Derive co-founder proposes to increase DRV token supply by 50%

Huobi HTX reported that Derive co-founder Nick Forster proposed to expand the supply of on-chain options exchange native token DRV to retain core contributors and reach deals with institutional partners. The proposal was released on Friday, September 12. According to the proposal, Forster recommends issuing 500 million additional DRV tokens to increase the total supply by 50%. These tokens will be allocated to the Derive Foundation (which will be renamed from the original Lyra Foundation to echo the old name of the agreement). The proposal estimates that existing holders will be diluted up to 8.25% per year over the next four years. “Both the Foundation or BVI subsidiary does not have enough token budgets to execute strategic transactions to achieve consistent interest on the scale required to drive the adoption of the agreement.’” In addition, the proposal also disclosed that Derive has cut relations with team members and investors who support the merger with Synthetix. The merger plan was finally stopped in May this year after Derive investors criticized it for underestimating the value of the on-chain options platform.