Stakeholder management is always the most tricky topic, especially with a diverse community group.
Here is what I propose to balance the stakeholders in FEI, incl. FEI holders, Tribe holders, team etc.
Step 1: Allocate a reasonable percentage of PCV to allow angry money to leave
Assume USD500m eqv. of PCV is used for buy back (for illustration only, actual percentage can be different)
- 90% to buy back FEI @ $0.90, burn 500million FEI
- 10% to buy back Tribe @ market price, burn ~36million Tribe
This is equivalent to compensating an under-pegged stable coin with a governance token.
Note that the 90%:10% allocation is arbitrary, the basic idea is:
- Non-preswappers are able to exit at a slight profit (~2%)
- Tribe holders will hold higher value as the Tribe circulating supply is reduced
- Total PCV will be reduced to a healthier level which can be managed more efficiently
This can also be achieved with the auction idea brought up by Joey and the community in early days.
Step 2: Encourage long term stay
- Adjust LP rewards to be more attractive, e.g. relocate 5% from DAO to staking rewards to be unlocked over two years, subject to more thorough discussions
- Once FEI stabilizes, remaining PCV can be used to generate yield. 50% profit can be shared with Tribe holders while the remaining 50% goes to PCV reserves
It’s been noted that Tribe holders are currently at a loss - market price of $1.36 vs IDO price of $2.60 (after airdrop); however, unlike FEI which should be a stable and liquid asset, Tribe is more volatile in nature and can bear with longer investment horizon, thus step 2 can help to compensate Tribe holders in a longer term