With respect to the new proposal placed by the team, in case of option 1 and 2, the redemption should only be made the people who participated in Genesis. If it’s not done that way, people can easily buy FEI from the market with their motive being only to sell when it reaches its peg. It will just create more sell pressure and that will be at the cost of the PCV. No matter how many redemptions we do, people will then only buy FEI to sell it at peg which happened in the Genesis and is the reason we’re here in the first place. We’ll be stuck in this cycle till PCV goes to zero.
In addition to this, there should be a precondition for redemption. Anyone who wants to redeem FEI at the cost of the PCV should first burn their TRIBE airdrop. This will help us filter out free loaders. Otherwise, people will redeem FEI at the cost of PCV and at the same time leave with a free airdrop. I believe if we burn the TRIBE it tips the scales evenly and is fair to both FEI holders who want to leave and TRIBE holders who want to stay.
(Idea of Discord user @WallStreetQuant )
This is a no brainer. I find it hard to believe how this was not highlighted in the original proposal. It should be applicable to ONLY genesis participants.
Seeing the instant rise in price of FEI it seems like we will just repeat the Genesis situation again if we don’t do this. Only this time, it will be at the cost of the PCV.
This doesn’t change much. The amount of FEI circulating is less than the amount bought during Genesis. Everyone holding FEI right now will still be able to sell it at very close to $1.
There is FEI that is staked. There are people who don’t want to abandon the project. The only thing this changes is that people who bought after the proposal was placed thinking of making a profit with this situation cannot do so and hence we get rid of unwanted sell pressure.
redemption for Fei genesis investors at $1, with the precondition that all airdropped tribe will have to be burnt.
I think this proposal is fair in that it essentially provides an undo button for any people who aped in without unduly rewarding arbitrageurs. Investors can opt to get exactly their money back (minus gas fees) no more, no less. It is also balanced for both Tribe and Fei holders by burning Tribe when Fei is redeemed. Let me know what you think of this.
This is not a good idea, only benificial for the people speculating on TRIBE at the short term. Peg fei to 1 is the only way the project will success. The way to let Fei peg to 1 rely on the reweight and short term the PCV buyback and also the market confident. Only let genisis Fei peg to 1 and waiting weeks for coding and auditing just let the project die.
Seriously, there’s a few hundred million (!) extra in PCV because of all the people who exited. There’s an opportunity not to blow up the project completely and you’re going to quibble.
I’m not going to ever trust a stablecoin whose team who votes against unlocking the collateral in this circumstance. Who would?
Huh? No it’s not. Genesis buyers of TRIBE have the largest allocation of TRIBE, short of team + investors which is locked supply. They didn’t dump. The price is 1/3 of what Genesis buyers paid for it right now because 100% FEI buyers dumped on the market and sold their airdrop. If they want out with 0 risk, they should also have to burn their TRIBE reward.
The entire burn mechanic of Fei, from the beginning, was laid out in the whitepaper. FEI being redeemable for $1 in ETH at any time, with no burn risk, was never part of the protocol.