Just to let you know my background, I’m one of the official ambassadors of Plasm Network and I love the project and community and have been around since the 2nd lockdrop.
This issue is not new but I would like to give my perspective because I think this will be a problem in the future if we don’t fix this issue now.
Before I go ahead with the calculations let me just clarify the following:
Yes, PLM is FREE in exchange for locking ETH. But if investors will only get pocket change for the amount of ETH and time they locked their ETH, they are better off doing ICO which I believe most participants of the lockdrop are used to, therefore expecting ICO gains.
The price will be determined by the market. Therefore, I believe it would be premature to do redenomination of the token BEFORE the price has been determined by the market. Since we cannot adjust both PLM and price. I can imagine the remorse of investors who have 100,000 PLM and once redenomination hits, they will only have 100 PLM and if the price reaches $1 per PLM they will have a “buyers remorse” on why redenomination happened since in their mind they should have $100,000 USD and not $100. “I have wasted my ETH, lost time and money, I should have joined other ICOs and made a lot more!” This is especially true for those who locked 1000 days.
Here are some data that I gather based on the Lockdrop Calculator which you can find here:
The price of ETH is still $381 USD in the calculator this is around the 2nd lockdrop.
Let’s say the investor invested 10 ETH or $3,810 USD, he will get the following PLM based on the days locked. I removed the decimal value to avoid confusion.
30 Days: 40,871 PLM
100 Days: 170,299 PLM
300 Days: 613,079 PLM
1000 Days: 2,724,796 PLM
The team is planning to do a redenomination and moving everything 3 decimal places to the left. If you have 100,000 PLM it will now only be 100 PLM after the redenomination.
The amount of PLM I get after redenomination:
30 Days: 40,871 PLM → 40.871 PLM
100 Days: 170,299 PLM → 170.299 PLM
300 Days: 613,079 PLM → 613.079 PLM
1000 Days: 2,724,796 PLM → 2,724.796 PLM
If the price of PLM goes to $1 the investors who locked 10 ETH or $3,810 USD will only get the following:
30 Days: 40,871 PLM → 40.871 PLM → $40.871 USD
100 Days: 170,299 PLM → 170.299 PLM → $170.299 USD
300 Days: 613,079 PLM → 613.079 PLM → $613.079 USD
1000 Days: 2,724,796 PLM → 2,724.796 PLM → $2,724.796 USD
This is IF the price reaches $1. What if the price is $0.10 or even $0.01?
I think reactions will be worse if they compare it to the current ETH price which is $1,800 USD.
10x to 100x gains are normal in ICOs. Lockdrop participants will only get a maximum of almost 2x if they locked their ETH for 1000 days.
Just like other ICOs, we should offer a lot less PLM on the 3rd lockdrop in exchange for DOT to make investors of 1st and 2nd lockdrop participants relevant.
Moving 3 decimal places is a bit too much, maximum of 2 and ideal of 1 would be better.