In the event DAOs go below backing, typically they do a buyback with treasury funds. However, this is has had little effect on supporting their price. They end up collapsing further. Take for example RUG. RUG is massively below backing, and while it was below backing: their founder poured millions to try and bring it back up above: to no avail.
For a DAO to recover successful from such an event, it is important to create an arbitrage opportunity that would cause positive price pressure. Buybacks have little effect on the price, and only delay the problem. Buybacks just lower the backing… Its like taking a payday loan to pay off another payday loan.
Instead, we should induce arbitrage by making assets redeemable when the market price is below the backing. This would create buying pressure by causing people to buy TIME for cheaper on the DEX, and redeem its assets directly: profiting. Better yet, bots would most likely take full advantage of this and the backing would be extremely supported.
The arbitrage opportunity creates external forces that maintain the backing. This same concept applies to TOMB and its forks in a similar way.
I dont think it is likely TIME will go below backing, nor is this a necessary system to be introduced currently. But, it is something I think should be considered. When you use funds from inside the system for a buyback: it dont work.
tldr; we redeeming assets when below backing > buyback below backing b/c arbitrage uwu