It does not flush out the selling pressure. It benefits any trader who wants to avail themselves of the spread. This plan is sloppy; it is a band-aid, thinks 1 step ahead.
Work out the break-even Ferdinand. FEI holders got free TRIBE. That’s the price at which you should buy back the sellers.
And if its selling pressure you want to alleviate, then only Genesis addresses.
Otherwise this is a play-toy for traders and arbitrageurs, and post buy-back you will have the same issue, but with a much lower PCV.
I think this is a good summary. The position I would support:
Let FEI holders out at some small loss. It isn’t going to help the protocol if it’s filled with people who just want to leave.
As mentioned the redemption should be limited to genesis FEI post -genesis swap only. (We don’t want to reward those buying FEI now in preparation for this exit.)
Require airdropped TRIBE to be returned when FEI is redeemed.
$0.95 seems like a reasonable compromise value. (Although it does mean ~6% loss on FEI*)
Time box the redemption to a reasonable number of days to have closure, and move on with the project.
Tribe holders will still face the greatest “losses”, but that is the risk of the governance token. It’s also a great way to think about a long-term investment in a project – the goal is to return many multiples of the genesis value. These differences in the initial value will be de minimis if the protocol is successful.
*Open question: Should we use the ETH price at time of genesis close or current spot? Or split the difference?
One thing that does concern me is that this is a very large target for draining. Materially larger than many others, so it may be a good idea to isolate most of the PCV that isn’t needed for “daily” transactions into a safer contract set if possible - at least for some time, and certainly when deploying new DI-style changes.
FYI My position: Preswapped a portion, and bought some more TRIBE afterwards, (although I sold some back later at a loss). Still in FEI, Tribe, and LP Pool
My final advice for this team - find a trader and run this buy-back by them. This community-driven touchy-feely BS of being nice to the poor FEI holders by offering them $1 bullshit screws the project. You are living in a theoretical world, and this is anything but theoretical…get some practical advice from ppl who understand currency trading.
FEI holders paid 0.000485 ETH per FEI and now stands to get back 0.000463 ETH per fei at $1 redeem. The difference is pocketed by the system and indirectly by tribe holders since it seems that the new narrative is that the PCV belongs to them. The fact that we are now talking about $0.9 redeem on top of that is pure greed
There has to be a penalty for jumping ship early and there should be a reward for holding and going long. The LP stakers should be rewarded for sticking with the team’s long term vision. I vote for .90.
Read through this and these proposals multiple times. I think it’s all a step in the right direction.
I also think a $1 redemption is good. It’s good marketing. I hope one day FEI finds its own price away from the USD, however. But regardless, it’ll look good to potential users.
I am 100% on board with helping @oecan-x and getting back their FEI. If it’s retrievable easily, it’s our duty to help our fellow folks.
how do you know i got rekt sir? & whats a whatpaper? do you think i would want the project to go on if i were to be rekt? or that i would want to continue the fraud with J & his VCs?
Gotta limit redemption to the Genesis participants if they burn the tribe airdrop. This will shake out the genesis dumpers while not attracting a huge front run to buy Fei at $.83 and sell at $1. If reverting genesis doesn’t relieve enough pressure, then we can revisit.
FEI holders paid in ETH and the extra ETH is staying in the PCV. This is neither profit nor neutral
If reading that you think “well, if ETH was going in the other direction you surely wouldn’t want to foot the bill” you are very right but that is also how people feel about Tribe preswappers asking for a refund.
What is stoping arbitragers, whales, or people that want this project to fail to come in and buy FEI for cheap and then sell at the buy back event?
The current price of FEI is unlikely to drop and if the vote passes for 1 or 2 then it definatelly wont drop before the vote. So then the risk for arbitragers to buy FEI before the buy back is minimal, but they will easily and surely make profit after selling it at 1 dollar.
As was mentioned elsewhere, taking into account the bonus received by all Genesis participants, a fair price for redemption would be somewhere around $0.9 per Fei (subject to calculations). However, if we proceed in this direction, there is a serious chance that confidence in Fei’s ability to guarantee peg = $1 will be tarnished forever in the broader crypto community. Subjective reputation is a real thing, it’s not always fair, it is a product of all sorts of FUD, misconceptions and false memories. As we have already witnessed, the crowd is not particularly bright, has short memory and little attention to details. Yet to to be a success as a stablecoin Fei has to win this very broader crowd.
Are you prepared to fight for fairness at the expense of the future of the whole project? I don’t think it’s a good idea. Some say we shouldn’t cave to the mob pressure. I’m saying we shouldn’t put the future of the whole project in peril for the sake of a principle.
Now, obviously those who redeem will get extra , and someone has to pay for this. Currently extra to redeemers will be paid essentially from preswappers’ pockets. This situation happened due to the confluence of certain mistakes in economic incentives and mechanism design as well as things beyond anyone’s control (that’s why early investments is a risky business). I’d personally find it fair if the team shared financial responsibility in some form.
Very sensible take but now that TRIBE holders, with seemingly a nod from the team, feel that they own the ETH in the PCV, this opens many more lucrative possibilities not necessarily based on the success of the fei project.