[Discussion] Relaunch

There has been some sentiment among the community that we should relaunch USD.

The rationale is that the V1 bug, the 1.5X USD multiple and the USD farming dilution basically destroyed all momentum USD/SHARE had.

A potential relaunch plan is:

All current users can lock their USD and SHARE in a contract, which unlocks it at a prespecified time (kind of like an early investor).

The USD supply would be reset such that it priced at $1. Existing users can rebuy back in at this price.

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Interesting proposal. I wouldn’t be against it if those are the parameters. As someone who has been here since day 1 and continues to support the protocol I have no objection to either path. I support whatever decision you (and the community) ultimately decide to take as long as us original investors are not forgotten.

Cheers

It’s not a bad idea but really it should only be done once otherwise there is further risk of the protocol being viewed as not taking itself seriously.

I propose a tiered unlock schedule whereby small amounts of existing tokens would be released to token holders so as not to create too much selling pressure too early. We could also vote to accelerate those timelines if the protocol really takes off.

I think this could be a great relaunch with all the improvements that have been discussed

It would make sense that users with their SHAREs locked benefit from positive rebases

I stand with Robert. Will stay. Take your time. No rush.

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It’s a good proposal but it needs proper planning and a roadmap.

We also need to discuss what can be done to prevent a situation like this in future.

I am from day one and support relaunching.

The other benefits of relaunch would be starting mining pools fresh and you could launch EUR/USD at the same time if you wanted. You could have the treasury set up, the pegs would start at 1:1, original investors could have vesting over 6 months or something (whatever is reasonable). Rebase frequency every 12 hours, discount rate 1% every 12 hours. Might be good to wait to implement token governance or if thats way down the road we can wait thats fine. Fresh marketing campaign to hype the new launch. Rebranding. Not sure what your capital roadmap looks like to pull all that off but definitely a decent chunk of those things would be nice. Might be good to tweak the SHARE emission schedule based on your findings of v1/v2. Would be nice not to have USD coming from mining too.

Treasury would definitely help, and not shocking the system with too much USD. We started v2 with USD at like $.50 so it was kind of doomed from the start.

If you restart, how to deal with the shares held now?

Feel quite strongly about a relaunch needing to be done, with the APY so low the IL for sitting in pool is high and the risk for staking isnt worth it, so less and less ppl will stake, infact anyone who is staking now probably isnt aware of the IL risks.
if there is no relaunch the project is 100% dead. I mean usd is 10c now as we stand, its over now.

Use this opportunity to relaunch with the new marketer on board.

Relaunching might be an idea. Nevertheless, we might want to wait a bit to see how that goes and be sure we nail it next time. And the current system might heal himself. Would be sad to never know.

I think more and more that at the beginning, all generated USD should go to the treasury that sell them on the market at a somewhat more aggressive pace than a 30d lag (no lag at all) as long as it’s above 1.01.

The treasury can sell it for USDC/ETH/WBTC and keep those reserves. investing those in Aave/Compound (yCRV if you really want to be screwed by Tether) so at any time we have more money that anything that can go out. We buyback USD at 0.99. Therefore any fluctuation of supply make money for SHARE holders.

This way SHARE holders make money when:

  • People are expanding the USD supply (buying at 1.05 from the treasury pocketing 0.05 spread)
  • People are leaving the system (buying back at 0.95 pocketing the 0.05 spread)
  • All interest/appreciation generated on the treasury.

At $1B outstanding we can decrease the Treasury coverage of the supply and remove anything that’s risky from a custody/regulation perspective (USDC/WBTC). We can decrease the spread to 1.01 and 0.99

That way we secure SHARE value during adoption. SHARE value can hardly go below the Treasury value/SHARE count.

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I totally agree with relaunch. I would suggest to review approach by HEGIC team. They have been hacked too and I think they provided hacked people big share of long vested very cheap price tokens to collect rewards from HEGIC option ecosystem.

Now here what I think wasn’t so right. Idea of rewarding people 1.5x shares and 1.5x USD is great, but doesn’t make sense when price is already low and keeps dropping. What would be good with launch new system, focus on have something like most ICOs do. They rise funds and give people vested tokens.

