# Positioning Liqwid for Long-Term Growth and LQ Token Appreciation

**URL:** <https://gov.liqwid.finance/t/positioning-liqwid-for-long-term-growth-and-lq-token-appreciation/1938>\
**Category:** Uncategorized\
**Created:** [November 27, 2025, 4:47pm UTC](https://gov.liqwid.finance/t/positioning-liqwid-for-long-term-growth-and-lq-token-appreciation/1938 "2025-11-27T16:47:36Z")\
**Posts on this page:** 1\
**Showing post:** 47

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**Author:** ![FlorianVolery](https://avatars.discourse-cdn.com/v4/letter/f/f0a364/32.png) [@FlorianVolery](https://gov.liqwid.finance/u/FlorianVolery)\
**Post date:** [December 18, 2025, 12:21pm UTC](https://gov.liqwid.finance/t/positioning-liqwid-for-long-term-growth-and-lq-token-appreciation/1938/47 "2025-12-18T12:21:24Z")

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**About the silent majority**

Looking at the data for the recent vote #110, approximately **1M LQ** was used to vote, while **~3.5M LQ** are currently staked.  
 → This represents a participation rate of **~28%** , meaning **72% of staked LQ did not vote**.

Within this 72%, there exists a significant group of holders who **stake, accumulate, and effectively “set and forget.”**  
I personally know several holders in this category. They hold LQ because they understand that **Liqwid is a long-term play** , and more importantly, a **strategic leverage on the Cardano ecosystem and DeFi as a whole**.

→ For these holders, what matters most is **trust and confidence in the Liqwid Core Team**.  
They are largely indifferent to daily noise, short-term debates, or governance theatrics.

On the other hand, there is a **small but very vocal minority** that tends to dominate public discourse. This group is highly active and primarily focused on **short-term advantages and value extraction** , rather than long-term protocol health.

For context, I already warned about this dynamic on **April 3, 2023** , in the following post:

> [@Transition the monthly fixed LQ user distribution rewards to a dynamic reward system](https://gov.liqwid.finance/t/transition-the-monthly-fixed-lq-user-distribution-rewards-to-a-dynamic-reward-system/1141):
>
> Summary: This proposal is to transition the LQ user distribution rewards from a fixed schedule to a dynamic emissions schedule based on the protocol’s interest revenue generated each month. Currently the protocol is rewarding protocol users based on a fixed four year schedule with linear emissions of 207,812.5 LQ each month (0.99% of LQ supply). The current system provided a strong incentive among some early claimants, especially because they received the LQ tokens at no cost, to sell as many …

Now, **2.5 years later** , events have unfortunately played out almost exactly as described, where a massive LQ inflation generated a drop in LQ price, a lack of trust in the market for new entrants, and let to the POL situation + these 2 latest votes. (yes, it could have turn out differently with more stablecoins earlier, but Liqwid does not control the game board).

Based on this experience, I am confident that the current strategic direction Liqwid is taking—moving toward financial sustainability with low LQ inflation—is the right course of action under today’s market conditions.

**Regarding OTC / Direct Core Team Funding**

Concerning an **OTC arrangement (direct Core Team funding)** you are mentioning, I have no issue organizing something similar to proposal #111 for transfers **above ~$200k** (exact terms to be discussed – I just speak for myself at the moment, would need to align internally).

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