Add as a preferred source on GoogleTwo Prime CEO Says Rewards for Bitcoin Deposits on Babylon, Stacks Shrink as Deposits Grow
Alexander Blume says more deposits mean less reward per depositor on the two protocols and argues their subsidies will eventually run out.
Alexander Blume, co-founder and CEO of Two Prime, argues that rewards for Bitcoin deposits on Babylon and Stacks decline per depositor as participation grows, raising questions about how long their incentives can last.
Blume’s argument is specific to those two protocols: as deposits increase, each depositor receives less, and he expects the subsidies behind the rewards to eventually run out. His view does not establish a market-wide decline in Bitcoin yield.
Babylon is among Bitcoin yield products that pay rewards in network tokens rather than BTC, a design covered in an earlier overview of Bitcoin yield products.
Enna Lee
ReporterEnna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to info@tokenpost.com.