I’m excited about the upcoming technology migration to ZEN 2.0, and the potential this unlocks for new opportunities within our ecosystem. I’d love to get community feedback on the concept of a token split.
Why Consider a Token Split?
Much like how major companies such as Alphabet (GOOG), Amazon (AMZN), Tesla (TSLA), and Shopify (SHOP) have executed stock splits to make their shares more accessible to a broader range of investors, the same principle could apply to ZEN. With a fixed token supply of 21 million (identical to Bitcoin), the price per token can sometimes feel high. A token split could make the price feel more approachable, while keeping the overall market cap unchanged, thus expanding participation within our community and possibly increasing liquidity.
Key Psychological Factors Driving Stock Splits:
Price Anchoring and Investor Perception: In traditional markets, investors often judge the value of a stock based on its price. A stock split makes shares appear more affordable, leading to increased participation. The same psychology could apply here—by lowering the token price through a split, we might attract new people who perceive the token as more accessible.
Mental Accounting: Just as in stock markets, users in crypto often think in terms of the number of tokens they can buy. A lower per-token price could make ZEN tokens more appealing, similar to how companies like Tesla saw increased retail activity after their splits.
Liquidity and Trading Volume: Stock splits generally lead to increased liquidity as more people trade lower-priced shares. A token split could do the same, fostering greater activity within the Horizen ecosystem, which could strengthen overall market confidence in our token.
As we migrate to a new tech stack, it seems like the perfect time to consider this.
Would love to hear everyone´s opinion on this.