RE: SIM down again - but now I am president (again)!
Here's my opinion:
I enjoy the game, and I think the overall development is going in a really good direction. I am also not planning by any means to exit it any time soon.
But that being said, there need to be more knobs and handles in terms of governance because there is an edge case that is currently a problem.
When SIM is close to its peg, of course all is well. When SIM is low, and Hive is low it's also okay because the game delivers little, but it's also cheap to step in.
But the regime we're now in is one with relatively high Hive price and relatively low SIM price. At the moment, the players do earn a few SIMs at least, but what will happen if Hive moons to $2 or more?
When we look at the SIM price in the last 6 months, it has hovered around $0.0006 most of the time. Sometimes it was $0.0004 and occasionally it bumped up beyond the $0.001 mark, but not often.
Now if Hive moons to $2, and SIM is at $0.0005, then essentially the SIM price will drop to 0.00025 Hive. In this regime the following happens:
- The president loses control over the tax, as the lower bound is well above 100%.
- Nobody is earning SIM anymore (I believe?)
- Cards are still not cheap, and the incentive to buy is largely gone because the cards are not earning SIM.
It is this edge case that I am really worried about actually. How do we solve it? Here are my ideas:
- Give the president powers to nudge down (or up) the desired SIM peg, which then rescales the Hive prices for cards too.
- Create more sinks for SIM, e.g. by selling more cards that give non-SIM benefits.
- Ditch the Hive peg, and replace it with a HBD or BUSD peg.
I don't know if any of these ideas are any good, but I do think this problem is large, that it is likely to affect us all soon, and that it does need to be solved rather urgently.
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