Persist in the $1 repurchase and airdrop 1:1 to pre ido users
Let me start by saying that FEI was always supposed to be lower risk, I don’t see why there should be such a huge penalty when the PCV is already in such a healthy state.
Even if there has to be a penalty, why not $0.95? I don’t think 0.9 was ever that popular an option. In all the discussions I’ve seen on discord 0.95 was always the price. If there’s no option for 0.95 I’m voting for 1.
Also, don’t forget that there are many people who bought fei at 0.97 with a small reward of under 5% in the early days trying to support the peg. These people who lose money at a liquidation price of $0.9, which would be an unjust punishment.
On the one hand, I find it troublesome that so many people got into the Genesis without understanding even the most basic technical aspects of the FEI Protocol. I think that a redemption at $1 would be rewarding their irresponsable investment decision (as they would get to keep their airdropped TRIBE), and breaking the basic protocol as described in the whitepaper. I personally would prefer if the $0,90 redemption return rate was passed, or even the third option, of simply moving forward without stabilization.
On the other hand, a $1 redemption rate would simply take those speculative investors away, stop the outrage, and allow the protocol to get a fresh start.
It’s not an easy decision…
This too. Very good point.
How about assuming a full $1 but taking $0.05-$0.10 to TRIBE holders collected in a form of ‘growth fee’ for preswappers? A window for redemption can be established and after all the FEI exits the system, the fees collected can be slowly released to TRIBE holders vested over time.
I support a $1 redemption but would say that this should be limited to FEI amounts held before this proposal was made public. If that is not possible then only offer redemption for the amounts allocated during GENESIS and only to those same wallets.
I agree with this but also remember that there are people out there right now buying up FEI at much lower prices just for a proposal like this. $1 let’s everyone out with almost no loss while pre-swap TRIBE holders essentially pay for their exit but also creates a huge arbitrage opportunity for people buying FEI OTC and selling it to drain the PCV. Also think anyone selling FEI should have to burn their corresponding TRIBE airdrop. This would lessen arbitrage and make sure that early exitors don’t get future upside from TRIBE.
Agreed. Any Fei redemption should be valid for Genesis addresses and investments only.
Any Fei redemption should be valid for Genesis contributions only.
I think this is a great idea.
Agreed, but what about the whales that have been in since Genesis? They would still be eligible. I think a snapshot might be needed.
Then after the redemption there will still be sell pressure due to those people who bought after genesis believing FEI will restore peg. It makes no sense to me to limit the redemption only for certain addresses since the purpose here is to not compensate loss but to make FEI work as intended
If people sell their FEI to the protocol for $0.90 worth of ETH (as described by the proposal), its has a very similar effect to the “growth fee” you are proposing.
This is because instead of taking the $0.10 from the PCV to give to the person selling their FEI, those $0.10 stay in the PCV. Since PCV is managed by TRIBE votes, its similar to TRIBE holders getting that $0.10
I believe the majority of the sell pressure is coming from Genesis investors and due to a lack of confidence in FEI (from not meeting peg and lack of options to use FEI). The point of limiting the wallet addresses is to not reward recent speculators unduly. They can wait for peg to stabilize at $1 to realize their gains.
I think selling FEI through this proposal period should require the requisite TRIBE that was acquired in Genesis. If you bought after genesis to trying sell when the price goes up them you’ll have to acquire the requisite amount of TRIBE. Those TRIBE should be burned or transferred to pre-swappers. Those that bought after the hematite should not be allowed to drain more ETH out of the PCV when they did not have anything at stake.
I disagree with you. The PCV is used for the stability of the entire protocol but it has no inherent value for preswappers. What I am proposing is to let the speculators pay back the initial Genesis group directly as they exit. This is immediate realized value, but just slowly drip fed back to TRIBE holders to prevent massive dumping.
“Managed” by TRIBE holders is not the same thing as taking your ETH back and going home with no loss. Most of the risk and most of the loss is all on the TRIBE holders.
It does however leave the TRIBE holders more funds to utilize in the PCV for future use.
Has there been discussion on the difference of these choices of $1 or $0.9 redemption? If not, what are the differences in the short term and the long term?
The swap would only work for genesis participators, anyone else who bought after the genesis would not count.