DRAFT: $MODA Buyback Proposal

Abstract:

Due to slow market conditions and speed of development, the MODA token price has fallen well below expected levels, below the price of any private token pre-sales. To demonstrate the commitment to the MODA community, and the belief in the technology that is coming to market, the core team propose a Token Buyback Program of the $MODA token.

Improvement:

As outlined at https://docs.modadao.io, revenue from the MODA network will be pushed into a Sustainability Loop, designed to feed the rewards pool and create further funding for innovation and grant opportunities. Because the core team believes the MODA token is currently undervalued, the buy-back plan is expected to have a beneficial impact on treasury value and the sustainability loop (a community-governed vault where funds can be reinvested, giving $MODA token holders more control over the project’s priorities)

Impact:

This design allows the sustainability loop to circulate $MODA without issuing any additional $MODA than the predetermined inflation curve. Accumulated $MODA can be used to benefit the MODA ecosystem, both now using treasury funds and in the very near future using network revenue from the initial sale and secondary sale of NFTs using the MODA Music3 framework. This program increases confidence in the project and commitment to the governance model.

Solution:

Token buyback program. If the proposal is successful, the core MODA operational team will execute buy orders on the open market using CowSwap to avoid any MEV front-running and/or QuickSwap if any arbitrage opportunities arise between exchanges.

Up to $50,000 USDC of MODA treasury and a % of MODA’s network revenue from Genesis NFT sales will be used to buy back $MODA tokens and stored in a public wallet. Under this proposal the team will also explore algorithmic buy-backs on centralized exchanges.

The planned governance roadmap will define the distribution and usage of the tokens at a future stage. Proposal examples could include but are not limited to, additional staking rewards, bounty programs, partnership opportunities, liquidity mining opportunities or token burns.

Next Steps:

Community feedback and make proposal live.

2 Likes

I’m all for this. nice one.

I think this is a great idea, team. I like not diluting the coin by creating more abundance of coin but instead buying back the existing coin.

1 Like

yeah, dig it!

great initiative.

I agree with Austin with regards to not diluting!

Love this initiative! So basically the core team is offering to increase the token value with a buyback and also allowing us to decide how this amount would be invested in the future?

Yeah I’m all for it.

I agree with this proposal. It’s always going to be possible for $MODA to build treasury in ETH or USDC but the MODA supply itself is fixed. It makes sense to buy it back when it is under-valued. That said, i’d like to see network revenue funding the buy-back sooner rather than later, and I think building liquidity is also important not just sitting idle on tokens.

1 Like

I’ll be frank, I’m not familiar with all the terms and details of the proposal set out here (am trying to learn).

But in principle, if it benefits $MODA holders (by generating more control / influence in the community) and doesn’t dilute the overall pool, then it seems logical.

For my part, I support every point of this proposal. It definitely adds value to community members.