Olympus Community Approves Proposal to Purchase More ETH: What You Need to Know

On April 16th, it was reported that the Olympus community, the Algorithm Stable Coin Protocol, has voted on the OIP-137 proposal to purchase more ETHs to support OHM tokens. The OIP has established a new framework for its DAO finance, including gradually changing the treasury asset ratio to 75% stable currency and 25% directional exposure. Currently, it consists of approximately 79% stable assets and 21% volatile assets, which is expected to reduce stable currency exposure by approximately $25 million.

Algorithm stable coin protocol Olympus will purchase more ETHs to support OHM tokens

The Olympus community has been making headlines recently following reports that the Algorithm Stable Coin Protocol has voted on the OIP-137 proposal to purchase more ETH to support OHM tokens. This move is set to drastically change the configuration of its DAO finance by altering the treasury asset ratio to 75% stable currency and 25% directional exposure.

Introduction

The Olympus community is a decentralized autonomous organization (DAO) that governs a cryptocurrency called Olympus. This community is responsible for establishing its own monetary policy, electing new members, and making critical financial decisions on behalf of the protocol.
In this article, we will look at the recent update from the Olympus community. We will explain what the OIP-137 proposal entails, and what it means for the community and Ethereum as a whole.

What is the OIP-137 Proposal?

The OIP-137 proposal is an internal change to the DAO finance framework, which seeks to adjust the treasury asset ratio in favor of volatile assets like ETH. This proposal is a key indicator of the community’s belief in Ethereum as a long-term viable asset.
The primary reason behind this move is to give the community more directionality towards assets like ETH, which have more upside than downside potential. Although this move may increase the risk factor for the community, the increase in directional exposure towards volatile assets like ETH will increase the overall expected returns on the treasury.
The OIP-137 proposal will bump up the percentage of volatile assets in the community’s treasury from 21% to 25%. This equates to approximately $25 million in stable currency exposure. This proposal is set to be implemented gradually over the next several weeks to ensure a seamless transition.

How Will This move affect the Olympus Protocol?

The OIP-137 proposal is indicative of the Olympus community’s faith in Ethereum as a long-term, viable asset. The increased directional exposure towards volatile assets like ETH will increase the overall expected returns on the treasury, despite the increased risk factor.
This move is also set to increase the intrinsic value of OHM tokens, which stands to benefit from the increased exposure to ETH. Olympus is still an experimental protocol, and as such, its financial decisions carry a degree of risk. However, the community is confident that the move towards volatility is a necessary step towards achieving its long-term vision.

Implications for Ethereum

The OIP-137 proposal has significant implications for Ethereum as a whole. This is particularly important in light of Ethereum’s recent foray into proof-of-stake with the Beacon chain and ETH 2.0.
The move towards volatility is a clear indication of the Olympus community’s faith in Ethereum’s long-term viability. This increased directional exposure towards volatile assets like ETH will lead to an increase in demand, which ultimately drives up the price of ETH. The increase in OHM tokens’ intrinsic value will also incentivize more investors to hold ETH, further increasing demand for the asset.

Conclusion

The OIP-137 proposal to purchase more ETH to support OHM tokens is a significant development in the world of decentralized finance. This move is indicative of the Olympus community’s faith in Ethereum as a long-term, viable asset. The increased directional exposure towards volatile assets like ETH will increase the overall expected returns on the treasury, despite the increased risk factor.
The move towards volatility is likely to have significant implications for Ethereum’s long-term growth and development. It is an exciting development for those who believe in the potential of cryptocurrency and decentralized finance.

FAQs

1. What is the Olympus community?
The Olympus community is a decentralized autonomous organization (DAO) that governs a cryptocurrency called Olympus.
2. What is the OIP-137 proposal?
The OIP-137 proposal is an internal change to the DAO finance framework, which seeks to adjust the treasury asset ratio in favor of volatile assets like ETH.
3. What are the implications of the OIP-137 proposal for Ethereum?
The OIP-137 proposal has significant implications for Ethereum in terms of demand and price. Increased directional exposure towards volatile assets like ETH is a clear indication of the Olympus community’s faith in Ethereum’s long-term viability.