Scope: Modify current rebase mining event set to end on 6/13
Objective: Extend redemption pool funds in perpetuity until exhausted, and modify options airdrop to incentive buying & holding during each 30 day event.
Overview:
Continue to roll over redemption pool funds for subsequent rebase mining campaigns until exhausted
Split options distribution into 2 parts and adjust logic to focus on rewarding those holding/increasing their positions.
Details:
To unlock funds within the 30 day mining event, more than 5 positive rebases must have occurred, and each rebase that occurs afterwards increases the percentage of the pool to be paid out more than the last one. Any unused funds would immediately carryover into the subsequent 30 day period and start a new mining event, where the same 5 positive rebases are required to unlock funds. This will continue in perpetuity until all funds are exhausted.
Beginning with the next event, options will be airdropped based on 2 snapshots and with adjusted logic:
Re-allocate options at the start of each event based on behaviors in the preceding event – Incentivizing holding by increasing options of holders through use of a multiple. This re-allocation has no bearing on preceding events options distribution, but will inform options received at the start of the new event as follows:
Wallets that HODL and/or sell <25% bDIGG, carry over options w/ multiple applied
- For wallets that sold <25% of position, carry over would be weighted accordingly.
Wallets that sell <100% & >25% bDIGG, receive options through new snapshot with root applied
Wallets that sell 100% bDIGG, receive no options in new event
Allocate a percentage of options to buying behavior DURING the event – These options will be based on a snapshot that occurs during the event and based on increase in bDIGG balance. To level the playing field, we are applying a root calculation to new purchases of bDIGG that normalizes options distribution around smaller purchases.
Good proposal, but DIGG is unfortunately in a spiral and similar to other Algo’s has got to a point where holders have lost faith. A MAJOR intervention is needed to get back to peg. The rebase mining V2 is just the start, a more dynamic intervention is needed in order to go back up. That was intended by the Stabilization Fund which is on hold until we are above peg. So we are stalled till then. Maybe dipping more into the rich BADGER treasury to assist in returning to peg is needed.
Another issue is that DIGG rewards are being sold daily adding unwanted selling pressure , since the NEGATIVE re-base is actually cancelling the daily DIGG rewards.
Looking at the data 85-90% of holders have still held during the last month, so it’s not that people have lost faith, just not enough people buying, while 1 whale dumped. Now looks like there’s more diamond hands holding, which is what is needed for digg to reach peg.
Currently all digg rewards are going to digg holders. I think KPI options will work this time, as long as Elon Musk doesn’t try to manipulate the market again.
The stability vault is ready and waiting for positive rebases.
Finally this is only the first step, there’s other discussions around NFTs and other ways that will help.
Unfortunately, this plan doesn’t have enough specifics. If I remember correctly, the amount of DIGG that was set aside for distribution was around 80-90, and at this time, it has decreased substantially in USD value since the first phase. We need the treasury to be GENEROUS and match buyers with 100% or greater rewards. Imagine the following scenario-
We match buyers 100%, and plan for approximately 20 million of buying pressure.
We make rewards vested, so buyers can’t just dump everything at the end of one month.
The DAO sells some of the newly minted DIGG for wBTC to buy into the inevitable selling pressure, keeping positive rebases running through the vesting period.
The more buying pressure, the more newly minted DIGG we can sell for wBTC to buy through people collecting their vested rewards. I can’t give you the math on it, but my overall point is we need the rewards to match the risk buyers are taking when the buy this token.
35 days to be specific. No doubt it has sucked. During this same time a major position exited and accounted for >50% of selling pressure, while >80% of community held. DIGG community is strong and adjustments to options program incentivize buying even small positions. Join us. Appreciate you taking the time to comment.
Appreciate your support and comments. You are correct, more is needed… this is just the start. Also agree that additional DIGG funds from treasury would be helpful since initial pool of 83 funds has decreased due to negative rebasing.
Full transparency, I had included a bullet point that stated, “up to 10% of treasury funds to be included at team’s discretion.” I removed it as any requests in additional funds would go through a BIP. Intent is to re-launch KPI options quickly and then request a BIP for additional funds. Team is supportive, just wanted to be smart about how to approach since time is of the essence. also, we can always retro-actively increase funds if BIP is passed to increased in a week or so.
Again, appreciate your comments and support. More to come!
Wallets that sell >25% & <100% do not have multiple applied to carryover options. Since these wallets did not completely exit their positions they are still entitled to options, but would follow same path as new buyers and receive options via snapshot with root applied. Since this snapshot is intended to encourage smaller purchases, it is likely they will not get as many options.
The idea is to incentive holding majority of position as you keep options from preceding event and multiple applied (e.g. 1.4) has potential to increase options by 40%. To be clear, multiple has not been decided yet, but will share everything in coming days.
That said, I think I can more clearly state this above, will adjust language accordingly. Appreciate the comment!
100% DIGG holders are the true diamond hands! Large whale exiting position accounted for ~57% of 282 bDIGG sold over last 30 days. During this same span, 85% community held… and even increased position by buying ~53 BDIGG.
Elon may have impacted price, but buying/selling impacts equilibrium. If the above had not occurred it is likely DIGG would have maintained equilibrium. Community is strong. Now we are tweaking options to continue in perpetuity, and reward holders by applying a multiple to their current options and also allocate % to new purchases with root applied. This root applied levels playing fields and allows even small purchases to receive options (although there will likely a minimum communicated later). Encouraging new purchases across >2,000 wallets that HODL, gives community to mimic whale purchases.
Much more coming too! DIGG Dojo is strong and growing!
Love it, great work @wezekbruh. The team is ready and willing to help with the deployment of this plan.
For those that think the redemption pool needs an increase in funding its something the team and wezek + crew are open to, just need to have some thoughtful framing for how to do it in perpetuity so were arent putting BIPs in each time.
Are there any metrics that we can use to track the progress of the work on the peg apart from the obvious ratio to BTC price? Which metric/s is the team using?