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It is not a ponzi. The 20% they were paying out should be considered a cost of user acquisition paid out by the team themselves. If paying incentives to attract
by dereg 4y ago
It is not a ponzi. The 20% they were paying out should be considered a cost of user acquisition paid out by the team themselves. If paying incentives to attract users is a crime, we’d have to shutter most startups.
I’m not defending Terra, but we should be precise with our words lest we escape reality ourselves.
- unmole 4y agoCost of acquisition?! Were the holders investors or customers? Again, how were they funding the 20%?
- dlubarov 4y agoThe source of funding was the initial LUNA tokens that were allocated to Terra (or Do Kwon personally?). I think it was broadly understood that 20% yield wasn't going to be sustainable, but was a tool for short-term user acquisition.