I am writing this proposal that is my best interpretation of @joey 's recent comments.
It is clear from the team’s comments regarding the snapshot vote, the best step forward is to find a way to get back to the peg. To do that, we need to relieve sell pressure and/or reweight. This will create utility for FEI as it makes integrations feasible.
Unfortunately it seems the first proposal was too favorable to FEI holders relative to TRIBE holders. In light of Joey’s comments about keeping implementation simple and not having to deal with many edge cases, but liking the “Undo Proposal” in spirit, here is simplified proposal.
For every 1 ETH committed to genesis, participants received:
Allow a redemption in this ratio, with no edge cases to deal with. For every 156.437 TRIBE + 2037.768 FEI redeemed, the redeemer receives back 1 ETH. Anyone can redeem, including people who did not participate in genesis. This simplifies the implementation significantly.
This is significant concession relative to the first vote, which was 56%-44% before the team voted
No Change. This means it would have passed if the team voted the other way. Hopefully these tweaks make it agreeable to enough people to proceed.
What happens with the redeemed TRIBE can be decided by the DAO, but I reckon a good use of it would be to distribute it to TRIBE/FEI holders who do not redeem. The specifics of that need to be discussed; perhaps weighting it towards pre-swappers is most fair. Open to suggestions.
This proposal has many pros in line with the long-term success of the protocol:
+gives fast money an exit without any profit, and doesn’t leave a bad stain on the project. Great for optics long-term. Reduces the bad taste of people, retains them as potential FEI holders in the future.
+relieves significant sell pressure below the peg, helping achieve the peg in the near future
+makes concessions to TRIBE holders who want to stick around for the long-term and see this project flourish, while flushing out the participants who have no intention to stick around long-term or add any value (The TRIBE will be united and strong)
+allows for a simple implementation, which helps with both safety and creates an expedient option for many. This is helpful as all will be less exposed to ETH volatility.
The only downside is that the PCV will be reduced; however, with reweights that is inevitable and this proposal strikes a happy medium that compensates people who stick around. Reminder that the protocol is still significantly overcollateralized, and this proposal will increase the collateralization ratio, making Fei Protocol even healthier.
There are of course people out there who have traded FEI/ETH FEI/TRIBE TRIBE/ETH etc, and therefore do not have the proper ratio to fully redeem even if they participated in genesis. There are also people who have purchased FEI or TRIBE post-genesis. In these cases, they can adjust their holdings on market into significant liquidity if they so choose. They can partially redeem what they do have. If not, they can stick around, receive some of the redeemed TRIBE, and see what happens with reweights.
I’m open to suggestions on some ways to tweak this, and on what to do with redeemed TRIBE.