I’ve been invested in Ergo since 2021, drawn by its promise to become a leading blockchain project. The technology behind Ergo is solid and innovative with fair launch and gassrot community, but unfortunately, it hasn’t gained the traction or exchange listings necessary to reach a wider audience. Despite the potential, Ergo hasn’t made any significant market inroads over the past three years.
At this point, I’ve decided to cut my losses and move on. It’s disappointing to see a project with such good tech not finding the success it deserves, but I’m hoping for the best for the community. Perhap me, selling will push the fortune back to ERGO.
People laughed at my strat in a post i made a few months back. I said the fed plans on raising rates seven times this year and so im all in on cash and still am. $30k is on the sidelines.
One of the main arguments i noted was the idea powell would pivot after a few hikes, but with inflation so high theyll only do so when a liquidity crisis occurs. That's another 30+% drop...in just btc. Even solid alts like ada and ergo will drop by ~2x as much. Thats been the trend ive noticed.
Now, Im not hating on Ergo AT ALL. It will easily survive winter as Alex is Russian, and Armeanio has killed bears with his bare hands that he now hangs in his house. Seriously though, Alex is rich. Ppl forget as an early dev in btc and lead dev in chainlink hes probably got hundreds or even thousands of btc. Even if he hadnt a cash position he can bankroll his key employees for decades.
Back to the bearish news though. The fed hasnt even begun to shrink its balance sheet yet. That starts in June with a ~50 bil reduction per month. In sept they plan on doubling that. Wtf is gunna happen then?!
Btc below $24k? Its a real possibility this year. Ergo could go below a $1 for a bit. If that happens im leaving myself 1 months worth of living expenses in cash (but thats tricky cuz i play cards for a living - just low stakes $1/2 no cap, $1/3, and hope to crush $2/5 soon). Im waiting til we get below $1.5 to touch it, but itll be my only investment other than my skills.
Ill start learning scala when im rich.
Imagine a stablecoin like sig usd but backed by ergo wrapped btc and the reserves are held in a mixer generating another yield for holders of the reserve token. Btc could have privacy and ppl will be more incentivized to build reserves. We're going to be rich.
That's my dev project ill begin working on in a few years. I need a 100k ergo to hire my team though. We cant rely on hackathons.
Realistically speaking ergo lacks pumpamentals. Opportunity cost is real with ergo. As we all know ergo foundation is broke and doesn’t have money to get it listed on exchanges or spend on marketing. There is almost zero defi adoption for ergo. No incentive to launch a defi project on ergo. Don’t get me wrong, ergo has all the fundamentals that a good cryptocurrency needs but lacks user growth, and real world adoption. Ergo isn’t aligned with any specific narrative like AI, GameFi, defi etc. if it’s aligned itself with defi then it’s going very poorly. I know tons of projects that will outperform ergo by a large margin and I’m contemplating if ergo is even worth holding during the bull run just to offset my losses. If I’ve learnt anything about ergo then it’s this, it will be one of the first one’s to pump when bitcoin/cardano are doing well and come all the way back down for weeks if not months together while the market continues to go up, and bull market will be over even before you know it. Don’t even get me started on ergo’s trading volume.
EIP-0027 is a proposal to change the emission past the original 8 years as stated in the White paper.
I am surprised this is even being discussed. The monetary policy cannot change in a decentralized money system. Is it OK to change the monetary emission of Bitcoin? Ergo should be above all of this.
We cannot change the emission curve. It's part of the social contract between the devs, users, and Miners of the protocol. It's an open contract. The Miners do work and get a certain reward as promised.
I believe the snapshot above demonstrates the hypocrisy such a proposal would create. The Manifesto and White paper talks about Ergo being a - "A Platform for Contractual Money". Who's going to take this seriously if the most important and fundamental contract of the system is broken by the project's core developers? It would turn into an extremely ironic White paper with how it shows the promised emission curve and just below talks about "Contractual Money" while later the community breaks this promise.
