Option 1 to avoid dilution is welcome
Please correct me if I am wrongā¦
If someone is selling and pushing the price down, Sifu is not always there to buy before they re buy.
I donāt think I understand the multiplierā¦ If you can explain me like Iām 5, that would be great haha
And with examples pleaseā¦
Sifu will only buy when the price dips below the backing price, other than that the price will be influenced by the market forces.
I think we all know that this discussion should turn into an actual proposal, so can we get this to the next step already? (Posting a [RFC] Request for Comment)
Burning the wMEMO tokens the treasury is buying back (and already has bought already)
will drive up and stabalize the backing price.
There will be less wMEMO the Treasury has to back ā higher backing price.
Bought back tokens will be taken out of circulation ā backing price stays stable, even though buybacks happen.
The current market situation forces a lot of us to sell at a loss - in order to not get liquidated.
There are still a lot of open leveraged positions on abracadabra, which means what we are experiencing right now could keep going on for quite a while. (especially since the whole market seems to be on a downwards trend right now)
Stabilizing the backing price should remove a lot of selling pressure, as the risk of further liquidations swindles.
Oh, and also it would generate some hopium and a possible upwards-trend, seeing the backing price going up.
I personally, just want my position to survive until we moved to revenue-share.
If people realize, that they can get about 2,000 $ in Assets per month by holding just 1 wMEMO, things will change for sure.
9 Likes
I love it, 1 option. Where to vote?
I agree with the rewarding long-term (3,3) holders, but also think we should have an exit sales tax to try and offset the manipulation going on. Get all of this in place before any burns
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Absolutely option 2 prevent bad guy take advantage on option 1
Both options are legitimate and offer a completely different approach in terms of psychological effect.
Option 1 - Preventive/growth approach that aims to achieve deflation:
- This option is positive for the investors/stakers in the long run, as a deflation rate + success of the protocolās investments would put pressure on the price - higher demand, less offer (organically everything should tend to be staked). This would increase exponentially the value for long term stakers and would put to practice some fundamentals of game theory - stake or sell? Eitherways, long term stakers always win.
The main psychological effects of such a policy is of: sustainability, growth and confidence.
Option 2 - Reactive approach/defensive mechanism:
- This option is positive to generate higher short term results in case of serious manipulation of the price. It will tend towards the same effect of option 1, although itās not structured, doesnāt follow a reasoning and might or might not achieve the same results. I would call it a reactive mechanism. Itās there, we stakers like the security it brings to our investments + puts pressure on manipulators.
The main psychological effect of such policy is of security.
I believe one option doesnāt invalidate the other (I may be missing something) - they are complementary for the protocol. I would propose to develop both and see how can they be implemented together in a sustainable way
3 Likes
I definitely agree with this, look and the titano model, taxes for buying and for selling, I believe that will help price dilution as well
1 Like
I vote Option 1. Scheduled burns will bring deflation to wmemo.
Both options proposed and several jn comments have merit.
Option 2 though feels the most solid as a next step. Burn $wMEMO bought during liquidation.
A combination of options 1 & 2 sounds good.
I vote option 3 āDo nothingā.
I must misunderstand something here. Liquidation brings revenue to the Wonderland treasury, right? So if we burn the wMEMO purchased by the treasury, are we not hurting the treasury instead?
3 Likes
Option 2, burn baby burn, create deflation. $wMemo APY is rewarded in price increase, not token amount ATM? Even with 70/80,000% APY the price isnāt going up. New investors will just think this isnāt worth investing in. The APY needs to mean something. New investors and (3,3) investors means bigger treasury, more projects, happy investors.
Also can we know more about whatās happening with the distribution of BSGG please (another topic)
1 Like
I can agree with option 2 however I also like @Syn and @DigitalFund thoughts. I believe we should split buyback liquidation into three actions
Action 1: 33.33% of the buyback should be burned immediately. This will create a spike plus a buzz which is a great look for our future CEX listing especially if consistent (idea from @DigitalFund option 4 suggestion)
Action 2: 33.33% of the buybacks should be airdropped to holders. This will create the balance needed for the long term holders that purchased around the ATH and gives more incentive for people to continue to hold (idea from @Syn suggestion)
Action 3: The last 33.33% should be burned via a scheduled burn that the DAO can agree upon throughout a 3-6 month period.
