Hello everyone,
This is an idea that keeps coming up in community calls, discord channels, and elsewhere. This proposal will put the idea up for a snapshot vote. Moving this idea to last call, please respond if there are any aspects of this proposal that you think should be modified.
FIP-46: Remove FEI-TRIBE IDO Liquidity From Uniswap
Summary
Remove the FEI-TRIBE IDO Liquidity from Uniswap. The FEI and TRIBE will be moved to a cold wallet with the 4 year vesting schedule unchanged.
Motivation
TRIBE’s liquidity depth on DEX’s is high in comparison to similar market cap tokens. The FEI-TRIBE pool is the 2nd largest pool on Uniswap, with $363M TVL at time of writing. This is a deeper level of liquidity than any other governance token, and the situation only becomes more extreme if you compare each governance token’s liquidity to its fully diluted value.
Having deep liquidity presents many benefits, including facilitating large orders with low slippage, and also stabilizing the price against volatility. However it can also be a double-edged sword. A large amount of liquidity relative to the size of the market can dampen price action and prevent natural price discovery. Since most of this liquidity is from the Fei IDO, there is an argument to be made that it is not organic liquidity, and should be adjusted since it was a parameter in the protocol decided before the protocol launched.
Proposal
Remove the FEI-TRIBE IDO Liquidity from Uniswap. The FEI and TRIBE will be moved to a timelocked cold wallet with the 4 year vesting schedule unchanged.
Voting Rules
Voting will last 2 days and have a quorum of 10M TRIBE.
The two options for voting:
- Yes remove the IDO liquidity
- Do not remove the IDO liquidity