this bull market and donât care about long term it would be great to split.
If we are looking to increase the dollar value of Yearn, splitting would be great.
Currently, why would a random dude buy YFI to earn money. When Bitcoin costs pretty much the same and have overtime raised much more in value.
If we are looking for more ârealâ investors splitting would probably be bad.
If we do not split, Yearn will more likely to be stronger through a bear market compared to Bitcoin. Everyone will be panicking and soon as Bitcoin price drop people will take their profits to avoid loses.
Since YFI has not been splitted, investors are here for the service and the possibilities. I do not think a random dude will end up buying Yearn, without knowing what it is due to its current price.
This. Splitting is just a way to exploit unsophisticated investors. This has a downside: YFI becomes more volatile (and more correlated with overall market volatility) because people that bought it didnât understand the value proposition.
Yeah, that is exactly what I meant! The question is still unansweredâŚ
(1) Do we want the value to increase faster and be more unstable and probably follow other cryptocurrencies similar to Bitcoin/ETH? If we do a split people may ask, why has this not raised in value? And the only reason they are buying is because they think number go up. (This is good for short term)
(2) Do we want to increase the value slowly and safely? Hopefully people will look up YFI and ask the question, âWhy is it valued so muchâ and people will hopefully google it and see what it is. (This is good for long term)
) if there is a âstableâ in crypto.