Re: Ilya (an email thread)

This is a response to Ilya over email about DP.

1: Do you plan to begin again, next iteration?

there are no plans currently. An iteration would imply an improvement on the current fractional stable coin. We realized after 3 different tries that an improved algorithm is simply not an answer. Indeed, one of the learning points can be distilled that adoption >>> algorithm of any sorts. Adoption is a much more difficult path in part due to our anonymity and lack of resources.

2: Why did you disappear?

we did not have sufficient resources (human resource wise) to continue as the team dissolved after the latest launch of USDf. This was mostly due to decreased morale from a lack of project success and a payout to usdx v1 users and usdf v1 users (recall the CR and death spiral), which effectively liquidated our entire treasury and balance sheet.

Because of both, the team decided to take a hiatus to evaluate the landscape and study what may be a viable path forward. After consulting the entire space, and getting much pressure from the community to relaunch v3, it because obvious that adding a new algorithm or launching on a different EVM compatible chain was insufficient. New algorithms, new chains are simply cosmetic and do not address the root cause of success in a protocol. We could have happily done a V4, V5 but the probabilistic outcome would have been the same as the status quo, if we did not improve on the adoption of DP.

Adoption is a hard game because it requires a lot of outreach and resources. Again, we would be competing against USDC, USDT, DAI and many other incumbent players. Being anonymous, while advantageous in many respects, also hurt our efforts here.

To be clear, we could have been more communicative as a team but we also needed time for ourselves, as we were very burned out from consistently shipping new code. Sometimes one needs to step outside the trees to see the forest.

3: Who are you?

we are originally a group of early Bitcoin miners, who are and still big fans of Robert Sams. We stated from launch that we were looking to create a working implementation of his white paper, which resulted in USDx.