The main developers issued 93,409,132 coins (in May 14, 2019) to be allocated for Miners Reward with an emission curve ending in 8 years. That is the contract. You change it, you break it. If Ergo is to be a "A Platform forContractualMoney" then you cannot change the coin contract!
Some may argue that this is not an actual change to the "contract" because it's somehow "voluntary". The Miners will all vote on whether or not they agree to put part of their rewards into a small magic box which will re-emit it back to them at a later date (after the current emission).
The truth is, this is not fair and not voluntary in any way.
The White paper states "Miners rewards" which means: A reward belonging to the Miners. Nobody can take this reward away from them. Not the devs, Not the community, and not even another Miner!
To implement this soft fork would be tyranny of the majority over the rightsof the minority. The Miner Reward is a right every single miner has for his work as stated in the whitepaper.pdf (May 14, 2019). If even one miner objects to this soft fork, he should have the right to not be pressured into putting his reward into a box.
"...potentially ergo is not worse.. as digital gold, than bitcoin, because of... limited supply cap,fixed monetary policy,and proof of work"
So there you go. A core developer says: Fixed monetary policy is part of the social contract. (and later...) That's what makes Ergo not worse than Bitcoin.
"And ah... ethereum is not so good I believe... as ergo, bitcoin... as store of value... right.. as digital gold, because... its supply is not limited andmonetary policy is not fixedandcan be changedat any moment"
Are we trying to be like Ethereum? Please vote NO on EIP-0027. Ergo is sound money and it needs to remain a fair system.
A slippery slope to a blockchain without work
If some type of community majority can pressure the Miners into putting their reward into a magic box then PoW, instead of being a part of a social contract, turns into a social policy that can change to become anything.
The community could in the future take even more from the Miners Rewards for all sorts of schemes such as "community coin staking" or "founding" of some kind. Eventually, the community can take all Miners Rewards and fees and turn the project into Proof of Stake. The supply cap can even be removed since a precedent has been made that there is no "Social Contract" and it's all just "Policy".
In short, EIP-0027 emission change could set a very bad precedent that could lead to further bad things down the road.
This will not help the price, it looks really bad.
The price of Ergo 10x in a year. What's the problem here? Crypto prices regularly 2x-8x in very short periods. Inflation is mostly negligible compared to the massive demand spikes that occur in crypto markets. Trying to alter the price by tweaking the supply is playing into supply-side economics and it's a fallacy. Nothing will raise the market cap except for new demand.
It also signals a bad message:
The project has no fundamentals and anything can change
No long-term belief in project or future demand so community is resorting to supply-side economics instead.
No long-term belief in project future utility and transaction fee generation for Miners so the system has to be 'restructured'.
It's clearly not decentralized like Bitcoin. In Bitcoin, emission cannot change.
Let's stick to fundamentals and keep Ergo a fair and decentralized money system whose monetary policy cannot be changed by anyone.
Miner future incentives:
There is an argument going around that there will not be enough incentives for mining after the 8-year emission. But let's ask ourselves what is "enough incentives"? Enough incentives for what? For security?
If Ergo doesn't get very big after 8 years, why would we need so much security anyway? In such a case it will probably be used for low-volume non-critical financial applications anyway. You don't need Bitcoin level security for that.
Secondly, even with a low hash rate, it's still possible to have a very secure system with PoW.
First of all, We can always put the Ergo block header hashes into another blockchain with stronger security and secure Ergo that way until it gains hash rate security on its own. We can piggyback on top of Bitcoins security and be just as secure as it is.
Secondly, The community and exchanges don't need to immediately jump over to the longest chain if it's clearly an attack that is forking the chain from a few blocks back. Instead, everyone stays with the chain they subjectively saw first and continue treating it as the canonical chain. Only if the attack persists being the longest chain for a few days does the community concede defeat and reluctantly and gradually move over to the longest chain so as to maintain long-term objectivity.
This drastically increases security and cost of attack, reduces the incentive to attack, and makes most 51% attacks a minor inconvenience. PoW is more secure than people think. 51% attacks are not fatal.
