I have a few questions and and suggestions to make (I am usually a stock investor and only since November I’m in crypto so maybe there is something that I don’t understand or get wrong so please correct me) specificly to three points:
1. Buybacks
In the proposal is stated that there should be an automated buyback introduced and later eventually phase out buyback?
Why should it an automated buyback be introduced?
Usually markets are very efficient only in exceptional circumstances (on tops / or bottoms) a company/project is over or undervalued and overtime the market corrects that by itself.
If a company is overvalued the price will usually go down if company is undervalued price will go up over time.
I don’t think that buybacks are nessecary at all.
2. Burn Tokens from Rage Quit Option
Although it sounds great in theory to burn those tokens and increase booking value per wMemo it will also it will decrease the treasury. I donÄt have the exact numbers but I think there is around 500mm worth of assets in the treasury that are non wMemo/time/memo.
If we take the unwind vote as a refernce there will be only 275 mm USD left which means less money to invest — less profits — less revenue share ---- lower price per wMemo (meaning that one day the price of wMemo will be one day based on the actual income it produces)
I would suggest to burn the complete liquidity that is in the treasury. and use the wMemo from the rage quit options to sell to get new money into the treasury. Of course that can’t happen all at once cause it would cause too much price pressure but step by step.
3. Adding more liquidity
I understood so far that the liquidity is added for two reasons
*1. to not have big spread *
2. to give people the option to go in and out of the market whenever they want
This option is definitley needed when trading currencies for various reasons.
I see or better I would like to see wMemo more as stock of a company that I would like to own.
As such I think wMemo could benefit if its only traded peer to peer without an AMM
If Wonderland will be able to create significant returns and more people want to get in because of the revenue share and loyal frogs hold their position price will go up significantly. But there is also the risk that when Wonderland will not be able to create revenue and more people want to sell than buy that price will drop significantly
Other suggestion
Although I agree that the revenue share at the beginning should be more like 30% and 70% should be reinvested. I believe there should be a yearly vote if it should kept that way or the revenue share should be increased.
