Proposal - Strategies to avoid a full wind down and move forward.
Name: Proposal - Woxit - Strategies to avoid a full wind down and move forward.
Scope: Strategies to allow the investors who wants to get out and at the same time allowing investors who wants to remain to do so.
Objective: When the majority of the frogs want Wonderland to continue, with a new treasurer and better and open communication, there is no point in continuing along with investors who want to leave. To keep everyone’s interest in line the following strategies are proposed.
Provide a High Level Overview: Wonderland treasury was mostly built by small and medium sized investors who believed in Danielle’s ideas and vision. The recent incidents have divided the community. It is hard to move forward as it is. It is better to provide the options for leavers so that the investors who want to remain can do so and grow the community further.
Provide Low Level Details: Currently the leavers fall into two categories one who invested into Wonderland earlier on and two who invested after dissolution announcement / sifugate. These two category of leavers cannot be compensated equally as that will put the long term investors in a huge disadvantage as the trader/arbitrators who invested after the announcement will consume a major portion of the treasury.
Proposed steps to be taken below.
Remove all Liquidity Pools for wMEMO and Time.
This will stop further purchase of wMEMO and Time so that the leavers will not be able to take advantage of rinse and repeat strategy after the buy back.
Create a page on wonderland through which treasury should handle all the buy backs directly.
To avoid any disadvantage for long term investors the buy back should only provide the backing price for those who have invested prior to the dissolution announcement / sifugate. Those who purchased after the announcement should be paid their buying price.
Provide all the promised airdrops and profit shares
Once the window for leavers is elapsed, provided all the promised airdrops and profit shares for the long term investors based on the January 10th snapshot (as promised earlier). This will include the leavers as well as the investors who decided to remain.
Create Liquidity Pools for wMEMO when the price is in par with backing price honoured for leavers.
There will be a small period where only the investors who remained will be able to make purchase of wMEMO directly from the treasury. Create a page for the same. The people who remained will be able to make purchases with the share they received above if they decide to.
The Treasury’s current investment revenue along with the new investment from the remained investors the price of wMEMO should be re-calculated by dividing the treasury equally by the wMEMO held by the investors. This calculation of price should also include the team share holding. Based on the calculation a date should be fixed when Liquidity Pools can be created for trading. This calculation is needed so that the leavers who left taking the backing price will not be in a huge advantage in buying back when the trading is opened for all.
Business and/or technical requirements of the implementation of the proposal:
All wMEMO and TIME Liquidity Pools to be removed and brought back to the treasury.
The development team will have to create the necessary pages for buy back based on investors date of purchase. They don’t need to calculate all the purchases made by the investor but only the ones made after the dissolution announcement/sifugate. The prior purchases to be treated as long term and should be honoured by the backing price.
Create a page just for the investors who remained to make further purchases. This should happen prior to recalculating the price but after the time for leavers to leave is elapsed and the direct buy back page is removed.
Calculate a date to reopen trading by creating Liquidity Pools after recalculating the price for wMEMO.
This is exactly how we need to move forward. All trading needs to cease and the redeeming of tokens must now be handled by the treasury only.
People who want out can sell at market price like everyone who wanted out before.
None of us were ever entitled to the tokens in the treasury, why would we be now ?
The token is only for the hodlers who purchased before the dissolution was announced. There are few frogs who want to leave, but as they purchased in last October, November period they are entitled for a share of the profit. It is clearly mentioned in the proposal.
I think you misunderstand my comment.
This is the section I am talking about. Especially for those buying after the annoucement
We were always entitled to the tokens of the treasury. In fact, we were always entitled to a backing price. Not honoring the backing price will bring even more uncertainty for new investors and will make this protocol look like a joke changing promises every other day.
I’m happy to be proven wrong. Please show me where it says we were ever entitled to any of these things.
Backing price, maybe, sure. Treasury tokens ? Never seen that one. The protocol owns the tokens, not the holder. Holder have a governance token.
