Idea of making the wmemo a deflationary token

Hi to everyone i apologise for my english is not soo good i’m sorry :sweat_smile:
i’m suggesting this idea i found similar on other DAO projects like HEC. in my opinion is good to thinking about it.
to make wmemo more stable and valuable we could create stablecoin ( or use mim ?) and make it only mintable with wmemo, everytime the wmemo is used for the minting they are burned .
In the 2 scenarios: bull market everyone wants wmemo and the wmemo rise in price.
in bearmarket the wmemo is exchanged for the stable coin and burned. increasing the rarity of wmemo and limiting the loss caused by the bear market .
what do you think ?

In my understanding, $Memo and $Time (since they are pegged 1:1 and thus fixed to each other in price) are a couple of inflationary tokens indeed, with the buyback floor being the deflationary switch to turn on & off in case of need.

Click here for a Summary of the Mechanism:
  • The rebase comes out every 8 hours automatically,
  • So there’s an automatic increase in supply regardless of any & all external factors.
  • As a result, there’s an automatic decrease in the price of each $Memo (and/or $Time) token with the rebase-augmented total supply.
  • This periodic auto-decrease in price depending on the periodic supply increase from each rebase is the definition of inflationary; which makes $Memo (and/or $Time) an inflationary token.
  • Since $wMemo is literally nothing but a token replacement for the $Memo-Time binary with a single token, this makes $wMemo an inflationary token. This way, $wMEMO diminishes in unit-value (price of a single $wMemo token decreases) but the general effect of increasing adoption dependent on the increasing market saturation often cancels out the auto-decrease in the price.

Using a comparison of token’s market price and the token’s treasury backing in order to determine whenever there’s a deflationary need, a deflationary intervention is triggered under the backing value, which pulls the DAO into decreasing the market supply by market buying.

If any other DAO is still using the binary structure like the $Memo-Time pair instead of a consolidated treasury token that inevitably factors in the deflationary structure of the rebase mechanism, then they’re basically just behind.

For the stablecoin proposal:
  • Creating and maintaining a new stablecoin is probably the most difficult task in crypto right now, in all aspects including finance, computation, and litigation.
  • We already have a sort-of-native stablecoin, $MIM. When the DAO was fundraising last year with Olympus-style bonds, you could basically give $MIM and get $Time just like you said, although the MIM was contained in the reserve treasury instead of being burned.

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