<p><span style="font-weight: 400;">Olympus DAO has cut the OHM token’s annual percentage staking yield to 7.35% in the hope of making the protocol sustainable. The rewards were reduced after the DAO approved a governance proposal called</span> <a href="https://snapshot.org/#/olympusdao.eth/proposal/0x461aa948bcd9c889162cb740c5c878ae31133f75f7d12c0731232f9674c8aa50"><span style="font-weight: 400;">OIP-119</span></a><span style="font-weight: 400;">. </span></p> <p><span style="font-weight: 400;">In a Thursday <a href="https://twitter.com/OlympusDAO/status/1575527570686312450">Twitter thread</a> titled “Say bye to high APY,” the project clarified that while the DAO’s prior objective was to bootstrap adoption by offering very high yield, it’s transitioning to a new tokenomics framework.</span></p> <p><span style="font-weight: 400;">Olympus DAO is a DeFi protocol with a treasury that backs the OHM token. It </span><span style="font-weight: 400;">has a two-pronged approach to its operations, according to its <a href="https://www.olympusdao.finance/#how-to-participate">website</a>. The first is via cryptocurrency bonds denominated in vested OHM tokens. Here, the DAO issues OHM tokens at a discount to investors in exchange for their cryptocurrencies, a process designed to grow its treasury over time. </span></p> <p><span style="font-weight: 400;">The second is single-side staking of OHM tokens. Currently, the official website <a href="https://app.olympusdao.finance/#/stake">shows</a> this yield to be 267% APY, paid to those who deposit OHM to its single-side token staking pool. </span></p> <p><span style="font-weight: 400;">After the latest governance proposal, this specific staking yield (also called “base rate”) will be lowered to 7.35%, the DAO said. This change will help the project achieve more sustainable growth, the DAO explained.</span></p> <div id="attachment_174009"class="wp-caption alignnone" style="max-width: 560px;"><img class="has-caption size-medium wp-image-174009" src="https://www.tbstat.com/wp/uploads/2022/09/ohm-olympus-market-capitalization-550x450.png" alt="" width="550" height="450" /><p class="wp-caption-text"><span style="font-size: 8pt;">OHM market capitalization chart. Image: CoinGecko</span></p></div> <p><span style="font-weight: 400;">Six months into its launch, in November 2021, the market capitalization of OlympusDAO’s token OHM skyrocketed to more than $4.3 billion. The token's market cap has since declined 93% to $293</span> million, <a href="https://www.coingecko.com/en/coins/olympus"><span style="font-weight: 400;">according to</span></a><span style="font-weight: 400;"> CoinGecko.</span></p> <p><span style="font-weight: 400;"> Currently, Olympus has over <a href="https://www.olympusdao.finance/#how-to-participate">$266 million</a> in crypto assets from user deposits. The DAO manages these funds as a protocol-controlled treasury to back the OHM tokens as well as fund its operations. </span></p> <div style="position: static !important;"> </div><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>