Propose using $5m USDC to buyback JPEG over a period of minimum 3 days or up to 30+ days (exact period at core team’s discretion).
BACKGROUND AND MOTIVATION
Over the past months, the crypto markets have indisputably become bearish and prices have dropped anywhere between 40-90% for most major tokens. However, JPEG has been particularly hard hit. pUSD peg is indisputably resilient, has never been in doubt, and has held perfectly since inception. The protocol as a whole has been in excellent shape. I feel confident to propose a $5m JPEG buyback should the community+token holders approve.
JPEG seems to be the most undervalued out of all other volatile assets JPEG DAO could hold on the balance sheet with ETH. At these prices, it is probable that using capital/profits to purchase JPEG is the best use of capital dollar for dollar spent.
It is important to keep some cash, $10-15m seems sufficient. I propose to expose ourselves much more to ETH as has been proposed by @MrPink69 here and to launch a JPEG buyback program.
For example, a $5m JPEG buyback (and burn) at $0.001 / JPEG would retire ~5b JPEG, approx 25% of the circulating supply (source). An incredible return of value to token holders at such prices.
For: Approve $5m USDC to buyback and burn JPEG during 3 days or up to 30+ day period.
Against: Do nothing
I do like the logic where this is coming from, but don’t think buyback and burn programs are value accretive for crypto. There’s been numerous examples of this and it’s terrible value accrual. It seems to work somewhat for equities but not for crypto. Also this has a big chance of being front run and tokens just sold on any buyback pumps that basically nullify any benefits while making treasury lower.
Instead I support buying ETH over the next 1 month to 6 months and selling at a higher, later price increasing treasury.
Agree with Mr Pink, not much value added to long term.
Just provide profit for short-term trader.
This may be useful to us, but not with the parameters in the OP, recommendations:
Instead of “Approve $5m USDC to buyback and burn JPEG during 3 days or up to 30+ day period”
“Give the JPEG’d DAO the authorization to buyback JPEG’d via stablecoins or ETH at any given time below treasury backing”
I agree. I’ll let you post the new proposal. My English is bad