Redenomination of ROOK token

Draft: Redenomination of ROOK token

Proposal

Redenominate the ROOK token supply by 1000x.

Background

I would like to call this proposal: Token Price Psychology Proposal or TTPPP because it mostly affect the perception of the rook token price in the eyes of the holders and the possible future holders of the token.

Reasons:

  1. Dumb money think that tokens that have a smaller price (even if the total supply is bn of tokens ex, doge meme coins or similar), usually with a lot of zeros after the dot, have higher chances to “10x” - it is a fact unfortunately in the crypto space, my friends included. I spent hours to explain them what it is the supply and the market cap that matters but they are never 100% convinced. Having this redenomination will make the token more attractive to buyers thus supporting the price.

  2. Easier for use cases. Assuming that the price of rook will go up in value to 1000$ lets say, whenever we use rook as rewards for example, we would have to use fractions of that, like 0.25 rook or 0.5 rook which doesn’t seems much, better would sound 2500 or 5000 ROOK even if, I repeat, the value is the same. The human psychology is not a machine and it will value 500 ROOK more than 0.5ROOK (before redenomination).

Outcome:

  1. Every holder will get 1000x more tokens in their wallet. If you hold 10 rook, you will have 10.000 rook after redenomination.
  2. The price of rook will be 1000x less, from 124$ (at the moment of writing) to 0.124$ per token for example.
  3. Total token supply will increase 1000x but the marketcap will stay the same since now every token worth 1000x less.

Specification

To be discussed.

7 Likes

While I get the token psychology part of it. My opinion is that, I personally haven’t heard many concerns that people were priced out of ROOK because of the token price per coin. We used to be around 100-800$ which is on similar lines with other DeFi blue chips like Aave, Comp etc.

I think it makes more sense to coins which are far more scarce. Like YFI which is usually in 4 figs per coin. Also, want to note that YFI made an attempt to re-denominate with WOOFY and we all saw that it didn’t have much effect of price over sustained period of time.

Just want to highlight that the effort that we put in implementing this might not be worth the effort.

2 Likes

This is a good idea and will draw in a lot of noobs who may be scared off by high token prices.

Polkadot did the same thing and if you look at price history it seems to have turned out well.

very good idea

2 Likes

Very good idea! For long-term it’s best decision to make this redenomination.

1 Like

Do we want to cater to dumb money? Rook is not a meme coin and the keeperdao products are not easy to understand.

I agree with shadow, the effort of implementation is probably not worth it.

2 Likes