Explain why we can't sell wZNN for the first month?

Zenon
1

Can someone please explain to me the rationale for not being able to sell wZNN for the first month?

  1. It could be ideal to release a bridge article around the same time as chainsafe tweets about it and the bridge goes live.
  2. Or is it better to wait until we can sell wZNN before promoting the bridge? Part of me thinks, no matter how well you explain it, a number of people will think “honeypot” and damage to our rep is more harm than good.

I’ve already drafted an article about the bridge, the audit, the liquidity program and benefits to the ecosystem. I’ll share it on forum after it gets some more feedback. But the question is when to release it.

I’ve read the answers and I still don’t understand the rationale. Please explain again.
3) is it to prevent a massive dump as soon as it’s live, because some big sellers are waiting for a dex?
4) is it to allow time to test the orchestrators and contract mechanisms w no exploits on the eth side, so its a soft launch?
5) something about allowing a month for people to keep adding liquidity, so we have the depth to hopefully absorb a big dump if we have 100k wznn added, in which case why is there a cap to the liquidity? why not leave it uncapped for the period where u can’t sell?

2

The answer is very simple.

Some of the current ZNN holders will want to participate in the liquidity pool so they can get rewards from the Orbital program.

To do that, they will probably go and sell some ZNN in the pool to get ETH and then use that ETH to add liquidity to the pool.

When that happens, the price drops.

The liquidity pool does get deeper, but we’ll end up with a lot of wZNN in the pool and very little ETH.

Do we want to consolidate the liquidity pool on the way down or on the way up?

Sure there will be a massive dump at some point, but at least we’ll have consolidated some liquidity on the way up, so the impact will be lower than it would be otherwise.

3 Likes
3

So we allow dumpers to get a better price for their dumping? That reeks of honeypot. Why not let the market sort it out. Just give people 3 days to enter the pool.

4

Because at first there will be 2$ liquidity.