Purpose: reserve the value of the treasury or even pump up the treasury from the revenue coming from current investment.
The current problems:
1-The mentality of investors: I believe that most of frogs here are affected by a series of bad events happened in the past few weeks/months. And we are affected by our emotion when making decision on the DAO proposals/ trading (e.g., price of wmemo went down will make most of us frustrated and voted for the proposal which may not the best solution for the future)
2-The problem with buy-back mechanism that make the treasury being drained: There were two liquidation cascade happened in the past two weeks, which liquidated a lot of frogs and dropped the price to much lower than the backing price. For the 9,9 group, a lot of them have been ‘weaken’ and for 3,3 group, noone dare to buy more under this unstable situation. Thus, most of the buy/sell are from whales and if the system continue to buy-back, whales will DRAIN our treasury.
3-Voting matter: A lot of post in the forum mentioned that the current voting system is based on the amount of wmemo a person hold which allows whales to make decision in their favour, and suggest the voting should be by head. Both voting system have flaws (e.g., for the suggested way which count vote per head, whales can also divert their share to multiple accounts to influence the vote).
Also, half of our community’s voting power were eliminated through the two liquidation cascades. Please note that there was roughly around 130mil MIM borrowed in the first liquidation cascade, for simple calculation, assume that people leverage at 50%, then there should be around 260mil MIM (~3466 wmemo at 75000/wmemo) that liquidated. And there was around 45mil MIM borrowed in the second liquidation cascade, then it was another 1000 wmemo liquidated (45000/wmemo).
If there were 17500 wmemo in total, our frog nations have lost 25% of the voting power through the two events. Thus, we need Dani and Sifu to honor their promise to refund those unfairly liquidated way below the backing price. This way, the 9,9 frogs can join the vote and hopefully influence the voting result in the nation’s favour.
Proposed steps to be taken
- Stop trading of wmemo and time for a defined period/until we are feeling comfortable to resume
- Dani to comment on his plan to replenish the unfair liquidated frogs
- Finalise the current important proposals on new management team, remove Sifu, cancel the project, etc.