Hi all, I’d like to gauge interest on the idea of distributing DMG from the treasury to DXD holders. If general consensus here is in favor, I’ll work to put together a formal proposal for voting.
Distribute 10% of the treasury’s DMG to DXD holders
DXdao is entitled to 2% of the total supply of DMG. Now that the public sale has terminated, that DMG should be delivered in the near future. This 2% represents 5 million DMG. At a current DMG price of $1.50, this translates to an injection of US$7.5 million to the treasury.
Currently, the dxd treasury is dominated by Ethereum- roughly 5,250 ETH worth US$1.2 million. Of course, 7.5mm in DMG, followed by 1.2mm in ETH, then some small amounts of other coins isn’t a healthy balance.
It’s clear that deleveraging out of DMG, at least in some capacity, is a good idea to protect the longevity of the treasury. One way to do this is to pay for contributions in DMG, another is to outright sell some DMG back for ETH.
The first case likely would be too limited to make much of a dent. There isn’t much precedent for the second case, and as such would require some timeline in terms of agreeing upon and enacting a DMG investment plan.
In the meantime, we can deleverage by returning DMG to DXD holders. In doing so, we are able to circumvent an official selling timeline/action plan, as the distribution to holders will be reflected in the price.
With roughly 24,000 DXD in circulation, 10% of the total 5 million (500,000 DMG) translates to just over 20 DMG per DXD- a sizeable $35 airdrop for every $100 in DXD owned (at current prices).
This decision will provide upward market pressure, and as DXD prices once again eclipse the emissions curve, the treasury will grow as a result.
Additionally, this move would encourage the market to better price in the treasury embodied by DXD.
Set a snapshot date, and aidrop to all addresses at that point in time. Could be a week after DMG is delivered to DXdao. May need to blacklist exchange addresses or work with exchanges beforehand to account for delivering DMG to liquidity providers on Uniswap or otherwise.
Documentation suggests that DXD holders will share a 10% split of revenue generated by DXdao investments (like Mesa and Omen, in the near future). While the DMG allocation doesn’t necessarily reflect a traditional revenue stream, I do believe it is fair to assess it as revenue received as the result of the DXdao framework itself.
Again, this doubles as an act of good faith for investors and speculators. DXD holders have yet to earn any revenue share, and there seems to be some concern as to how that will actually play out. This doubles as a proof-of-concept that DXdao has control over its treasury and allocates accordingly to holders.