Lets Move Forward: Restart The Buybacks First [BURN wMEMO w/ BUYBACKS]

[merlin]

Sifu has been a great help to Wonderland since his doxx, however, he is not willing to return as treasury manager at this time.

(Regardless of how one feels about Sifu’s past, there is no denying that Sifu is a very capable treasury manager.)

What’s the next best thing we can do for Wonderland (wMEMO) while 80,000+ Discord members wait and debate?

Let’s have Wonderland buy back it’s debt (wMEMO on the market) at pennies on the dollar and boost the value of all of our wMEMO to it’s real price (intrinsic value).

Sifu’s Main Ideas:

• Buy back the Wonderland debt for cheap right now.
• Increase wMEMO backing value for all holders in the process.
• Buy low, sell high. (This is the buy low phase)

If Sifu was here he would buy back. He still believes in it right now. Why not execute what our former treasury manager would do in the mean time, while we figure out everything else?

*Read through all his thoughts below on why he 100% supports *
(Source: direct Quotes from Sifu on Wonderland’s Discord)

Seafood (,) — 03/18/2022

Only if treasury does the buying and takes those tokens out of circulation. Each token represents around $50k debt to the protocol. I think it’s a no brainer to pay off your debt at such a huge discount.

Seafood (,) — 03/18/2022

Buying below backing increases the backing value for all holders while providing price support for those who need immediate liquidity. We increased backing by over 20% via previous buybacks.

Seafood (,) — 02/25/2022

Buybacks and continue managing the treasury, offer scheduled redemption. Market was crashing but the treasury was looking fantastic and every buy back was increasing our backing substantially.

Seafood (,) — 02/23/2022

I confirmed numbers based on my napkin math in -general a few minutes ago, it was ~$33.5k. I agree that buy backs should not have stopped, but that was promised by the TM who was voted out. I can no longer perform buybacks on behalf of WL. I didn’t stop voluntarily.

Seafood (,) — 02/19/2022

Buy backs continued until I was voted out. I still believe in it. I’m sorry that I’m no longer in control so can’t continue with that promise.

Seafood (,) — 02/19/2022

It was buying debt for pennies on the dollar. They increased our backing per wmemo from 28k to 33k over a span of weeks. Definitely not draining the treasury.

Seafood (,) — 02/17/2022

I was buying below backing, increasing our backing price with every swap. If nearly every single user sold their tokens, we would have been left with 9 figures to split between those few remaining. It was a no brainer imo.

Seafood (,) — 02/16/2022

Tokens/shares generally represent ownership. Treasury is buying back its debt. No loss.

[Quarantine]

I would like to see this as well. I really thought it would have started by now.

[cryptokececi]

This is DAO and all people are temporary. I love Dani’s and Sifu’s vision but I (Also, we) invested because I love whitepaper and the tokenomic. The team always said they wanted to bring money to treasury for investment but buyback mechanism is very profitable for holders (also value of wonderland). It’s ok we need TM for spend money but first we need to follow our whitepaper.

Please buyback and give trust to all people

[NalX]

Would you be open to something like inverse bonds or buyback is the way ?

[matjai]

Right now I’m afraid I will say no to buyback for the one main reason: Wonderland has no defense mechanism against BOTS and WHALES.

Look at the current price now. It’s 22K per wmemo. Why? because WL token are being manipulated heavily by bots and whales. We have no defense at all against selling pressure. The people/bots/whales who has rage quitted are now in a positive position to keep buying back wmemo at very good discount to dump it back when price slowly increase. Buyback mechanism will just ENABLE them to do so over and over again. Go look at dex screener trx records if you dont believe me.

Put up a mechanisms for buying pressure first, before implementing buybacks. Set sell tax for example, locked staking another example, create longer term programs like “mining” BSGG another example. These all will incentivize people to buy and hold/stake instead of trading wmemo like a whor-token.

Right now wonderland is nothing. Buyback will do nothing but hurt us if we implement now. Same with inverse bond (tomb-style).

[merlin]

Agree, let’s keep talking about it and bring more awareness to it. I think it should be our #1 priority.

We get higher wMEMO price (for optics), Wonderland buys back debt below backing. All I see is win / win.

[merlin]

Glad you agree as well, let’s keep talking about this and make it Wonderland’s #1 priority!

[merlin]

I think the mechanisms can be weighed out pros and cons, however, buy backs are easy and do not require more complicated ideas that the average frog would not understand.

Buybacks first:

1. Increase wMEMO price and optics
2. Wonderland gets a huge discount on it’s buying back its debt, further increasing backing in the process.

Sifu said it best, and I trust him.

[merlin]

Thanks for commenting.

