Olympus DAO has reduced the annual percentage staking yield of the OHM token to 7.35%.
Following the DAO’s approval of OIP-119, a governance proposal, the rewards were scaled back in order to make the protocol sustainable.
The Olympus DAO team explained that while the project’s previous goal was to bootstrap adoption by providing a very high yield, it is transitioning to a new tokenomics framework. The company announced the news in a Thursday Twitter thread titled “Say bye to high APY.”
Olympus DAO is a DeFi protocol that backs the OHM token with a treasury. According to its website, it approaches operations in a two-pronged manner.
The first is through cryptocurrency bonds with vested OHM tokens as the par value.
In this case, the DAO grows its treasury over time by giving investors OHM tokens at a discount in exchange for their cryptocurrencies.
The second is the OHM token single-side staking. The yield paid to those who deposit OHM to its single-side token staking pool is currently displayed on the official website to be 267% APY.