Olympus DAO: ‘Say Bye To High APY’
In order to make the system more viable, Olympus DAO has reduced the OHM token’s yearly percentage staking reward to 7.35%. The benefits were lowered when the DAO accepted OIP-119, a governance proposal.
The project emphasized in a Thursday Twitter thread headlined “Say goodbye to high APY” that, while the DAO’s previous goal was to bootstrap adoption by delivering a very high yield, it is migrating to a new tokenomics architecture.
The Olympus DAO protocol is a DeFi protocol with a treasury that supports the OHM token. According to its website, it operates in two ways. The first is accomplished by cryptocurrency bonds denominated in vested OHM tokens. In this case, the DAO releases OHM tokens at a discount to investors in return for their cryptocurrencies, with the goal of gradually increasing its treasury.
The second method is to stake OHM tokens on only one side. The official website now offers this return as 254.8% APY, provided to individuals who deposit OHM into its single-side token staking pool.
According to the DAO, this specific staking return would be reduced to 7.35% after the newest governance proposal. According to the DAO, this modification will help the project achieve more sustainable growth.
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