1/7 The $SPK blind mining phase (retrospective airdrop) of SparkDAO (a sub-DAO of MakerDAO) does not seem attractive from a computational perspective 😂
2/7 According to MakerDAO economics, all its sub-DAOs (SubDAO) must issue 2.6 billion tokens each, and issue 500 million tokens for mining and another 100 million tokens for sales in the first year.
https://endgame.makerdao.com/tokenomics/subdao-tokenomics
3/7 For this blind mining, the $ETH deposit pool was given 6M SPK, and the $DAI loan pool was given 24M SPK, which is 5% of the issuance in the first year and 1.15% of the total.
4/7 If we assume that $SPK can reach 15%-20% of the market cap of $MKR FDV (being optimistic), then 1 SPK will be worth about $0.1 USD, which means that the market cap of 30M SPKs will reach $3 million . PS: Considering there are 6 other SubDAOs, 15%-20% is pretty good.
5/7 So, how many points will this 3 million US dollars be retroactively airdropped into? Approximately, TVL’s total locked-up value is US$250 million (191M DAI; 56M ETH). A simple back-of-the-envelope calculation puts the yield at just over 1%.
6/7 According to the plan, blind mining may not end until May 24 at the latest. This means that over roughly half a year, the expected return is just over 1%, which is not competitive with the returns from holding $sDAI.
https://forum.makerdao.com/t/proposed-spark-pre-farming-airdrop-formula/21786
7/7 Of course, if someone thinks that FDV is just a meme, for example, there were only 30M SPK initially circulating in the market, and the unit price is calculated as 1U (that is, FDV exceeds 1 times the valuation of its parent DAO MKR), then that is another matter.
Of course, we should also treat it with caution. If MKR's subsequent performance is amazing, then SPK will definitely be linked to it. However, as it currently stands (as of October 2023), $SPK does have relatively limited appeal from a static perspective.
Author of this article:
0xTodd | Nothing Research Partner
