S: In the speculative sphere that is crypto, I don’t think it will be hard to get people initially interested in the protocol itself. Everyone loves the idea of earning/keeping more cash. People want their money to continue to work for them, so adding another derivative to locked tokens has already been shown to work by other ‘liquidity mining’ using liquidity tokens.
I think the idea of keeping the liquidity tokens and paying out Aqua is so cool. Then aqua will just be able to gain fees indefinitely.
W: What’s stopping someone from just dumping all the aqua that they get? From what I could tell, there doesn’t seem to be any reason to continue to hold/use it. Seems more of an exchange service that will cause a type of hyper-inflation to Aqua. I personally don’t seem to understand how it won’t go into hyper-inflation, or what I would use Aqua for, besides selling at this point.
O: (i think this is a good idea ->) Aqua protocol could be used as an ‘on-boarding’ mechanism to an Aqua ecosystem (a coral ‘reef’ if you will ). Similar to how Apple gets people into their ecosystem (like an iphone). But the amazing thing that apple does is keep people in the ecosystem by facilitating and promoting its other products by increasing ease-of-use, benefits, ease of interoperability, consistency, etc. Then it makes the user have a hard time leaving the ecosystem because everything is already there! Aqua could do something similar using its token. Whether it interoperates with xio, xio index fund, flash, creates its own ecosystem based off the primary entry point (if there is a way to limit use by only tokens that were just minted by the Aqua protocol and not bought from an exchange), or just creates an ecosystem of simple uses for Aqua itself; just something that keeps people in the Aqua/Aqua ecosystem. (of course that would take a lot of development work, etc. and might cause the team to be spread too thin/not focusing on core strategy)
T: As other people have mentioned, fees, alternative tokens, doesn’t reach the network effect to naturally grow and be utilized, etc. But I see the inability to operate (or large development/maintenance overhead) with future updates to ETH protocols or the respective decentralized exchanges (e.g. Uniswap changing protocol from v1 to v2). If Aqua doesn’t have a way to quickly handle those types of updates or changes, Aqua would be forced to be deprecated relatively quickly or be unsustainable.