[Proposal] Set the treasury to 100%

We were USD > $1 but didn’t made any reserves and now USD is again at 0.6. Main reason is that people didn’t understand the positive rebase.

Should we set the transfer to the reserve at 100%? In that case for every positive rebase, the minted USD will go the the reserve to be sold for ETH. This ETH will be used to buy USD of people leaving the system (at 0.95 if I’m correct, so making a profit). At some point we will be able to use some of those ETH to reward SHARE holders by buying SHARE, repay v1 holders, …

The con is that you will no longer get USD.

What do you think?

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What is the point of holding SHARE then?
Is it that you now hold a pro rata share of ETH via the treasury?

How about the treasury gets all of the USD during a positive rebase…it then sells the USD for share, which pushes USD back to peg and gives all share holders more share. This would incentive holding share and raise its price. It would also benefit all shares holders, not just v1 people.

Con…it makes share inflationary

Buying SHARE now (well in the next positive rebase) is thinking short term.

There is an insane dilution coming because we didn’t have reserves (2 to 20M SHARE will be issued) so indeed I don’t care about buying and burning some thousand SHARE. What I care is not being diluted again after that. That is worth way more.

Anyone can guess how many SHARE can be burned with the ETH in the Treasury. This should be enough to push the price.

The proposal is to avoid the inflation in downturn. And at the end, there is only one SHARE, mine.

The current system distribute any benefit immediately and then SHARE holders pay 5x the price in the next downturn.

The current design is hard for average investors to understand based on my observations in telegram and Discord.

From the market reactions, it seems many people do not want to play with the current tokenomics. Are we forcing everyone to become a long-term investors?

Is it possible to find a mechanism that is easy to understand and people like to play with?

Treasury is a must if this project needs to survive.

I support what you proposed. its the treasury which should be selling above $1.05 to ETH.

We can surely have a discussion about the best way to use the accumulated ETH. but treasury is a must.

V1 tokennomics is simple
buy/mine SHARE hold AND positive rebase you get the money
THE latest change might make new people without enough experience a little harder to understand but works
the main problem is the USD liquidity and the incentive to PEG which is the critical to the success of this creative project
so USD POOLs need more incentive to lock the USD liquidity something like bonding curve coefficient for output of SHARE
then the burn of USD need to use price related to burn sonething like ^2 discount and FIFS to incentive buy pressure
treasury is not so necessary if there is no bond token IMO which will excetly the same as the basis.cash protocol
and for SHARES only locked in pools ones to get the new USD WHICH might decreese the sell pressure of short term yield farmers and even better that SHARES dont get burn for the reanson as follows :sunny:
(1) SHARES shoud valued by market and works like assets which generate new cash flow when positive rebase it’s weird for people to see their tokens“ burn” , some only want passive income
( 2) for the potential list on CEX for more adoption
one more thing the transparency about the SHARE allocation the total supply fixed or elastic for people to value its Scarcity
@Robert

Although I personally see the benefit of this current tokenomics, a lot of mainstream crypto people have proven that they don’t. The moment people started realizing their SHARE was burned for USD, the price of both assets took a nose dive.

In my opinion, we need to make the system easier for your average crypto user to understand what’s going on, but still give SHARE deflationary characteristics. I’m concerned that if the treasury gets 100% of positive rebase, people won’t see much incentive in buying SHARE. This is really a catch 22 so I’m not sure what the proper way of approaching this is. One thing this made me think of was what if the treasury received 100% of the positive rebase, but then distributed a certain percentage of ETH to SHARE holders?

treasure cant solve the problem about the LIQUIDITY of USD and negtive rebase if treaure not incentive USD to peg

USD SHOULD NOT only to mine it should work like money which store of value first then lending/borrowing anything else to have usecase

The vote is here => https://snapshot.page/#/dollar-protocol/proposal/QmU8Tbw1WXpY1xpSaY4eJuPNcCtXcEHoxpC8xifcjHxdi5

This is a bad idea. The only way the monetary supply will expand is off the back of speculation. If everyone knows that as soon as the price goes above 1.05 then more USD is printed (not to them) then there is no reason for it to ever go above 1.05. Who is going to buy a token that has a capped price. The only way this works is off of the greater fool theory. The only way this works is if the supply is large, liquidity is large, and demand is large, aka it’s actually being used as a stablecoin. It’s too early right now for something this drastic. I’d love to hear your rebuttal.

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At first glance I’m not real keen on this
We need more people interested
People are naturally selfish and want to know how they can make money, immediately. This delayed benefit stuff doesn’t work in fast paced crypto so it’ll be a turn off.

This is already the case, and Robert set an aggressive rebase lag to mint a lot of USD so the USD price take a hit everytimes it goes too far.

It doesn’t change much the process. The same amount of USD is minted for each rebase. It’s just sell at once instead of bit by bit. You can increase the rebase lag to allow USD to go to moon when there is demand.

If more people are coming to farm, more USD will be minted, there is no other way.

This recent change is a battle between high culture vs. mass culture. I personally applaud for the change but the mass market won’t buy it. If it is not simple enough to calculate the ROI for the mass, that’s a major flaw. Anything else is build upon it.

How do you solve the cold start problem in negative rebase? There are several minion shares but 0 ETH to start with. The ROI is miserable at the very beginning.

Roi for share is amazing now though lol

My opinion is that treasury should only sell above 1.2 and buy around .8.

It should give enough space for people to speculate on USD price.

I agree with this. we need enable SHARE’s value for both short term and long term holders.

I support this idea in the infancy of the project. I think giving the treasury full control over rebase is ok in the beginning. We can take a page out of Frax. And as confidence in the system grows in terms of market cap for both SHARE and USD, we can begin lowering the reserve rate of the treasury the longer the system is in positive rebase, and slowly increase it when the protocol dips into negative rebase. Eventually, to make it fully algorithmic, you would want a reserve rate of 0% for the treasury. However, I think having treasury receive a bit of rebase is in the best interest of every party involved. Ideally the treasury would receive about 5% of rebase when protocol has reached a maturity point, and at that point SHARE holders would receive 95% of seigniorage

The vote is now open => https://snapshot.page/#/dollar-protocol/proposal/QmU8Tbw1WXpY1xpSaY4eJuPNcCtXcEHoxpC8xifcjHxdi5

edit: not => now