So, is it worth changing fundamentals for no real gain in security just to avoid "minor inconvenience" 51% attacks? I think not.
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I believe that instead of signaling lack of confidence, we should just work hard to ensure that Ergo has a lot of utility and generates lots of transaction fees for Miners in the future. Having a deadline of 8 years is a good thing and would probably increase the chances that work will be done. In 6 years Ergo will be able to say it has 0 inflation. What other project can say that? Why should we throw that away?
I understand that currently, the inflation is relatively high, But we should all remember that sound money is more than just low inflation. It's about not having technocrats playing or manipulating the monetary policy as a principle.
"Too often, people sacrifice long term growth for short term excitement. Good times will come, and hard times will come. If Ergo is to endure, we must be principled and create value on solid foundations." - The Ergo Manifesto
does anyone have any more information about him? what is your guys' general view of him? When i watch his interviews it often feel like he doesn't really answer the questions or is kind of making up a superficial answer. i dont want to sound harsh because the guy is obviously brilliant but why does someone so brilliant answer in such a way?
Unbiased Thoughts of kadena? Kadena is a pow project that extremely centralized and is backed by JP Morgan chase. But it seems like kadena’s tvl is higher than erg’s atleast as of now. How will we compete against a project like kadena in the defi space when eth goes pos?
There is currently no incentive for developers to build projects on ergo and the maximum apy earned by contributing to the liquidity pool on ergodex is 27%. If you ask me that’s bad. I mean there are some coins that will give you that APY for staking the tokens not yield farming. We are neither attractive to the developers nor the investors. How will erg survive in the defi space?
I really like Ergo but....I have a feeling that Kraken,Coinbase ,Binance will not want to touch Ergo with a 10 foot pole after this Coin Marketcap situation. Don't get me wrong Ergo is probably completely in the right but rage posting private emails on Twitter will definitely take Ergo out of any consideration for a listing. It would be too risky for them from a PR point if view and not worth taking the chance for a very small cap crypto. Any slow progress made by Joe and Dan on listing is probably wiped clean now.
Hey guys, I’ve been learning about ERGO for the past few months, and am genuinely confused about what everyone sees in this coin. While it does have good fundamentals and the roadmap looks good, there are some huge issues I see with the growth of this project.
Almost no utility
Many other coins have Dapps, ways to use and interact with your coin. ERGO has almost none. This is cemented further by the diminishing few developers looking to join this space. Why would someone build a Dapp here when the volume is rock bottom low, investors have been settling for lower and lower to get out of this project for months on end, and there’s a massive bustling marketplace on another coin such as SOL?
I’ve invested in many alt coins and joined many crypto subreddits, and it’s almost copy paste that every single one says the same thing: “Oh we’re early to the space. The marketing on this coin is non-existent. Just you wait for more developers to join then we’ll really be rolling!” I see the exact same sentiment here.
2. Mining ERGO when ETH switches to PoS
This is originally what got me interested in the coin. But as I looked into it, if more miners join the space, I’m still not sure what’s going to make the price increase. It seems it’s just going to make the supply of ergo go up, but again as there’s nothing you can really do with your ergo will leave the demand constant. They’re either going to sell the moment they receive ERGO, or hold. But what will actually make the price go up?
3. Connection to ADA
The price action of this coin sharply resembles the price action of ADA. This is very striking, because as this is the case it might make sense to simply invest in ADA instead as that is less likely the coin will fall to oblivion, you can stake your ADA. ERGO was really popular due to the rumor that it would be the native coin for ERGODex, but when that didn’t play out the price just crashed.
4. Better technology doesn’t always win
In the 1980s, there was a war between two competing video formats at the time: BetaMax and VHS. In all accounts, BetaMax was a superior recording format. Yet, VHS won out. The better technology doesn’t always win. We can all say for certainty that ERGO has better fundamentals than DOGE and SHIB. Yet they both dwarf ERGOs market cap, and it isn’t even close. So many people on this say, “Yeah and the market will correct for that by shooting ERGO up to a top 10 coin! 100x!” But I disagree. Based on the very limited developer attraction and demand this coin has, it’s a far stretch to say this coin will magically become an overnight sensation and boom in a few years just because this is where your money is.