As far as looking like a joke and changing promises… I wont even comment.
Most of the traders/arbitrators who purchased bought way below the current market price, it is due to their purchase the price went up. They are in the hope of us honouring them with the backing price. This is why I am proposing we will only pay them the price they paid, which is way below the current market price.
The treasury tokens being given will take into consideration the backing price. The backing price and the treasury token split equation are based on the same factors: wMemo supply and treasury value. They’re technically the same thing, treasury tokens are basically selling at the market value of these tokens in order to honor backing price.
In short, backing price was always meant to be backed by selling these tokens at market and buying back. So splitting the tokens or giving at buyback price are the same thing.
The announced airdrop of BSGG and the share of profits of Avax Liquidity are the share of revenue promised for all wMEMO hodlers. That is the revenue share/ dividend.
I’d also like to add to this discussion that, yes, whales wanted the price to go below the backing price. But you know how it happened? Sifu’s buyback bot was not properly filled with enough funds to buy back at the market price. In addition, Daniele and sifu got liquidated. Granted it was not much, but they added to the cascade. Poor management contributed to us going below the backing price.
I bought more a week ago at backing price thinking I was safe. Now just because of poor management and whales buying below backing, it means frogs don’t want me to exit at backing anymore? Makes no sense. It was daniele and sifu’s fault we were even 50% below backing. It was their job to stop whale attacks. Now just because we’ve been trading under it for a few days it means frogs want to completely disregard the idea of backing?
We are honouring the backing price, only avoiding those investors who purchased after the dissolution announcement, because they purchased in the hope of voting and dissolving wonderland and receive the backing price. (for eg: they purchased around 20K and were hoping in 5 days they will get 36K - backing price). So we are only avoiding them from taking advantage.
But all other hodlers who purchased before the dissolution announcement will get backing price if they want to leave.
I mean you guys are talking, but none if you are proving me that we ever were entitled to treasury tokens when selling.
Based on your logic, you guys are saying that everyone who sold under backing got scammed. And didnt get the amount they were suppose to get (backing price) are you going to compensate them too ?
Like I understand what you guys are saying. I just don’t believe its true. If we keep going, we keep going. We dont sell half the treasury.
We were entitled to backing price, that’s what I’m saying. If the treasury wants to give us the equivalent in tokens or wants to sell and give us in stables that is up to the DAO but either way it’s the same thing.
And yes, everyone who sold under backing did get scammed. However, you can understand their point of view given the constant instability of things. Even now, some people are proposing we forget backing price completely. What happens to investors who bought at backing hoping everything will be fine…? They won’t trust the project. That’s bad reputation.
Treasury has always made a promise to hold backing price… why change it now?
Then I agree, give them back the money they bought at, that’s fine.
the backing price is only applicable if the protocol is winding out. People exiting should exit at market price like a going concern protocol. Suggesting anything else is tantamount to suggesting stealing the community’s money from the community trreasury
I largely agree with this just a few details:
to make it a bit cleaner I think the aidrops should happen first as I assume they form part of the treasury.
Dani said that he will send his wmemo to treasury to be burnt, this should happen before the treasury starts getting distributed as will impact the backing price per wmemo.
I also wonder if we should ask for an audit before the treasury starts getting distributed.
The backing price has always been respected before and sifu had been buying to hold it. Just because a whole mess began doesn’t mean we stop respecting previous promises. These extra funds were never supposed to exist in the treasury because they were supposed to be used to buy any wmemo sold below backing.
m sorry but that doesnt make sense. They could just sell now and make a profit. It would put downward pressure on the price as they rush to escape.
The backing price is being misunderstood here. It was never a guarantee. If you look at earlier comments from Sifu on Discord (when he was doing his daily AMA`s), he clarified the backing price as a soft floor - which represented mathematically treasury/ total number tokens. It colloquially became a hard floor by misunderstanding and misinformation.
It was never a guarantee to be held but it was a guarantee to eventually buy all tokens being sold below backing.