MINE Governance in Time

    What are the trends? Compare $MINE staking trends with $LUNA staking, do you think a lockup period would be beneficial? For those that have stopped staking, what did they decide to do instead in the Terra ecosystem?

    No significant correlation or lagged-correlation (autocorrelation) between LUNA and MINE were present in the data. This was checked with R Software and on lags starting from 0 to 14 days.

    To proceed further, normalization was done to allow for comparison between LUNA staking & MINE staking. To do this, Each staking transaction was converted to be in terms of "percent of total stakes in period for coin". e.g. If the raw data cover a period of 7 days, where the total LUNA stakes were 300 LUNA tokens, someone with 60 LUNA staked would have 20% on for the normalized_staked_luna column.

    Trying to capture any information present in the relation between LUNA & MINE, a LUNA-to-MINE ratio was devised. The ratio divided normalized-LUNA staking amounts on normalized-MINE staking amounts. If there is a trend, interesting patterns should emerge (wave-like, linear-like or exponential-like plots). But this also didn't show any interesting trend or (auto-)correlations.

    It must be said though that it is early to establish robust statistical insight on trends with such little data amount.

    One observation captured my eye was that Pylon staking seems to witness interesting traffic on Mondays and Wednesdays.

    What did Unstakers do?

    To answer what did unstakers do, the following bar chart shows percent of each interaction in Terra ecosystem using a MINE token immediately after unstaking. In other words, this shows only the first interaction after unstaking for each unstaker.

    More than half swapped their MINE to some other token (send-send & send-swap). 8.79% provided MINE-UST liquidity directly to Pylon (provide_liquidity - transfer_from). 8.14% restaked (send - staking). 3.37% unstaked even more MINE (withdraw - transfer). And 16.98% never interacted with MINE again (Did Nothing).

    Loading...
    Loading...
    Loading...
    Loading...

    Will a lockup period be useful?

    It is hard to tell without AB testing.

    If we are to use LUNA as a benchmark for comparison, we find conflicting information.

    On average, Normalized LUNA staking amounts outperformed MINE's 1.7 times. But if one pays good attention to the ratio chart, some spikes can be noticed. These sudden and exceptional events may pull the average up.

    Therefore, it might be wise also to look at the median, which stands at 0.78 LUNA per MINE staked. This means, that by looking at the median and neutralizing the effect of spikes and outliers, normalized MINE stakes are more than LUNA stakes.

    Without enough evidence, agnosticism towards answering this question might be best at this phase.

    Loading...