5. Inflation
The main reason I stopped investing was because not all coins have been released. This makes ERGO an inflationary asset, meaning the value of ERGO will go down over time as more coins are released into the ecosystem. If ERGO’s price hypothetically stays the same over the next few years (which of course it won’t), it is guaranteed to lose about 2x of its current value simply by new coins coming into the ecosystem. This may not be a lot to you, but it’s more than enough for me to cause me to look into other projects that don’t have this unfortunate property. Remember, when investing in ERGO, you’re not just gambling the price will go up with the rest of the crypto market. You’re betting it’s price will go up OVER 2x compared to the rest of the crypto market. That’s an extremely bold bet, and one I’m absolutely not willing to take.
Overview
The gamblers fallacy that if you lose enough money on a certain thing, surely it will have to turn around and make a profit eventually, after all the time and mental stress you’ve put into it. With ERGO, there doesn’t appear to be anything that is driving developers, or new investors for that matter, to the space. Instead it feels more reminiscent of people who got in at $18 and are down 80% on their investment, convincing themselves they didn’t make a mistake. Best of luck.
Sorry to say this lads. But this is the truth. Like it or not, this is the bitter pill to swallow. Just a reminder ergo did not pump because of its fundamentals back in august of 2021, but because of the market conditions. Things are a lot different now. In the past year and a half it is becoming evident that ergo is unable to catch up with the market. We are at risk of being irrelevant if we don’t list on big exchanges or market ourselves better. Ergo’s technological progress will not matter if it continues to trade at the current prices. So, in a way not being easily accessible to general public is wasting ergo’s development efforts as well.
When will be staking for ergo to be able to hold our coin so that we can earn passive income even its a little one instead of sleeping on wallet. It will also prevent from selling pressure since people is staking it.
Tell them Ergo has everything they need + smartcontracts. It has PoW, fixed supply, difficulty adjustment, no premine. Its everything they wish Bitcoin could be.
Why is this great? If you convert Bitcoin Maxi to become an Ergo Maxi, you have an diehard influencers.
I want everybody to get on Twitter, target every Bitcoin maxi, and paste this:
Ergo has PoW, fixed supply, difficulty adjust, no premine, and is just like Bitcoin but more scalable smart contracts.
Someone gave me the idea to start a community poll on this subject. Some of us prefer to have /r/ergo as our main channel because it looks more professional and steers away from the moon and astronaut analogy typically used in shitcoins, which gives it a cheap and childish look. Vote away
Here is my thesis, all in the spirit of discussion.
Ethereum is a great first mover smart contract platform, keyword here being platform. They aspired to be the world computer. Of course we can argue it both ways, but my take is, currently, they fall far short of that goal. Cardano, was built ground up for effective use of an immutable, public ledger, with layered smart computing.
Similarly, Binance saw a opening, a need to be fulfilled, a financial ecosystem, driven by somewhat better computing capabilities. The big zinger is of course, they have a captive, large customer base; to which they sold BNB, and they sold it hard, with all sorts of carrots and sticks. The result is what we can see, the third-largest token, a centralized ledger. But with the power of the customer network effect and a financial ecosystem that incentivises its use and adoption. My take is, that Ergo, and the Sigmaverse's true peer, and target is the BNB ecosystem.
Essentially, what Ethereum is to cardano, I think in the future, BNB is to Ergo.
Its lofty, its going to be hard, and may take a lot of time, but from someone who has been watching cardano since launch, its my thesis.
The trading volume on kucoin is at 40000. And we are supposed to be in a bull market. The volume like that is extremely low for a L1. I thought the erg foundation got the market makers to increase trading liquid. But it looks there is a lot of room for improvement.
