House of Chimera Weekly Altcoin Update Week 19

This week's HoC Weekly's Altcoin Update will highlight XCAD Network and LUNR token

XCAD Network

Governance proposal

The first governance proposal went live on the XCAD Network governance portal earlier this week. The proposal revolves around extending the vesting period of the native token, XCAD. Currently, around 62% of the Private Sale tokens are unlocked. To summarize the proposal, the vesting of Private, Pre-Seed increases by a year, team complete unlock increases by a year, and advisory tokens are subject to a six-month extra cliff. If the proposal goes through, the daily emissions of XCAD will decrease by 60%, from 48K to 20K XCAD. Furthermore, the proposal reduces the burn rate for early unlocking tokens from 75% to 59,5%. This allows users to early unlock tokens against a lower penalty, possibly increasing the total burned XCADs, thus potentially decreasing the total supply.

Indirect implications

The indirect implications of increasing vesting times are relatively straightforward but impactful for the ecosystem and its stakeholders. Commonly, if the circulating supply decreases or the daily emissions are lowered, it decreases volatility. The market makers are not dependent on daily unlocks; they deploy a specific capital. Consequently, if that amount of money does not lose its relative power due to emissions, they are more able to control the market and decrease volatility. Additionally, retail investors' relative selling pressure decreases if the daily emissions are lowered. Therefore, giving the market makers more control over the market and, thus, improving the price stability of XCAD. Accordingly, this could help attract more content creators considering that commonly high volatility is perceived as unfavorable.

LUNR token

Ecosystem growth

The LUNR ecosystem is ramping up its growth and has onboarded two tier 1 exchanges within one week, drastically improving the asset accessibility. Consequently, the TVL of LUNRfi increased to 3.66M LUNR, and approximately 10% of the total supply is locked up. LUNR is currently a top 5 ZRC-2 project by marketcap while outgrowing most projects. It is expected that LUNR will continue to grow considering the daily emissions are decreasing; hence, the circulating supply is growing less fast. However, investors can still optimize their LUNR holdings to ridiculous APRs.

Optimize your LUNR holdings

The LUNR ecosystem allows users to get weekly rewards by holding a certain amount of tokens. The highest level is currently level 4, and you need to hold 500 LUNR tokens to acquire the level. You get a package of benefits (e.g. access to more data) and weekly rewards in exchange. Currently, level 4 users get 15 LUNR weekly, up to 60 LUNR a month. Additionally, users can stake their assets against up to 25% APR, doubling their rewards. On top of that, users also get rewarded for time spent on the website. If a user does stake their 500 LUNR, and get the weekly rewards, the estimated APR is around 150% (no restake). If the user does restake all his rewards, the APR is even higher. This is currently one of the highest staking APRs in the ZRC-2 ecosystem.