I feel that protocols that have sell taxes and blacklist-type mechanisms are kinda too Ponzi-ish. We’re in decentralized finance, in the spirit of decentralization we should let people come and go as they please. It’s not only the whales that will get taxed (also whales are not bad guys, they are much needed for defi), but frogs too, who may have their own reasons for needing to exit (personal reasons always a factor).

How can one dump shares if they did not buy from the market in the first place? (wMEMO cannot be minted, it’s a fixed supply)

We are all free to buy low and sell high here, there is no one else to blame if one does the opposite (buy high, sell low).

[matjai]

This is just from what I am experiencing from other defi projects that I am also in.

My issue is just like RQ when people keep trying to convince me that after RQ price will be up, well currently, is not. Is it in fact much lower then ever before. So RQ failed, that’s a fact and we should just accept that fact by now.

Now you are saying if we do buybacks then price will stay up and treasury will not be depleted due to having to keep having to constantly buyback. I am tempted to agree with you but just like RQ, and without some sort of “defense” mechanism, I really believe we will have to always spend our treasury to buyback due to bots (or bad whales) that keep wanting to make money daily.

Alright, if you really believe buyback alone can bring the price up and keep it there without depleting our treasury then lets do it then. My only condition is all wmemo from buybacks have to be burnt. If we buyback and send it back to market, then I dont see the point becoz circulating supply will always be available for bots and bad whales to manipulate price.

[merlin]

RQ wasn’t only for price, but to give a fair exit to current holders based off treasury value.

I’m for burning, but Sifu mentioned it is not necessary. Still prefer burning bought back wMEMO though.

Whales only make money when frogs buy high and sell low. If the buy backs support a “price-level” there would be no buying low for the whales. Personally, I am trying to arbitrage some small cap projects that are cross-chain, however, if the price is kept constant (in our case treasury keeps it constant) there’s no arbitraging opportunity for these “whales”.

I’m simply sharing Sifu’s thoughts. He understands the macro economics a lot better than I do, but after reading his explanations over and over + a lot of side research, it makes sense. Originally I was against using treasury funds for these type of ventures (buy backs) because I was afraid it would deplete the treasury for “no good reason”.

I understand that buying back debt lower than intrinsic value is profitable for all wMEMO holders now (regardless if you are a whale or not). I hope others start to understand that soon.

Here’s a new analogy Sifu posted. It relates to buying back your debt (in this example a mortgage) at a lower price to increase overall net worth (our treasury is the net worth in Wonderland’s case).

Seafood (,) — Today at 7:21 AM

No, it’s like if you have a $500k mortgage on your house and $2mm in the bank, giving you a NW of $1.5mm, then you spend $200k to pay off your mortgage, bringing your NW to $1.8mm.

TheOne (won’t dm) — Today at 7:22 AM

Hold up here. How are you paying off a $500k mortgage with only $200k

Seafood (,) — Today at 7:22 AM

Bank is willing to sell for that price. Maybe it’s going out of business or doesn’t trust you.

[cryptokececi]

To somebody who doesn’t support buybacks because they think whales dumps: AMM determine the price with this formula:
the price of that token A is simply price_token_A = reserve_token_B / reserve token_A

Let’s think about just one person buying a token and nobody selling. Then, let the same person sell the same amount of coins; He/she can’t make any profit.

Buyback is equal to trust of treasury and the protocol.

[matjai]

The thing is I understand what you guys here are saying. I have this same argument with many frogs previously over the same effect of RQ. “RQ lets ppl leave then we have less bla bla price will go up bla bla you’ll see bla bla”. Now the price still dumps, even harder than before, and now I’m having this conversation with you guys saying we need to protect the selling pressure by building "“defense” mechanisms first but you guys saying no no “just keep doing buyback only”. The guys I was debating over last time are gone now since what they said just weren’t true, and I am still thinking, even tho you guys are making sense in theory but I will still end up right.

Anyway, it’s better than doing nothing so you guys have my vote only if we burn all the wmemo we bought to bring price back to backing.

[merlin]

That’s a good simple example. I like it - I’m not sure how to make it more simple than this.

[merlin]

Yep, agree that burning wMEMO would prob get more people onboard. I changed the title of this to reflect that.

Just fyi, if somehow the community does not want to burn, it won’t hurt as long as the treasury is not re-selling wMEMO for cheap on the market. (Can’t think why one would buy back high and sell it for cheaper though).

Seafood (,) — 02/21/2022

Burning would reduce fdv, not MC, as gov tokens in treasury aren’t considered to be in circulation.

I think the simplest plan of action, that anyone with access to treasury can do is buy backs. We can come up with more sophisticated things later. I’m not concerned about wMEMO price, since it’s already super down. Just want Wonderland to buy back it’s debt for cheap.