Derive Plans 50% DRV Token Minting for Institutional Growth

Derive co-founder Nick Forster has proposed minting 500 million new DRV tokens, increasing the total DRV token supply by 50% to 1.5 billion. The Derive Foundation will use the additional tokens to hire talent, incentivize contributors and secure institutional partnerships. This token dilution will cut existing holders’ share by roughly 33%, igniting debate over its impact on investor confidence and token value. Forster argues the supply increase is essential to compete with platforms like Deribit, now owned by Coinbase, and to accelerate deals with liquidity providers and custody services. Critics warn that expanding the DRV token supply risks eroding market trust. The proposal follows a scrapped merger with Synthetix after investors pushed back on valuation, leaving the community split over growth ambitions versus dilution risks. At a current market capitalization of $28.5 million, the minting plan would allocate 46% of new DRV tokens to the core team under a four-year vesting schedule and a $150 million market-cap lock. Traders should monitor governance votes and distribution timelines, as this decision could drive short-term price volatility and shape long-term value.