10 Likes
A couple of ideas (short versions, deeper explanation below):
DONTs
- Stop diluition. Average investor mindset is here for the APY and see your XXX asset increase overtime, not wMEMO. As much as I like wMEMO, you need to think about this to not hit the iceberg in front of you.
- Stop investing in the companies. Stop going for a VC model, ffs. Psychologically, this also creates new confusions around new tokens and new airdrops (it has been already too confusing to think about SPELL, sSPELL, ICE, TIME, MEMOā¦guys, come on).
You donāt have the expertise to pick and choose a good trading card company and a betting crypto company which is the key aspect to being an āabove the average VCā (see deeper explanation below)
DOs
- Start distributing the ājuiceā of Wonderland: the returns you generate through your excellent financial strategies. You are GREAT at this. Letās stick to it.
Longer versions of the previous points:
As much as I appreciate your team and what you have created so far I think you have made so serious wrong assumptions about the TIME/wMEMO.
Stopping dilution while it is rational, it is not understood by the āaverageā investor in the project. And to be fair, you need to stick to your current investorsā mindset a bit longer, no matter how good the strategy is. I think people are in Wonderland because they see their TIME token increase across time. It feels āgoodā to see your assets growing. It has been highlighted many times in comments and even during last Danieleās AMA by some enthusiastic supporters. Personally, I donāt care and I trust you 100% on this but I am trying to play the devilās advocate here.
You have been switching too fast to a BTC/classic model in crypto which is: you hold the asset and you check the price going up and down. Thatās not the deal that put investorsā money into Wonderland. All the DAO are doing this and perform really poorly (Metaverse Pro, Olympus, Jadeā¦and you). You are all doing the same mistake because you are honestly acting too rationally. Degens are not rational and you should know this better than anyone else.
What you have been āsellingā is something else and to be fair you should stick to this and SLOWLY change the ārhythmā. I understand what you might say: āwell, itās time to move on with a less speculative mindset on this investmentā but I think youāre pulling the strings too fast.
Given this investor mindset, stopping dilution I think (and I might be wrong) will cause a drop in the APY which is going to further badly impact the price.
āFrog Nationā is cool but letās be clear: people are into this to make money. So letās make us some money RIGHT NOW. It has been said that on the UST-MIM leverage on Abracadabra you make $100,000 a day. Get that money and give it back to wMEMO holders on a monthly basis. Simple concept to get through investorsā minds and it increases the confidence in the project.
I agree with Andre Cronje: stop fucking doing XXX things. DAO should have one purpose only. Do not invest in potential companies, manage the DAO like a pure market-based hedge fund/ETF. Use financial strategies, leverages, trade returns, Iron Bank, Anchor, investments in good crypto projects (eg. FTM). You are good at this, you are not experts on card business or betting companies. You are not Elon Musk or Bernard Arnault. You are Wall Street guys in the crypto spaces. There is nothing wrong with being very good at ONE thing. You are not product guys at large. You are excellent financial strategists and financial-product people. Do not try to be someone who you are not.
Final thoughts:
Do not stop dilution. Stop the VC ideas. Start distributing returns from your financial tactics (like the UST-MIM leverage on Abracadabra) or at very least, start to talk about it so the āaverageā degen can get how you make MONEY. We are for the MONEY, not some trading cards or metaverse gaming with a failure rate of 99%.
Letās go.
12 Likes
Option 1 - burn rokens
āā¦during LP migration we had TIME in excess thst previously was in the market accounted for the Mcap. This can be burnedā danielesesta
Turn them all into One NFT and hold it for collectable memorabilia, digital souvenir.
Letās call it The Time Stone, it will be one of many Infinity Stones, remnants of the coming singularity, representing the element of time, whagmi think of my idea?%
We can hold this NFT as our 1 Logo IMG Mint & place it on the Homepage?
I think when revenue model kick in after that burning will work for us if we stop daily rebase that time monthly burn will give us more benifits so i will hold option 1 .
And if we burn right now this is the best time to burn because price of time has hit the lowest point so treasury loose less money and increase internsic value of memo will increase as price gose up
1 Like
How is destroying treasury holdings and reducing the treasury balance a good thing? If the price of $wMemo goes below the backing value the dao buys them back maintaining the treasury balance. If you destroy them the treasury balance goes down causing the collateral backing to go down too. If the collateral backing goes down so does the floor where the dao buys back thus removing price support for $wMemo.
This looks like a temporary manipulation to pump the price so that people can dump their bags.
4 Likes