Ideas on the buyback mechanism

Time is a dynamic representative currency meaning it has a dynamic backing value that should serve as a stop loss when market conditions are unfavorable. The current mechanism of that (buyback) is bad for this purpose as it can happen only at distinct time periods which can’t be enough to reverse market trends can be gamed.

Instead, I think a ‘melt’ mechanism where the TIME/MEMO/wMEMO are destroyed in exchange for their backing price in MIM by a smart contract. The contract could be filled on demand and/or set up in a dynamic way so that the % of the fractional reserves available to melt in the contract depends on the velocity of the bank run or something like that.

Possible Improvements:
The arbitrage profit-taking from backing price now contributes to volatility, because it is on the market and done as market events. With melt, the arbitragers could decrease market volatility as the profit-taking would be outside the market and available to the melter whenever. It makes TIME deflationary.

Possible downsides:
Part of the treasury would have to be available in MIM or easily made available for the melting mechanism. Worst case bank run scenario maybe becomes possible and the treasury is drained in a panic.

What do you think?

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Maybe a solution will be to let anyone involve in the wonderland project to stack currency of their choise (avax, usdt other stable coin … ) to be use when the price fall too much under the backing price.

People doing that can be reward with incentive plus they will get wMemo at a price below the backing price value.

By doing that it will be harder for people to push the price of the token down.

In all honesty I don’t like automated buybacks. Buybacks should be a strategy used when there is a real benefit to the ecosystem to do so. Buying back to prop up the price is just lining the pockets of whales.

I would much rather any wMemo currently been bought back redistributed to holders or burnt.

Going forward any DAO approved buybacks should just be burnt. I know this seems alien to some people but reducing supply is a good thing.


yea this is kind of the point of the melt mechanism I’m proposing,
it also gets rid of much of the fud because anyone who’s afraid can exit at any time and their fear doesn’t translate into a market downtrend

I don’t think that this kind of choice would be plausible, I mean you only care about the guarantee of value, you can swap to anything you want to when you get it.

This would also make it so anyone that wants to leave could leave, resolving the current 50/50 dissolution stalemate.

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