[ARCHIVED] Why Liquidity Staking NFT is better than repurchase and burn?

Why Liquidity Staking NFT is better than repurchase and burn?

Recently the cateatpeanut and Windranger Labs have proposed a Bit purchase program soft proposal.

Please see soft proposal 1995

Recap

The proposal with the BitDAO Treasury can spend some funds to repurchase the $BIT from publicly available secondary markets and explore the possibility to burn of $BITstarted from 2022 June 1st.

Why Burning is not a good idea? An alternative proposal?

The idea of purchasing and burning $BIT is fantastic, but we think it is limited to the development of the ecology.

BitDAO is young, and the whole ecology system is still growing. In the long run, we shall focus on creating a mechanism to increase community consensus, empowerment and then increase self-cashflow ability.

Liquidity Staking NFT is better than repurchase and burn?

Why Liquidity Staking NFT is better than repurchase and burn?
The idea is as below:

To better gather community awareness to reduce the selling pressure (For price purposes? if you care about this!?). Top priority, we need to increase our cash flowability and create a new product for the BIT holders as an incentive to lock their tokens.

Our Proposal

BIP1: Increasing the treasury diversity

  • The current contribution is composed of 50% ETH and 50%USDT/USDC. More details here: BitDAO | Analytics

    BitDAO.

  • However, we should increase the type of assets in the vault, especially the POS blockchains, which have high TVL and promising future, instead of betting on all the chances on $ETH, even Ethereum is the queen of L0.

  • For example, POS chain like $SOL, $AVAX would be good choice to do the liquidity staking.

  • The community can discuss more assets in the future.

BIP2: Increasing the self-cashflow ability

  • BITDAO treasury shall use more tokens on liquidity staking; some project like LIDO, Marinade.Finace is huge and safe enough for the community to consider.

  • People need to consider how long the DAO can live on the investment from Bybit. - The child shall grow up in one day. And therefore, building a “passive income” becomes a matter of urgency.

  • LIDO: ( https://lido.fi/ )

  • Marinade.Finance : ( https://marinade.finance/ )

New product roadmap - Bitdao liquidity NFT is better than burn.

Considerable supply of BIT has its own reason

  • We believe that the huge total supply in the original BITDAO design has its reason. The considerable supply can offer BITDAO to better invest and exchange the token from other promising projects. The early investment will bring significant income shortly.

With this viewpoint, we don’t think burning can help the ecosystem grow better but is limited to increasing short-term buying power.

  • What is a better idea for decreasing the short-term selling pressure. The radical tips are cohesion of centripetal force, more specifically, enhancing the consensus and recognition of BITDAO.

Maybe transfer/lock some token to BITDAO NFT?

  • Maybe Launching a BITDAO NFT, giving the bitdao holder a chance to have more functionality. Each NFT can mint and lock by a different amount of bit token. The BITDAO NFT can provide the holder the voting empower and interest from the above liquidity staking rewards so that we can generate a positive incentive to hold bit and decrease the selling pressure in the short term.

Success example. e.g. MNDE(mSOL)

  • Recently, the MarindaeFinance (mSOL) have launched its own MNDE NFT project, which is an extremely good example. They use the locked NFT to decrease the selling pressure of MNDE tokens and gathering the community consensus. I am not saying they got a huge success right now, but it is an exotic idea to try.

Strong enough story for marketing (narrative)

  • The functional NFT concept is hot right now. If the BITDAO community has this token-locked NFT, we shall be on trend again. Meanwhile, our total supply token won’t just burn and disappear, letting the future has the chance to exchange more profitable/ promising projects into our BITDAO family.

Welcome further discussion and sharing.
Lovely Bit Holder

Check Poll

Would you like to see this proposal go to vote?
  • Yes
  • No

0 voters

14 Likes

I can’t agree with the opinion that Buyback and Burn are bound to be limited to developing the Bitdao ecosystem.

People who invest in bitdao are not charities. We should show the promise of tokens by increasing prices. That way, more people can enter this ecosystem.

In addition, the bitdao community should actively engage in activities to raise token prices. That is Buyback and Burn.

The way you said it isn’t a bad way. But isn’t it good to do Buyback and Burn and burn at the same time?

3 Likes

We agree with you, but disagree with members who hold huge amounts of bitDAO. Despite the unwillingness of most members, the bitDAO dao feature was lost and voting started. Nobody cares about the price. Frankly, I lost my trust in BITDAO.

2 Likes

Pay attention to Bitdao’s growth, don’t let it fall freely and no one will glance at this token because it is unattractive and poor updates. I thought it was stable because of the large treasury but instead it was rugpull

2 Likes

Hey RJ, I think the ideas you discuss in your post are of interest to all BIT holders. There are a variety of opinions on these topics and I’m grateful that you’ve shared yours. If you would like to discuss your proposal and/or other token-related topics please join us on one of our community calls hosted every Tuesday in the BitDAO Discord. Feel free to DM me to discuss how we can integrate the conversation into a future call :slight_smile:

6 Likes

Hi Lbrian,

Thanks for the invitation to Tuesday call, it was an amazing discussion on this proposal. As we mentions in the call it would be good to make our treasury more diverse and decentralized on different projects. Once we have stable cash flow, we shall have enough capability to support our NFT project as an incentive to our BitHolic holder.

Anyone is interested in this topic? Welcome to drop your comment below :blush:

4 Likes

In accordance with the forum archiving policy, this discussion will be moved to the General Archive. If you would like to continue the discussion, you can update your discussion topic or soft proposal and repost in the Discussions category.

1 Like