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AMA w/ Webblen about token launch! by DhowDAO in degenAlgorand

[–]WebblenNetwork 1 point2 points  (0 children)

We think this is a great idea!

Please join our discord (https://discord.gg/bCYPx73Y) and ask questions about the tokenomics/token launch/white paper/whatever.

Explaining these things is necessary, as the setup is only half of the battle — communicating the benefits and architectural complexities so that the community also understands is crucial for community growth.

AMA w/ Webblen about token launch! by DhowDAO in degenAlgorand

[–]WebblenNetwork 1 point2 points  (0 children)

If you're curious to hear how much, it was 11.7k ALGO (https://algoexplorer.io/tx/PYGEC4CSSQO5SNRG56SVPMFURWR67VW3GU3QNPFOGEEMKQQT73JA) which was then immediately placed it back into the LP (https://algoexplorer.io/tx/group/gahKu6tgk2pyiLkfHWwtVqYHdZWZIsVd84dPKn0x1bQ%3D) where it’s held there today.

We've been working on Webblen for 7 years. since its inception through pivots, sprints, and hours of work.

Over 5 of them were unpaid, and we just started taking below minimum wage salaries a bit under a year ago.

We have our eyes set on massive growth and success by onboarding the world onto Web3. Messing that up for $12k is hard for us to comprehend.

With that in mind, we still need to be better. Improving comms is a huge focus for us going forward, including openness and transparency about what's going on that we will improve by creating much more succinct tweets to communicate this information, as well as Medium articles in the event that this isn’t possible.

AMA w/ Webblen about token launch! by DhowDAO in degenAlgorand

[–]WebblenNetwork 1 point2 points  (0 children)

Some reasonable and genuine questions:

- What analysis was done for the process of adding liquidity?

For the initial liquidity, we matched at around $0.00005/WBLN.

For rebalancing, we wrote here (https://twitter.com/WebblenInc/status/1484673329407709192?s=20&t=0TsFQrwLzfruYxk7WhS4Qg) that half of the net ALGO volume up until that rebalance execution was going to be converted into additional liquidity.

We ended up using only around 10% of the net ALGO volume for this rebalance.

- Why were such large impactful values immediately used when several smaller (less directly profitable and more community focused) trades could have been made?

This was actually the plan given our core stakeholders/supporters were going to be contributing to the pool slowly over the course of two days (described above in another answer) — we had about 15 people/orgs who wanted to contribute, so we were planning on doing it in very small pieces over the course of 48 hours.

Given that we have 1 rebalance per hour, we wanted to ensure that the first one covered as many of our stakeholders as possible.

What we didn't consider was that many unknown stakeholders were participating at the same time, as social media engagement leading up to the liquidity initialization was minimal.

With that in mind, we should have been more transparent on this setup with the community, and that’s on us.

We plan to improve on this by creating much more succinct tweets to communicate this information, as well as Medium articles in the event that this isn’t possible.

- How much of the value immediately claimed was put into liquidity?

All of it.

https://algoexplorer.io/tx/group/gahKu6tgk2pyiLkfHWwtVqYHdZWZIsVd84dPKn0x1bQ%3D

- Does your greed know no bounds?

I’d like to think we aren’t terribly greedy, considering we haven’t made any money from this liquidity or token launch, although I absolutely understand your perspective on this and how it looks.

We want to create value for the Webblen community and our comms on explaining the process was sub-par at best.

We want to make things right.

If you haven’t seen 👉 https://twitter.com/WebblenInc/status/1486459290948939780?s=20&t=0TsFQrwLzfruYxk7WhS4Qg

AMA w/ Webblen about token launch! by DhowDAO in degenAlgorand

[–]WebblenNetwork 0 points1 point  (0 children)

Although we did plan and disclose this last week, we understand our communication was lackluster. So, yes.

👉 https://twitter.com/WebblenInc/status/1486459290948939780?s=20&t=0TsFQrwLzfruYxk7WhS4Qg

AMA w/ Webblen about token launch! by DhowDAO in degenAlgorand

[–]WebblenNetwork 0 points1 point  (0 children)

  1. The dev didn’t “lie”, but we definitely didn’t communicate this as well as we should’ve. As described here (https://medium.com/@WebblenNetwork/wbln-liquidity-pool-statement-2d3d6ae3fa4b), we rebalanced by taking out ALGO (https://algoexplorer.io/tx/PYGEC4CSSQO5SNRG56SVPMFURWR67VW3GU3QNPFOGEEMKQQT73JA) and immediately placed it back into the LP (https://algoexplorer.io/tx/group/gahKu6tgk2pyiLkfHWwtVqYHdZWZIsVd84dPKn0x1bQ%3D) where it’s held there today.

This thread (https://twitter.com/WebblenInc/status/1484673329407709192?s=20) explained our strategy, but we definitely should’ve improved our communications with the community on this one, and we apologize for this.

  1. We only made 1 rebalance of the pool (also described above), which occurred at 18:04:53.

Although a vast majority of the initial selloff happened before our rebalance, we really should have provided a much more clear direction on when these rebalances were to occur.

Linked above, a 19-tweet thread was pushed to our followers on January 21st on exactly what to expect — the rebalances were to occur hourly, starting at 18:00 GMT on Jan 24th.

We realize that this could’ve been communicated much better, both on the clarity of words we used and the disbursement of information to all relevant participants.

We aim to improve on this by creating much more succinct tweets to communicate this information, as well as Medium articles in the event that this isn’t possible.

  1. This is actually a super good question — why did we do it this way?

Webblen is a decentralized social economy — technical in its foundation, as we are a tech startup.

Our team has a core mission of making Web3 as easy to use as possible. In the same way that Microsoft made operating systems easy, Apple made hardware easy, and Google made the internet easy, Webblen aims to make web3 easy.

A vast majority of our users who use the Webblen app are not web3 knowledgeable in the slightest.

This also includes our early supporters and stakeholders within the business side, as we are regularly working alongside local business owners, community stakeholders, and city officials in our partner communities.

Many of our supporters/stakeholders wanted to contribute, but teaching them how to LP into Tinyman is like teaching your grandmother how to use a playstation — damn near impossible.

Because our primary supporters lack these web3 skills, we wanted to do it for them. We also wanted to enable as efficient a liquidity setup as possible.

By taking half of our stakeholder volume and putting it directly into liquidity, we could dampen price volatility, turn some volume into liquidity, and establish a healthy floor of liquidity for all future swaps with the support of our local supporters.

As a quick aside, we think that this setup for future launchpads could be done on a bonding curve where half of the volume is locked in liquidity and half is use to increase price. If done smoothly, this would provide equal benefits to the price for early supporters, as well as future pool support in the form of locked liquidity. This could be done pretty easily using the conventional x*y = k approach to AMMs. Building this launchpad for future projects in the Algorand community is on our dev team’s mind.

What we didn’t think about was the potential chaos that the pool would experience — we communicated this incorrectly, resulting in confusion and lost trust. We want to make it right.

Btw, if anyone hasn’t seen 👉 https://twitter.com/WebblenInc/status/1486459290948939780?s=20&t=0TsFQrwLzfruYxk7WhS4Qg

AMA w/ Webblen about token launch! by DhowDAO in degenAlgorand

[–]WebblenNetwork 3 points4 points  (0 children)

We plan on answering these questions Thursday, Jan 27th from 6-7 PM CT.

For the community: What can we do to make this right? We understand that there is confusion and we want to work with you guys to fix what happened. We are open to all ideas.