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Coulou
@okay_lets_ride
eternal optimist, abundance maxi, it is what it is
Joined September 2021
477 Following    7.4K Followers
This will likely be a step forward toward in-kind redemption and voting rights, likely on how they manage dividends. In-kind redemption and voting are extremely bullish for LONG eco, but few get why. Here are a few reasons: - The quote asset becomes real stock. Every NVDA in the AI pool and treasury becomes exchangeable 1:1 for an actual NVDA share. - This will actually allow a lot more market makers to participate. With redemption, the onchain inventory converts into the real share. Thus they can hedge off-chain and exit by redeeming. - This means that the USDG/NVDA market & other stable / stock pools will likely be more tight. A more tight USDG/NVDA market means that more flows can route through it without slippage, which means that more flows can route through the AI / NVDA pool as well. Because going from USDG --> AI can hop through the tighter USDG / NVDA pool first. This means that the native AI / NVDA pool can capture more flows (and cross pairs like AI/BONER as well as second-order effect, and thus more NVDA gets locked, more AI gets burnt. Flywheel flywheeling. - Stock tokens supply stops being scarce: market makers who can exit by redeeming will create new stock tokens when demand rises. I believe this is why we've seen stock token supply halts a bit lately, and why we'll see novel growth when in-kind redemption is available. - On voting rights, this will likely take more time as there will be some KYC attestation / DAO LLC requirements, but I believe LONG will be the best positioned ecosystem where memes holders will be able to vote on the underlying stocks, and start having real impact. The future is bright, the future is LONG
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Something is coming 🔜 to Stock Tokens. Stay tuned.