So here my proposal and I will focus on shares users as they are most important part of the ecosystem. Without share users, there is no interest in using dollar coin. Share is DAO token.

Lets say we know people lost funds in version 1, those funds were able mine X shares per day if hacking didnt’ happen. Now those people are unable anymore to mine same X shares rewards compared with the fair relaunch. System can take weeks-months to rise funds to repay losses for people.
Giving 1.5x share people made in 2 weeks, would mean system expects that in 2 weeks it can repay losses to the users in v1.

What would be better approach?

Calculate how much people would be able to mine in 6 months with growing ecosystem, based on funds provided as LPs and vest this amount for 6 months in separate contract. Where this shares coming from? You should take them out of the mining contracts and team contracts. Reduce amount of shares mined in 6 months by LPs. This vested contract should let people from v1 be able withdraw % monthly. Parameters could be still discussed. This allows new users to mine shares with USD = 1 USD peg calmly without being afraid to be dumped on and old users, who worked hard to mine shares and help ecosystem not to worry about their share and INVESTMENT IN SYSTEM.

Now with dollars, 1.5x dollars is nice, but as we can see share holders and old users will get upset with system and just dump and leave it to save their money, because there is a lot of uncertainty. It’s also complex as we have lots of dollars on the market and hard to keep peg for the LPs. So the dollars lost in version 1 need to be auctioned for new relaunch with peg USD = 1 USD so new users can buy them and use for liquidity providing, rised funds repayed to version 1 users. Version 1 users cant dump them, it should be sort of auction contract for all the USD users in version 1 to deposit dollars too. And we don’t need 1.5x USD, we just need USD = 1 USD. Also will need to reduce USD supply in other contracts, focus on the one lost by version 1 users.

In my opinion whoever dumped SHARE and USD can just leave the ecosystem and not deserve to participate in relaunch. They still can wait for repay lost funds -> ETH …

And of course, we all must invest in marketing and support of growth of ecosystem, not hope in quick exit skem. I propose this system because I am interested as share holder to rise proper % in ecosystem and stay as long term investor supporting it. Giving 1.5x shares person hardly mined in version 1, is basically cutting him off the way to support ecosystem and being its influencer or being rise more shares he planned in begin…

I accept any arguments, but if you want keep fair play for the share holders of ver 1. You should think how to keep % of their share growth they had in begin for next 6 months until funds can be rised to repay losses. You can calculate formula of expected weekly growth of ecosystem and how much less with that lost LP, they would make for next months. And its honestly not 1.5x. in 6 months of what was mined in 2 weeks.

Reducing LPs mining shares rewards and adding them to vested contracts doesn’t bring inflation and reduces ability to dump on the USD = 1 USD peg. Thats our goal to achieve.

Should we vote on this?

There’s no rush to relaunch, but I think we should stop the current version. It’s just hard to watch at this point

I’d like to see if the system can recover from such an extreme downturn. If it can then the economics work and we will all believe in the protocol forever.

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Agreed - I think tentatively it will be good to leave dollarprotocol v2 as is. We will continue setting up mining pools and such.

We all believe this is a solid project and it will recover eventually.(thats why we’re still here supporting Robert)

But what if it takes 5-10 years to recover completely?

another idea that is similar to “relaunching” but doesn’t require a new migration is simply deleting 90% of all circulating token balances. So for example, the Uniswap Pool with ETH-USD would only have 64,000 USD - 184 ETH as opposed to 640,000 USD - 184 ETH.

I don’t like the idea of deleting token. People have lost money and now you are talking about taking away tokens too. So what will they have?

Say someone bought $1000 USD at $1. Now he has $100 worth of USD. And the person must be hoping that one day usd will return to $1. So he can sell at break even. But if you take away 90% then he will have only $100 usd even when price is $1. I don’t think many will like this idea.

When you say you will delete. Will you give them back the tokens when usd is above $1? Or you mean to say it’s deleted forever?

It’s better to lock tokens and release them linearly when usd is above $1. Release it so it doesn’t affect price of USD much.