Klima DAO investment potential
Originally posted on the/Klima subreddit here
$KLIMA dropped quite a bit these last two days and folks are freaking the f*ck out… here’s why you shouldn’t.
Daily compounding — few people actually understand the true power of this (myself included, probably)
If you got into Klima DAO bc of the sky high APYs, you will never realize any kind of APY unless you stay locked in for a year (hence the Y at the end of APY) — dipping out and selling when the price of the $KLIMA token goes down is child’s play. And if you dipped, it likely means you put more into it than you should’ve anyway.
Let’s say you dropped $1k into $KLIMA today
At the time of writing this, you’d get 1.307 $KLIMA tokens
Now, we all know the sky high APY of any project will not sustain for very long so I don’t really want to use Klima’s APY today for this projection
So let’s take $OHM’s
With $OHM, you earn 1.011745% per day right now — the project started with a much higher APY (click this link and scroll down to check out OHM’s APY over time)
OHM’s APY today around the lowest it’s every been (still over 6,000% though)
So… for this $KLIMA example, let’s say you only ever earn 6,000–7,000% APY
Remember, you started out with about 1.3 $KLIMA tokens
At *only* (LOL) a 6,000–7,000% APY, you would have 3.58 $KLIMA tokens after 100 days
You bought your $KLIMA today for $765
In 100 days with 3.58 $KLIMA in your hands, you could withstand a price drop down to about $279 WITHOUT incurring a loss.
3.58 $KLIMA X $279 token price = $998.82
(Please know that there are gas fees here that I’m not accounting for — trying to keep it as simple as possible)
After 200 days, you’d have 9.79 $KLIMA tokens
If $KLIMA was $250 per token after 200 days, you’d have $2,447.5 (and you only invested $1k)
And after 300 days, you’d have 26.78 $KLIMA tokens
If $KLIMA was $250 per token after 300 days, you’d have $6,695 (and you only invested $1k)
Remember, this is if the token price were to go down to $250 — OHM dipped a little further than that, but it also rebounded wildly
After 300 days, with 26.78 $KLIMA tokens in your pocket AND a $KLIMA token price of $1,100 — your $1k investment would turn into $29,458
Just. For. Holding.
That’s the power of daily compound interest.
*If any of my math is offer here, please, please let me know). I’ve been heavily noodling with this over the past few days. I just don’t see how you can lose if you’re early enough — except (of course) if the entire project just tanks and no longer exists.
We’re so so early — dropping out because of price action today hurts your family’s future legacy
I don’t know if folks truly understand the opportunity in front of us
And the fact that you’re here in a Klima subreddit? Well, you’re ahead of 99.9% of everyone else. You have a gargantuan opportunity here — don’t squash is bc you’re scared of a little price drop. Crypto isn’t for the faint of heart as it is lol.
The power of daily compounding almost completely protects you from price drops — time in the market trumps timing the market.
Get your position, stake it, and wait. Your life will be completely different a year from now.
I’m not a financial advisor — do NOT take this as *advice* (even tho it is lol) — it’s really just math
Warren Buffett told us that the 8th wonder of the world is compound interest — it’s time to play ball
Last thing — all of this math is based on what OHM’s current rebase % is today. I didn’t want to use today’s Klima rebase % bc it won’t remain the same over the next 300 days. If you’re in $KLIMA today, your projections will be far higher than what I walked through only bc its APY will remain well above (at least for a bit yet) the 6,000–7,000% APY example used here.