This proposal is aimed at providing predictability in the price of Seeds, as well as to reward contributors with currency for their seeds where it is needed. Specifically, we desire
a) that community members who wish to sell their seeds can do so without feeling as though they are adversely affecting the community (by causing price slippage on the seed market).
b) the MetaGame treasury be used to help support a healthy collaborative community in MetaGame
c) the MetaGame DAO itself becomes a stakeholder in Seeds, through holding Seeds and/or providing liquidity to the seed Market.
The Following Structural Proposal is suggested:
The MetaGame DAO will buy Seeds from the Seed Market using the Treasury Funds in order to support a price of approximately Y USD per seed.
Furthermore, I propose that we initially set Y =6.
Additionally, I suggest that Seeds purchased in this manner are added to Liquidity (with Eth from the treasury) in order to Further Bolster the robustness of the seed market.
- This proposal formalizes the suggestion by @peth to have the DAO “buy back and make” the seed market.
- This proposal as the indirect effect of allowing seed-holders to add their seeds to the Seed Market without adding Eth. The single asset liquidity add combines a swap with a multi token liquidity add; this would depress the seed price, but by buying back seeds we counteract this effect.
- This proposal is necessarily to be administered on a discretionary basis; automating such a policy would create an obvious attack for draining the treasury. As such this policy is to be suspended immediately if foul play is suspected, and only executed if concern of manipulation are cleared.
- For the reason above, this policy should be viewed as a bootstrapping policy rather than a long term “steady state” policy. That is to say it should work very well while the holdership of seeds is aligned with the projects long term goals, rather than simply extracting as much Eth as possible.
- As the seed market grows in liquidity, slippage will be reduced, and ideally we will no longer need this policy as a crutch to support sale of seeds for those who wish to do so.
This proposal is intended to be considered according to a variation of: