The Rebase system is part of a now irrelevant fundraising strategy and to hold on to it is unnecessary and even detrimental. For the DAO to move to a state of complete transparency, this old model must be completely removed and a complete focus must be shifted to the new revshare model.
-Although more of a minor concern, the end of Rebases means the end of Rebase sniping. Rebase Sniping and Sniping bots benefit from market inefficiencies much in a similar way that Arbitration bots do. They benefit however, at the cost of the overall DAO health, creating unhealthy bursts of sell side pressure on the token at regular intervals.
-By removing Rebases, there will no longer be any confusion as to what the value in the DAO is. It is my humble opinion that the crazy APY has transformed from an attraction point to a point of skepticism, and by shifting to a complete focus on the real value of the DAO, that is the SPAC/VC promise, investors know exactly what they are getting when they invest. Transparency and Clarity is always better than temporarily high levels of investors, who will inevitably have their trust violated when they later realize they don’t understand what they were investing in.
-The removal of Rebases means that long time holders can track their true value without worrying about market inefficiencies. The general trend is that rebases temporarily increase holder wealth, then the market corrects based on the increased supply and temporary gains are shattered. The true value of the token does not lie in the rebase system at all, therefore it is our responsibility to tie its value to what it is, a governance token, and a promise at a share in future revenue sharing, and cut the association with the Rebase system.
-It is possible that in the period before Revenue Sharing but after Rebasing, there will be no immediate value to investors and it will appear as if the project has no value. I believe this to be a valid concern, but I also believe this can be negated by phasing out the Rebase system in a measured way. Which leads me to…
-A good plan needs to be gradual, but not necessarily slow, and I emphasize the difference between phasing out Rebases in an incremental fashion and phasing them out in a slow fashion.
-First foremost, there needs to be a laser focus on releasing the first bits of the revenue share system, once the Revenue Share system is released, there is no reason to delay the death of Rebases.
-Until then, the APY needs to be decreased dramatically to shift the focus away from itself as a store of value.
-Alternatively, an extremely short term solution could be the temporary awarding of MEMO from preexisting, treasury held TIME. Although it would be confusing, these temporary rewards could even be distributed as wMEMO, as the DAO will be agreeing to award actual, non-inflationary shares of the project.
-Ultimately, the transition period should have a focus on doing the bare-minimum to keep new investors coming. Outside of this use, the Rebase system needs to be phased out as soon as possible.
I look forward to hearing all of your feedback,criticisms, and refinements. I hope that we can move this forward as a proposal, and I of course appreciate the value of compromise. I do hope that we can ultimately get rid of this useless system, as well as the misconceptions that it is a machine of actual value distribution.
- Phase out the Rebase System
- Keep the Rebase System