I was in doubt between options 2 and 3. My decision making is considering: (a) What is “fair” for Genesis participants? (b) What is good for the long-term perspective of FEI Protocol?
From my calculations, buying FEI at 0.9 ( 1- the value of TRIBE Bonus) will respect the essence of the stablecoin concept, to keep your value constant, receiving the same amount of the money you spent. So FEI users could exit at 0% loss.
Although I liked the option of “Undo Button”, it would take more time to implement. I think we need to move forward. The opportunity outside is much bigger than the difference between the options we have right now. We have plenty of issues to vote, such as: (1) how to improve peg mechanism? (2) how to compensate Tribe long-term holders? (3) What if the ETH crashes? (4) New integrations and bonding curves.
If the community decides to pass option 2, minutes after the market will bring FEI price near 0.9. This will be good to PCV, because we will need to spend less ETH to bring price to 0.9. It is an expectation game. Very similar to how Central Banks work. A buying order from PCV at $ 0.9, will create a floor of $0.9, facilitating more integrations and FEI expansion.
Thinking about the impact of this proposal on valuation, I see that we would remain on healthy terms with a Circulating Tribe / PCV of 0.67. Due to the arb movements cited above, this numbers could be even better as people would not sell FEI to PCV, but sell in the market before. The estimated 50% selling adoption to PCV would be smaller. As important as the PCV, FEI volume and adoption, will be the main value drivers for TRIBErs.
Source: Impact Evaluation
TRIBEs value comes from FEI users. Protecting the PCV is important, but also protecting FEIs reputation and building trust about the protocol and our community is important. The way we deal with this initial problem will send a signal to the market if they can trust TRIBE or not. Providing FEI users with a fair, simple and acceptable solution would be good for our product, FEI stablecoin.
Following the rationale above and thinking in the long term, I decide to vote on option 2. I think buying at $ 0.9 is a middle-way solution for everyone. My vote is to solve this issue and start building the future.