XYZ token buyback

#1

Hi frens,

I got an idea I would like to share with you and know your opinion about it. In the financial word, when the stock price decreases under what “might be considered a true value of company” a sharebuyback is used to buy the undervalued stocks back. I do believe that we should do the same at Universe and publicly show to the crypto community that our DAO believes in our token XYZ and is willing to buy it back.

How should it work?
I do consider the current fair value of $XYZ to be $0.15+ given all the risks involved in the project (if interested I can show you my approximate evaluation). I would like to vote for taking 250ETH from our treasury (there is currently 775ETH) and buy back $XYZ on SushiSwap. We would buy $XYZ for 10ETH (including gas fees) a day for 25 days in row. The traded amount on SushiSwap for pair $XYZ/$USDC is about $1.5+M a day so we should not be able to pump the price as well as we would not create a space for someone to sell their $XYZ tokens.

I do consider that it would sell a strong signal to crypto community that our DAO currently considers our project significantly undervalued and worth being long.

What is our take about it? Be constructively critical please :slightly_smiling_face:

1 Like
#2

No. This does nothing to change fundamentals and is a purely speculative move to increase price at the expense of funds that could be put to productive use. There’s no guarantee it isnt met with hidden sell pressure. And there’s a decent amount of downside risk that we’re spending money on price manipulation instead of building.

Let the market be the market. And let’s not pretend what the real reason for buybacks is: pumping bags at the expense of long-term fundamentals.

1 Like
#3

No, I think this is short term shenanigans and will not benefit the community longterm.

1 Like
#5

agreed with ltm. although a good option to consider for the future, there is little guarantee of any real foundation being built with a buyback right now due to the immaturity of the xyz market. Could be something to keep in mind for the future when it does smell like a pump tactic.

#6

I will no longer pursue the idea of XYZ token buyback because the community is right that developers should right now mainly focus on development and do not be distracted with anything else.

However, I do strongly disagree that I have suggested some “shenanigans” that will not benefit the community longterm or that my proposal is driven by willingness to pump the price and sell. My suggestions is inspired by the stock market world. There are several companies that took advantage (during the covid crises, etc…) of their share price weakness and bought them back. Would you call it “shenanigans”? No, they just wanted to buy back their shares because their fundamental value was much higher than their price. It was very profitable long-term move for shareholders.

Let the stock market be the stock market, I know the main reason for Universe is to build and not increase the XYZ token price because it is secondary. I am aware of the fact that we already have a lot XYZ tokens in our treasury. But if we want in the future align interest of others with ours at Universe, then we will have to incentivise them with XYZ tokens (a lot of tokens). Here I believe that XYZ tokens bought for ETH could be used for productive use. As the future income stream to the treasury will be mainly in ETH, we should have enough of them.

All in all, I do agree let the market be the market and fully focus on development :wink: