7f581a523c8e58a3df5a82652da9517d255b0c2c
Proposal rescinded.
This is a proposal for the DAO to begin turning it's unused tokens into SPS to remove counterparty risk, build up a store of SPS to be utilized for future rewards once the initial distribution phase ends, and to take advantage of the current price. The structure of converting these assets into SPS will be as follows:
Each week the DAO will convert $20,000 worth of unused tokens it owns into SPS via the SPS:BNB pool on Pancake Swap as long as the current price according to CoinGecko is below $0.02 per SPS token. This will continue until the price either rises above the target of $0.02 or the DAO has utilized all of the tokens listed below it sees fit.
As of the time of writing the DAO is in possession of 571,323 USDC & USDT, 296.36 ETH, 73,386 BUSD, 98.9 BNB, and 116,251 HIVE. The order priority for conversion will be as follows: First BUSD, then USDT, then USDC, then BNB, then ETH, and lastly HIVE.
This proposal will expire after 52 conversions or 2 years from the date of first conversion. At that point, if any desire or need by the DAO to continue converting tokens remains, a new proposal will need to be created and approved by the DAO. Any of the specified tokens not converted after the expiration of this proposal will remain in DAO custody until addressed by a separate proposal.
Personal thoughts and disclaimers:
This proposal is entirely my own idea and has no reflection on the wants or desires of the Splinterlands team or company (Steem Monsters Inc). I am not acting as an employee by making this proposal and the proposal should be viewed entirely from the perspective of me, as a significant SPS holder and long time Splinterlands community member, making a suggestion of how the DAO could more efficiently utilize its assets to offset counterparty risk, show that the DAO has faith in its own tokens over third party tokens, and build a stockpile of SPS that could fund rewards for years to come.
Personally I feel that any value held by the DAO that is not working for the DAO to increase the value of SPS is dead inflation. While DEC, the DAO's stable coin, is under peg, we are holding other stable coins that have counterparty risk. This signals that we have more faith in those tokens than our own. For the SPS DAO to succeed and DEC to reach and maintain peg, the SPS DAO has to operate as an SPS maximalist. It should value SPS and by correlation DEC being at peg above any other tokens.
I chose to structure the proposal this way to eliminate any large impact on the market and to de-risk the DAOs conversions by essentially making the DAO dollar cost average into SPS while it's below the target price. If the price rises, the DAO will continue to hold the tokens, which can be utilized and addressed by future proposals.
If the proposal were to pass, anyone could still come up with other ideas as of what to do with the tokens besides just holding them in the DAO wallets. They would have somewhere from 52 to 104 weeks from the time this proposal passes to get their own proposal passed and utilize whatever portion of the tokens remain at that point however the DAO sees fit.
The expiration is mainly for housekeeping purposes. 52 conversions maximum will help account for market fluctuations. The 2 year time limit means that if conversions start and stop due to minor price fluctuations over the target of $0.02 and back below it, there is still time to utilize the approved funds without need of a new proposal.
If you read all this, I'd like to offer my sincere thanks. Hopefully that indicates that you also care deeply for this ecosystem and want it to succeed as well. Whether we agree or disagree on how to get there, all I ask is that you keep the conversation respectful. Much love.