Great proposal @Jake, thank you! Implementing a structured buyback scheme like the one proposed makes perfect sense. We’ve been buying VDO off the market ad-hoc for a while, but it needs to be formalized and integrated into our tokenomic model, which this proposal achieves.
This proposal was discussed during the most recent council meeting, and these were the generally shared thoughts, mostly related to the 15% allocation towards ETH:
- The council will manage our treasury and assets regardless of this proposal, and may for example choose to sell (more of) our pent up commission at certain points in time. I think it’s better not to be constrained by the need to sell 15% every month. Sometimes we may want to refrain, and take calculated bets on directionality, and sometimes we may wish to sell
- The more we commit to continuously selling our commissions, the more we detract from our ability to be a bet on the alt L1 space / an “index”.
- Since this was initially posted, we now also have a proposal (VIP
2) which may well pass and be implemented in the near term: getting rid of taxes. Up until this point we’ve been drawing from taxes entirely, and I think we need some breathing room to manage our treasury more freely in this transition period
TLDR I think this proposal is great and needed for our tokenomics, but would prefer it amended to only implementing the 25% VDO buyback to start with, letting the council manage the rest as needed.