The Game (Theory) of Olympus
The simplest model of Olympus has two players with three possible actions:
- Stake (Buy)
Players are most likely to stake when they anticipate an expansion in supply and/or price. Players are most likely to sell when they anticipate a contraction in supply and/or price. Players are most likely to bond when they do not have a strong directional bias but don’t anticipate significant downside.
Staking has the effect of pushing the price up +2. Selling has the effect of pushing the price down -2. The player who moves price gets half of the benefit. Bonding has no price effect but provides a discount of 1.
As you can see, the dominant strategies are all cooperative. Both players’ staking results in 6; stake and bond results in 4; and bond and bond results in 2. Conflicting moves (stake/sell and bond/sell) are neutral. Competition (sell/sell) is the only negative sum outcome, with -6.
This is simplified to a dangerous degree. These dynamics will strengthen and weaken depending on the premium, market outlook, macro environment, and a litany of other factors. Don’t read too hard into the numbers. This is merely meant to demonstrate the positive-sum environment created by cooperation.
Working together produces optimal outcomes, so I urge you not to get involved unless you intend to stick around for the long term. Don’t be that guy who sold Bitcoin at $50 to buy back at $20. This is more like Bitcoin than you probably realize. Unlimited supply does not have to mean no scarcity.
Follow us on Twitter: @OlympusDAO
Read it first on Medium
Join the discussion on Discord
Keep up to date on Telegram
The information provided in this Medium Post pertaining to OlympusDAO,
Inc. (“OlympusDAO” or the “Company”), its crypto-assets, business assets,
strategy, and operations, is for general informational purposes only and is not
a formal offer to sell or a solicitation of an offer to buy any securities,
options, futures, or other derivatives related to securities in any
jurisdiction and its content is not prescribed by securities laws. Information
contained in this Medium Post should not be relied upon as advice to buy or
sell or hold such securities or as an offer to sell such securities. This
Medium Post does not take into account nor does it provide any tax, legal or
investment advice or opinion regarding the specific investment objectives or
financial situation of any person. OlympusDAO and its agents, advisors,
directors, officers, employees and shareholders make no representation or
warranties, expressed or implied, as to the accuracy of such information and OlympusDAO expressly disclaims any and all liability that may be based on such information
or errors or omissions thereof. OlympusDAO reserves the right to amend or
replace the information contained herein, in part or entirely, at any time, and
undertakes no obligation to provide the recipient with access to the amended
information or to notify the recipient thereof. The information contained in
this Medium Post supersedes any prior Medium Post or conversation concerning
the same, similar or related information. Any information, representations or
statements not contained herein shall not be relied upon for any purpose.
Neither OlympusDAO nor any of its representatives shall have any liability
whatsoever, under contract, tort, trust or otherwise, to you or any person
resulting from the use of the information in this Medium Post by you or any of
your representatives or for omissions from the information in this Medium Post.
Additionally, the Company undertakes no obligation to comment on the
expectations of, or statements made by, third parties in respect of the matters
discussed in this Medium Post.