Thanks for the lengthy reply. I’ll take a look at the video.
Ezra’s post described the mechanics (i.e. HOW), which is a lot different from the concept (i.e. WHY). Even so, his “how” was very light on details - how much, how often, how do you measure if it is working/not working… The “why” I am seeing is a bit of a stretch: “we auction GEN to be locked in order to give people REP when they lock it because people who own GEN will be invested to help.”
This ^^^ makes sense to me theoretically. How many people have lined up to purchase GEN in the first auction? How competitive do you anticipate the auction will be? How much GEN do you plan on auctioning in the first auction, subsequent auctions, and how often will auctions happen?
Auctioning GEN to give REP means there will be scheduled REP dilutions that may adversely affect those who don’t participate in the auctions. Imagine proposing a job that would give you 1% REP but knowing your 1% REP will only be worth .5% REP by the time the job is done due to X auctions happening in-between, so you logically inflate it to 2% REP, and everyone votes your proposal down for being greedy when you were being rational. Alternately, GEN auctions are worth so little REP that nobody wants to participate in them. It’s a non-trivial problem that may have unexpected (game-theoretical) consequences. This is why I ask for real, solid, specific answers in the threads.
As far as the concept goes (e.g. the “why are we doing this and what are the ramifications”) -
I’m still not solid on the exact “why” - is this a way to fix something broken (e.g. people with REP right now are not doing a good job, so let’s juice that somehow)? Is it a way to simply raise money (GEN auction = $$) and if so how much GEN does the DAO own and how much will they auction and how quickly (asked before, I know). I’d love to see a pros/cons breakout of doing these auctions. Does locking GEN and then unlocking it, en-masse, at a specific moment in time threaten a liquidity flood that kills the value of GEN?
Say GEN is, value-wise, not doing so well relative to other investments. 1yr after the first auction, 5M GEN are suddenly unlocked for 10 separate people who bought it and some of those lockers run for the hills to dump or slow-drip GEN to flip it for a better investment. This liquidity flood would either massively drop or suppress the value of GEN. Is this type of scenario being discussed?
Are there alternatives to auctioning GEN to be locked for REP that achieve the same outcome, but this method was deemed the best/safest/superior one?