You’re so right, let’s vote on this
The idea is awesome, but I got some viewpoint for why not do this.
According to the article is too long, I reopen a proposal page here.
you are right this theme should be used
Some interesting conversations happening around this topic in the BitDAO Telegram Telegram: Contact @BitDAO_Official .
Please vote and accept
I’m going to split my opinion into two posts so I can focus on crafting my answers without having to turn everything into a big whitepaper.
Buyback and Burn are the most discussed topics for months in the community, my position is against it and here are my arguments in topics:
1) Economy / Tokenomics
Having a treasury with stable and diverse assets is healthy and important, ignoring this in an industry that recurrently has periods of trouble (crypto winter) and still having the possibility of a Black Swan can be fatal to the entire project.
Virtually all projects approved so far have the delivery of resources in tranches. If there is a long period of low prices, how will commitments be paid?
“-Oh, we can use the monthly contribution for that!”
Then you will lose the artificial instrument of price control you were created for and now you are dependent and because of that your treasury will be catastrophically devalued.
Another problem here is the lack of demonstration that, once approved, this change will actually impact significant market valuation. In my opinion, there must be inaccuracy of calculations.
The amounts of 700K USD daily are not enough to push the price up significantly and sustain it above some price. I understand that for us mortals, 700K USD daily or 21M monthly is a lot of money, but that’s not enough for the promise of appreciation.
I dare say looking at the metrics, even 5x or 10x that amount isn’t enough. But let’s say that hypothetically in a utopia this would be enough, we will have another problem:
In recent years, an important part of market cycles has been the swap of volume in spot trades for futures contracts. When this occurs, daily or monthly purchases using the Bybit commitment will make a 0% difference.
My comments on the economy and tokenomics are based on my experience as a competitive trader, previously ranked in Binance’s top 10. But I’ve been retired for some time and just my opinion shouldn’t be enough, I suggest you guys use connections to communicate with other experts like FTX/Alameda and ask for a third opinion from the ninjas who work there.
I have a suggestion: BIT can be used as a fee deduction scheme for the Bybit platform, just like BNB.
In this way, there is a natural destruction mechanism, which will allow BIT to be held by more traders, and, in order to obtain transaction discounts, continue to buy more.
Who will support us if we don’t do anything about the price? Why should new investors come? Doesn’t a project whose value is constantly falling and which hardly reacts to the rise among its alternatives seem to fail? Price is paramount. Your disregard for the price is driving me crazy. (price will increase=new investor will come=less bits will be allocated to new projects)
I’m sorry if my review made you crazy (in your words), but I must warn you: this was just the first part (economic side).
If your question is about who supports BitDAO’s vision and values, you can check here. Do you think there are few supporters?
First of all, I would like to correct what you said about the “value is constantly falling”, perhaps the most appropriate word in your hypothesis is “price” and these are two very different things, the value of BitDAO is constantly high, while the price may eventually fall.
Your speech sounds like a Wall Street shareholder demanding higher dividends, so he hires a CEO who will aggressively increase profitability in the short term and leave the long term in the background, for that they pay the CEO an astronomical salary (whose salaries increased by 940% since the 1970s) and then when the company “surprisingly” goes bankrupt, they appear on TV blaming the contractor.
I wrote about manipulation crypto markets five years ago (It’s in Portuguese, but if you want to check it out: link) . At that time I spent 14 months accumulating (buying) and then distributing (selling).
So don’t mix your emotions with business if you are a trader or investor. And think about this: If prices are always falling and you’re not buying more and taking advantage of it, it’s your strategy mistake, not the market’s or BitDAO.
When high-volume investors come into your game, they don’t come in by paying dearly and rising in price, it’s the exact opposite.
Ya I think you are on point, we can’t take this intention because of our short term personal benefit and we need to THINK further, but my opinion is maybe we can purchase $bit back and well-utilize it in others’ plans rather than burned or just keep into treasury fund, BURN IS TOO EARLY FOR $BITDAO
We say very different things to you, I guess because we don’t speak the same language. Maybe you should check my previous posts. What are you comparing the metric to? If you look at the statistics, the number of people holding bitdao in their wallet is decreasing. Building the future… If I don’t have money in my pocket today, I won’t be able to reach the future. I advise you not to detach from the real life you live. I collect as the price drops and the price has been dropping for 5 months. Frankly, I’m not rich enough to collect bitdao forever because I haven’t seen the price go up. Who buys bitdao if the community thinks the price drops are insignificant and hasn’t produced new projects for months? Stop dreaming, value is measured by price. If the community does not take any steps to prevent the price of bitdao from falling for 5 months, the group of companies that I and I have introduced will have lost faith in bitdao and will accept that it was a faulty investment.
good job! hope to see proposal pass
I fully agree with this proposal, and guess almost of $BIT holders too.
I can’t agree with this proposal no more.
If understand correctly, this proposal is primarily focused on increasing the liquidity of $BIT.
Increased liquidity may not materially affect the price of $BIT, rather merely reduce spikiness of price movement caused by large buy/sales, reducing slippage in those cases
If the buy price is above spot it would be a minor force to increase $BIT price, while at spot or below it would provided only a limited price support, given the pool of money available and daily volumes.
Would you like to see this proposal go to vote?
Fully support buying back but burning may not be a good idea.
I’m new to bitDAO, but came with a lot of expectations… and I’m really surprised about ‘how come bitDAO - being the largest DAOs hasn’t produced any new projects for months?’ !!!
Appreciate any kind response!
BIP-9: $BIT Purchase Program has been officially proposed
If approved, the parameters, which are designed to foster an economic connection between BitDAO treasury and BIT token, would go into effect on June 1, 2022. Get involved with BitDAO governance by casting your vote.
Voting period: Now until May 5, 2022, 03:59 UTC
To vote on BitDAO proposals, you must delegate your votes. Learn how to delegate here.