[Discussion] Distribute DMG to DXD Holders

dxDAO
1

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

Why?

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.

How?

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.

Why 10%?

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.

Thoughts?

Comment below :slight_smile:

14 Likes
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Wow, this is genius! I would love to get some DMG and the marketing hype and awareness to DXdao would be insane.

6 Likes
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It’s a great proposal, it would simultaneously create great awareness on DXD pricing and at the same time de-leverage our market exposure without compromising future value.

4 Likes
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I’m in favor of this.

3 Likes
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This seems like a good idea to me.

2 Likes
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10% of the profits from holding DMG should go to DXD holders, not 10% of the DMG. This is going against the whole point of holding DXD.

3 Likes
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On the contrary, it would be a good way to generate realized revenue for DXD holders. As of now there are no active revenue streams to facilitate DXD buyback. What is going to attract investors and attention more? Having investors wait for 10% of the (also as-yet-unrealized) DMG revenue to fill up the buyback reserve, or utilizing the dxDAO’s decentralized governance framework by a taking a decisive, active measure in generating immediate return-on-investment for DXD holders?

2 Likes
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Yes, this is what you signed up for when you invested in DXD, for revenue, not “airdrops”. Giving DMG (A governance token, mind you) to DXD holders, who aren’t necessarily developers, or care for governance, is both not the point of this DAO, and will hurt how it’s perceived by other daos (who might considering offering similar grants later), I’m certain that the DMM foundation expected the DXdao to use this granted DMG to govern and reap revenue, not hand it over to people who aren’t even in the DXdao.

2 Likes
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this is what you signed up for when you invested in DXD, for revenue, not “airdrops”

Must revenue reach investors only in the form of speculation on the future value of that revenue? During the early days of the token sale people were (mistakenly) quite enthusiastic about receiving dividends in the form of “airdrops”, and, speaking roughly, it was a model initially considered by the devs. The prospect of using the treasury funds to buyback DXD has been floated around since at least the beginning of token sale. And there have been various proposals for other ways to reward DXD holders as well.

hand it over to people who aren’t even in the DXdao

I’m inclined to point out that the 10% of the DMG in question will be given exclusively to those “in the dxDAO”; that is to say, DXD token holders. Whatever one might assume about the DMM Foundation’s expectations, dxDAO has a clear interest in rewarding and incentivizing investment in dxDAO itself.

3 Likes
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I’m all for this decision. Rewarding believers in the DxDAO project and at the same time making the treasury grow. PRO vote

12

This would help to deleverage from DMM while also increasing the value of DXD. I see it as a win win, for both DXD holders and the DXD team

1 Like
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You already replied Joey, this isn’t an anonymous imageboard, to astroturf properly you’ll need to make a new account. But you already know that, don’t you? Glad so many people here joined 1 day ago with you to show their support to this great proposal.

1 Like
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I for one can’t think of a worse proposal than this one.

DMM gave DXdao tokens to help with governance and as a strategic partner in decentralization know-how. If DMG tokens were to be airdropped to DXD holders it would be an extremely insulting thing to do imo. DXD holders are not entitled to free tokens, if you want to earn you need to put in the work (such as earning rep for voting). DXD holders will get profits generates from dapps, not free tokens just by holding.

I sincerely hope the tokens are stored in the DAO’s reserves and stay there, instead of being sold after they are airdropped.

7 Likes
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Hey Scoopy! Thanks, I am newer to DXDao so I didn’t know there was a limit to one response! Guess you’re the only one who can have more than one response! It’s all good man, just an open discussion. Enough anger in the world! :sunglasses::+1:

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maybe they should be released in a vesting schedule to DXD holders to align incentives and plug the conflict REP holders and DXD holders have with this proposal.

1 Like
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There needn’t be a conflict between REP and DXD holders. Both have an interest in the financial growth of dxDAO and increased awareness of the project. A relatively modest distribution of DMG to dxDAO investors now could bring in a lot of ETH through bonding curve DXD minting, while also increasing the value of the 100k DXD currently held in the treasury, and, critically, create more awareness of the project itself. More capital and more brand awareness can then have a snowball effect, as more and more projects are attracted to the idea of collaborating with dxDAO. The faster the snowball gets rolling, the better.

And, I might add, dxDAO can potentially buy back the amount of DMG distributed at a later time. It’s a case of “spending money to make money”.

5 Likes
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I agree with everything you said, but for those that are steeadfast against the idea a vesting schedule distribution of the DMG might be something they will come around to. I see big ++ to doing a modest distribution.

2 Likes
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I can’t find any problems with doing so. It’d be a amazing publicity for dxDAO. The only caveat might be the presence of some agreement between dxDAO and DMM regarding usage of funds. If dxDAO has the authority and full permission over what to do with the DMG funds I am in full support with this idea. :grinning:

1 Like