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
Great ideas. I think 0.9~0.95 would be a balanced exit price for Fei. PCV will retain at least 5% of ETH. Given 1 bn of genesis ETH in PCV, even 5% would still be an extraordinary amount. Fei holders will be happy because we already see plenty of panic selling below 0.9 USD. Have a floor exit price 0.9 would be acceptable even profitable for many. As for Tribe holders, since the project is not as successful as expected, loss is unavoidable. This proposal compensates for Tribe as well, which is a nice move.
Cross posting here. What do you all think of this idea?
The basic idea is to offer Tribe holders redemption at a discounted price, too. This leaves the remaining holders with a nice gain in PCV and lets anyone who wants to get out, get out.
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Why don’t we also offer a buy-back / redemption of Tribe at a discount to the remaining PCV?
This offers each key party the following:
Fei holders - Option to redeem Fei at $0.90 or $1.00 for each $1.00 of Fei owned → $0.90 - $1.00 per Fei
Tribe Pre-Swappers - $0.90 or $1.00 back on each $1.00 of remaining PCV, divided pro rata by number of Tribe outstanding → $2.40 - $2.66 per Tribe
Remaining Tribe - Benefits from a PCV / Tribe that is HIGHER than the PCV pre-swappers redeemed at
Team and VCs - Benefits from having FEWER Tribe outstanding and higher PCV/Tribe to build the project with, so war chest is bigger on a pro rata as future Tribe unlock and folks will be more loyal to make project work
This also has the advantage of giving everyone an exit right - and accruing (or costing no) pro rata PCV value to every token holder who remains.
Interesting but i think you miss one thing
If the step1 benefits the sellers by ease the exit it should also benefit the holders and not just in a way there is less supply so the value should be higher… i mean direct benefits let say seller can sell at .9$ then the .1$ tribe buyback will be added to the staking pool or distributed to holder etc