Hello,
A lot of thoughts have crossed my mind the past few months about this projects. i believe the project has created vulnerabilities for its investors.
i will list them here and will get into detail on both of them
- farm it to 0 mechanism
- inflationairy all around (not only alchemica)
The “farm it to 0 mechanism” this one speaks for itself… we farm, but for what exactly? to either exchange alchemica to another asset, or to craft. first of all, let it be clear which one of the two options is the most popular one… but let’s say one chooses to craft (which obviously does happen as well ), what exactly are they crafting for? The crafters are paying to make their parcel look good and what not… this is essentially either what they enjoy to do, or they consider it a bet on the future of aavegotchi, believing that one day, their installations/decorations/tiles or which ever they decided to craft, will be viewed by players within the game and that they might (hopefully ) be admired for having the glorious parcel they do.
But the reality is today that there is little to no reason (except for saturdays, (they are imo a nice teaser of what meaningful and engaging social activity within the gotchiverse might feel and look like)) to be in the gotchiverse, except to go and empty your reservoirs or to channel, which are simply two financially incentivized activities, which then either way results in one of the two previously mentioned scenarios: craft or dump.
As much as i am a huge fan of aavegotchi as a whole, i cant deny that the situation this project finds itself in, is in essence no different than the regular ponzi p2e game… the only difference i can think of is that due to our slower ROI, we will have a longer breath before dying/going to zero… Don’t get me wrong, i don’t believe we will die or it will go to zero. i am just observing this situation objectively and this is my well considered conclusion.
What i do believe is that this project has now put a lot of pressure on itself (i think of it as a timer). We simply need to need alchemica for something in the game, or else this will not survive. poeple need to obtain value from farming it so that they can use it in the game for something that has a lifespan, such a thing as: spend 1 KEK for a 10 sec sprint. Alchemica ‘sinks’ as of now are just allocating alchemica inflation towards another place. Because the simple reality is that there is only so much money, the more assets you release, the more everything else will devalue, unless more money buys in. If this is the mission of the protocol than that is fine and this whole topic can be considered unvaluable for you.
A quote that comes to my mind here, considering that this project is according to its own employees/developers statements the big innovator in the space. (which i respect and admire wether or not i would be involved as spectator)
“It ain’t about who did it first
It’s about who did it right”
The first can be checked off, but i hope this project can be both