I am debatting that the argument of allowing the rage quit options based on the fact that the wMemo gets burned does not matter for the people against the rage quit option. It is gonna affect the intrinsic value of wMemo therefore making the price go lower regardless. Not sure what math you have to prove me wrong.
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The intrinsic value (book value, backing price) stays the same. The math has been presented.
No rage quit option people can rage quit at anytime at a loss
The reallocating of assets would be subject to dĆ£o governance, including how much to put into what buckets. I would imagine that we need some amount in low risk farms to work idle cash, both to assure liquidity for the wshare that is accumulating and has a right to liquidity, as well as i would imagine we would invest the treasury into higher risk assets slowly. Not all the good ideas are going to come up front, and we need to keep dry powder so we can take advantage of new opportunities with short notice.
Low risk farms are probably the easiest example of where a tresury manager needs to constantly adjust and therefore needs power to do so without a community vote (within defined limits).
Currently the bulk of the assets are in mim avax and bcgg (to be distribute to holders) or in lp pairs of time or wmemo against avax or stables, unless Iām not mistaken. We can start by putting the avax and mim to work.
Capital allocation is a separate vote/snapshot. Not addressed here
How tf can backing price stay the same when you pay rage quitters out of the treasury? No math has been presented. You are gonna pay people that bought low, with a treasury that was built up by HODLers. Simply disgusting.
Literally in the post. But I guess I have to explain it.
Say there is 20,000 wMEMO w/Treasury value of $1,000,000.
Backing price = $1,000,000/20,000 = $50 per wMEMO
If half of people āRage Quitā thatās 10,000 wMEMO being exchanged at backing price of $50. So $500,000 total is taken out of treasury and 10,000 wMEMO is burned.
So you have, 10,000 wMEMO left and $500,000 in treasury. Backing price = $500,000/10,000 = $50
$50 = $50
Hopefully you can figure out the rest yourself.
Lmaoooo, there is a huge flaw in the math made. The assumption made in the math is that the price of 1 wMemo is at the backing price. Tomās cut of the treasury might not change with these assumption, but that is because you are assuming that the selling value of 1 wMemo corresponds to the backing price. If you are still delusional after this, Iāll do the math for you. But you can literally use intuition to figure it out yourself. Whales bought in at a lower price and will now increase their investment from the treasury. Money does not come out of no where. By making them sell now, we do not affect the treasury, and other people supporting the project can buy in lower, either by DCA or by joining the project now.
TLDR
Donāt allow whales to arbitrage. Make them sell now to push the price down to allow other people supporting the project to DCA or new frogs entering the project.
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It is so freaking obvious, I can even make a simpler example. A group of 6 friends buy a pizza. The pizza has 8 slices. It turns out that due to an argument, to other friends get to have 2 slices for half the price of a slice. Now each person owns 1 slice. The 2 friends want to leave with the slices they got for half the price. Obviously it wont affect the others cut of the pizza if the 2 friends leave with their 1 slice. However, the 6 are pissed that the 2 friends get to leave for half the price. Therefore, it is decided that the 6 friends get to buy back the 2 slices for half the price, decreasing their average cost. Q.E.D
Your comment makes no sense. Nowhere in my calculations do I factor in the Market Value of wMEMO. Because it doesnāt matter when youāre calculating the backing price (i.e. book value)
Backing Price = Treasury Value / wMEMO in circulation.
This is very good. Iād back this
This has nothing to do with the Exit Option for current wMEMO holders.
It has everything to do with that. Goodbye whale
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Loses argumentā¦runs away.
I won the argument. Your last sentence was āthis has nothing to do with the Exit Optionā. I responded to that. And my goodbye was to the fact that your math is flawed and favors whales.
Your spreadsheet has absolutely nothing to do with the Exit Option and you canāt even explain how it does lol. And to think calling someone a āwhaleā is supposed to hurt my feelings? hahahaha.
It literally shows why the exit option should not exist. If you allow the exit option for whales Tom will be in a deficit. If Tom DCAās after whales exit instead, he will profit. Easy. Just because you looked to arbitrage you are getting pissed now? xD
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Nah lol. Nothing wrong with my math. In factā¦he uses it himself. Soooā¦