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

Jinse Finance reported that Nick Forster, co-founder of Derive, has proposed expanding the supply of the native token DRV of the on-chain options exchange in order to retain core contributors and reach deals with institutional partners. The proposal was released on Friday, September 12. According to the proposal, Forster suggests issuing an additional 500 million DRV tokens, increasing the total supply by 50%. These tokens will be allocated to the Derive Foundation (which will be renamed from the original Lyra Foundation to reflect the protocol's former name). The proposal estimates that existing holders could be diluted by up to 8.25% per year over the next four years. "Neither the Foundation nor the BVI subsidiary has a sufficient token budget to execute strategic deals at the scale required to align interests for driving protocol adoption," Forster wrote in the proposal. In addition, the proposal disclosed that Derive has severed ties with team members and investors who supported a merger with Synthetix. The merger plan was jointly called off by both parties in May this year after Derive investors criticized it for undervaluing the on-chain options platform.