Goose-review: Seigniorage Shares(SHARE)

5 min readJan 11, 2021

Goose-review is a blog of my personal opinions and speculation about presales and tokens that are actively trading on Uniswap and other DEXes. None of the things I write are financial advice in any way, shape or form and I do not take responsibility for any damages anyone sustains as a result of reading this publication or any inaccuracies or misinformation contained therein. I am by no means an expert, so if my articles include inaccuracies, please do let me know and I will happily rectify them.

What we are discussing today basically equates to your chance to own a money printer with a name I still struggle to pronounce correctly.

What is $SHARE?

The SHARE token is part of a larger ecosystem and truly lives up to its name as it takes a share of the profit of other parts of the ecosystem. The SHARE token currently shares its ecosystem with USDX and XBOND, together they form the Dollar Protocol.

The ROI of SHARE is not very predictable, but in exchange for this the token is one of the lower-risk investment strategies of the DeFi space that can still net you a very healthy return on investment. The beauty of SHARE and the Dollar Protocol is that there are several strategies you can pursue, althoug I will only discuss simply buying and holding SHARE in this review, as the others would warrant a review of their own.

In the absense of great memes, here’s a picture of the website.

Tokenomics

Total supply: 21,000,000 with currently ~14,000,000 in supply according to CoinGecko.

How is the token used?

I assume you already know what a rebase token is, but for those who do not, a rebase token is essentially a token that modifies the supply to maintain a stable price. In the SHARE ecosystem, USDX is the rebase token and SHARE token holders simply get a percentage (15% at the time of writing) of any positive rebase. This way, they only have exposure to positive rebases.

USDX is, unsuprisingly, pegged to the USD and currently negative rebases occur when the price of USDX is below $0.99 and positive rebases when the prices is above $1.01. This does mean that for the ecosystem to remain in motion, USDX market activity is needed (the purpose of SHARE is to generate return, after all).

Given current high fees on Uniswap, which is currently the only exchange for USDX, it is likely that SHARE will have an easier time reaching its potential if ETH gas fees drop to an affordable level, possibly when ETH 2.0 is finally live.

The SHARE token is also the governance token of the Dollar Protocol ecosystem, and can be used to vote on proposals.

What is in it for the devs?

Even though this is quite an important question to have an answer to, I did not find a certain answer. According to one friendly community member, the team has an allocation of the SHARE tokens that is locked up for a period of 10 years. That’s of course some sort of incentive for the development team to keep going with the protocol, but it does leave me with a slight concern if there will be enough funding to achieve all the development and promotional goals.

If the developers receive rebase rewards for those locked up tokens, this solves some of the funding puzzle, but can slow down the expansion of USDX somewhat as well.

Trust

SHARE has been around since September, so it has already lived past the point where an ordinary rug pull would occur. The developer is still anonymous and I have yet to see him active in the Telegram. From what I read from him however, it seems this man has a genuine passion for the project and understands very well what he is building.

The reason provided for being anonymous is basically the same as most DeFi devs have: To avoid the possibility of being marked as a security and having a lot of trouble, which I deem a very reasonable concern.

Even though it does not necessarily guarantee safety, the code of the Dollar Protocol has also been audited by Certik. Overal, I trust this project and its team, but that is just me personally.

Development

There are several developments coming to the SHARE protocol as it grows, which will make holding SHARE tokens more lucrative and make the token a more inviting investment.

In the short term we will see the release of xEUR and xYen, which are rebase stable coins based on (obviously) the EURO and YEN. This will provide more upside for the SHARE token, as it will have governance over and receive rewards from, those other tokens in the protocol.

In the longer term, this leaves room for potentially adding a vast quantity of other assets, such as gold, silver, Rubles, Pesos and perhaps even pegs to traditional stock market shares to generate yield for SHARE token holders. There are of course also other use cases for stablecoins, such as perhaps lending, that can be implemented in the future.

If you take into account the amount of assets that SHARE token holders may be profiting from in the future, it is hard not to be bullish for the long term.

Branding

Dollar protocol’s website has a reasonably nice looking design, and the icons they have for their tokens is also fine, but it all feels a little bit basic. You will not really feel Dollar Protocol’s brand identity that much just yet, but this may very well change over time.

Community

The community around SHARE is not very large yet, despite recent growth. There seems to be a general lack of understanding about seigniorage protocols in the general crypto/defi community as of this point, and there are not too many big influencers involved in SHARE.

Perhaps tied in with the absense of a true brand identity, the meme game for SHARE has yet to really get going.

Rating

In my opinion, SHARE has enormous potential, but simply is not living up to it due to both market limitations (uniswap), some funding concerns and lackluster branding.

As you may get from this review however, all of these things present a potential for upside as well, given that ETH fees dropping, clarity about funding and a stronger brand identity could all help SHARE unleash the beast I personally believe it could be. For this reason I give it a 7/10 and consider it a fantastic medium/long term hold. It is one of my bigger bags after all.