⚔️ The Challenge:

In the early days of crypto and ICOs, many projects and DAOs launched static supply tokens which struggled to expand and contract with bull and bear market swings, and are not adaptive enough for the dynamic nature of these nascent economies.

This has also been a huge challenge for token valuations, with many DAOs and organizations seeing massive selloffs and price drops in the 90%+ range. When token price is a primary driver of the capacity to carry out work in a DAO ecosystem, volatile token prices are a hindrance to production in Web3 organizations.

Many DAOs and organizations are looking to move from static supply to dynamic issuance models and reduce volatility, however, many of these economic mechanisms and markets remain untested, and the designs need to be further studied and validated, in order to deploy safe and sustainable economies.