Hi @SirJoseph, thanks for the reply!
1. Enhance the Buyback Mechanism Details:
o Pre-share the schedule for repurchasing $VDO tokens on the open market.
o Clarify whether the buybacks will be automated via smart contracts or conducted manually; I presume the latter.
o Specify the frequency of the buybacks.
o Identify the party responsible for executing the buybacks.
The cadence for these treasury operations would be monthly, on the first day of the month (subject to signer availability). The party responsible for executing the buybacks is The Validator Foundation (the DAO), and the buybacks are executed by community multi-sig signers manually at the behest of the DAO.
2. Wallet Multi-Sig Details:
o Provide information on who manages the team’s wallets.
o Identify potential points of failure.
o Discuss security measures and protocols in place to safeguard the wallets.
The team hot wallets are currently held by @Murakamikaze, but the treasury is a multi-sig wallet comprised of 5 community signers. These have not been disclosed for privacy purposes, but a consensus of 3 signers is required to execute transactions currently.
3. ETH Buyback Strategy:
o Explain the timing for when ETH will be purchased, considering market sentiment and other relevant factors.
o Clarify if this will be conducted on a monthly basis.
o Specify the address where the ETH will be held.
o Detail the intended use of the ETH, whether for day-to-day management or to build the buyback treasury.
This will take place at roughly the same time as the $VDO token buyback for efficiency. The intention is not to “time the market”, more to sweep profit into Ether which holds a more stable value than the underlying accrued rewards.
The Ether accrued will also be held by the treasury multi-sig at the same address as noted in the proposal (this is already specified in the proposal itself during the final bullet).
The intended use of the Ether is to be held on balance to finance the foundation’s operations.
4. Benefits of Directing Tokens to the Treasury:
o Include potential benefits such as ecosystem grants to incentivize builders and developers within the ecosystem.
This is out of scope for this proposal, but could be a great proposal once the DAO has more structure!
5. Stakeholder Communication Plan:
o Develop a communication plan to keep $VDO token holders and other stakeholders informed about the progress of the activities outlined in the proposal.
o Address the issue of missed deadlines and how regular updates and transparency can improve accountability and trust.
o Emphasize the importance of frequent buyback announcements to attract attention to the platform.
This is also partially out of scope for this proposal - the purpose of the proposal is to outline the mechanism and allow token holders to enact it into being. These points regarding announcements are separate.
6. Utilization of Remaining Revenue:
o Explain how the remaining 50% of the accrued validator rewards will be utilized.
They will be held on balance and potentially swept into more stable assets manually. The purpose of this proposal is to set in stone a fixed operational buyback and revenue sweep, and allow the treasury to manage the remainder of accrued assets as they see fit (with the security of knowing that a fixed amount has already been sold).
Other Considerations:
• Explain the rationale behind the 25% allocation for buybacks. Why not allocate a higher percentage?
The proposal is designed to allow token holders upside in electing for higher numbers as the DAO progresses. The reason the initial number is not higher is to ensure that there is adequate value accrual to the foundation first and foremost, and secondly to token holders during this initial DAO bootstrap phase.
• Clarify the text regarding revenue reallocation rather than rebalancing. Consider using a pie chart to visually represent the allocation of resources for better clarity.
I’ve added some visuals to assist with this now, thanks for the note!