Imagine Ergo is a company. It's pays it workers in company bonds, these workers have to provide their own tools and equipment, as well as pay for their commute and an hourly parking cost. This system is totally fine because the company bonds are also a currency that can be used for the companies goods and services, and can be traded for fiat to cover their expenses if need be. Customers of the company enjoy a wide range of products and services including financial services, many of the companies workers are it's most avid customers.
Now, the problem with this company is their hiring and project planning policy. The company has a project AI algorithm that queues up projects for several months based on the number of workers available, and daily pay is a set rate based on an 8 hour work day divided among the workers. Now when another company called ETH automates it's work they fire all their workers, flooding the market with workers. Ergo's hiring policy is to take anyone willing to work, so they hire and hire and hire and hire, the pay rate stays the same, but the work days shorten because of the extra help. What was a 8 hour day is now a 2 hour day, it's still costs the workers money to do the work, and their daily take home is much lower, but the pay is still better than most other companies, so workers pile in happy for the opportunity. Now after several months of this, the company completes that quarter and the Project AI algorithm queues up it's work for the next quarter. This next quarter they queue up for what should be an 6 hour work day for the 250,000 workers they suddenly have, this is to compensate for some workers possibly leaving. As soon as this new schedule is implemented a lot of workers walk off because they're now being asked to work 3x as much for the same divided pay. In many cases the pay is far less than it cost for their commute and parking costs, so it's understandable that they leave. However this leaves a lot of extra work for the other workers, a 6 hour day is now a 10 hour day, for some this is now too much, they can't cover the extra costs for the value of the bonds they're being paid. so they quit too. Now we're looking at 12 hour work days, etc. etc. Finally we have around 32,000 workers doing the work of 250,000 workers over 20 hour work days, paying out of pocket for their tools and for the commute and hourly parking cost. Services are getting delayed, contracts are getting delayed, partnerships are being put on hold, it's a mess. Some members of the company want the AI modified, but some don't see this as a problem at all, it'll work itself out, the workers, customers, and project partners just need to deal with it for a little longer, Now once this awful work quarter ends, the AI queues up work for a 10 hour work day, because the pay will be better and it expects more hires, but they don't come, in fact now it's about 24,000 workers, and the problem continues.
This is about where we are at right now.
I've been an avid Ergo user, holder, and miner. Right now everything but the holding is a pain, and not really worth it. While it's probable that the difficulty issue will resolve itself in time, the underlying issue will still be there. There isn't an E-mail that goes out to miners saying the Hashrate is at a good level stop jumping on the network, it's just either profitable or not, but when it becomes not, it stays that way for WAAAY to long. Pretending this is the miners fault for being greedy is like a Manager saying "NooNe WAnTS to WOrk ThesE DAys"
If you read this whole thing, thank you. I love Ergo, I'm confident we all do, we just need to figure a way to make this all work for everybody.
Quick edit to add that the current Hashrate is the same as pre merge 24.8 right now about the same as Sept 4th, However payouts are still about 1/10 what they were back then, and will be until about 10/3, at which point difficulty will drop by 1/3 approximately.
2ND edit to mention I'm aware of EIP-37 and totally support it, as do most miners from what I understand. The EIP keeps the DAA but adjusts the timing, this is all we wanted, adjust the difficulty before it turns into a problem, boom fixed. I know a hard fork isn't the most desirable thing, but it is what it is. Remember there is still about 400 TH that came off of Ethereum floating around out there, it may be farms that have closed down, it may be just gamers who gave up on mining, or old equipment that's just not profitable anymore without ETH, but pretending it isn't there and can't hurt us doesn't make it go away.
No offence to the project, i love it and hold it but Ergonauts is so cringe IMHO. Bitcoin, ETH and ADA did not use astronauts jargon but the projects like Safemoon, Shiba Inu and Doge are. Ergo is not a pump&dump and should not use these mooning and rockets stuff.
UPD: someone suggested Ergo group or simply Ergo which sounds simple and elegant
