Objective:
Provide a stable price floor to close the gap between market price and backing price.
Community Interest:
- I would like to see a formal proposal
- I am not interested in seeing more
High Level Details:
Strategic buybacks have historically been proven a useful tool to increase backing price while providing a good price for those who wanted to exit. However, since the beginning of 2024 there’s been an exceptionally high discrepancy between market price and backing.
Quarterly redemptions, previously used to close the gap between market price and backing, have been removed in favor of buybacks. Right now buybacks are too small the gap is too big.
I propose to provide a price floor at $250: for those selling, it allows exiting with a small price impact; for those remaining, it still increases the backing price.
At the time of writing backing price is higher than $350 and market price is $178.
Provide Low Level Details:
To achieve a price floor, the team will set aside 1M USDT from the treasury, strategically trading the best assets if the treasury doesn’t have 1M USDT. A limit order will be set on 1inch on Ethereum mainnet to buy VOLTA at 250 USDT, using all the 1M USDT. If the limit order is completely or almost filled, the process will be repeated until a total of 5M USDT have been used.
A new vote can be cast again to use more than 5M USDT from the treasury to provide a price floor, using the same methodology.
Please note that the price floor is up for discussion, we can decide to set it lower or higher than $250.
Since a DAO Discussion is meant to introduce a proposal, not all information may be available at this stage. The discussion should be used to measure the community’s interest in what is being proposed. If the minimum requirements are met, it can be submitted as a Request for Comments.