I really dislike this idea. It seems incredibly short sighted and to be frank feels like a rug pull of value waiting to happen. We are basically saying, as current DEC holders, give us the $500k that the DAO has so we can dump our DEC on it.
Obviously your intent isn't malicious but that intent does exist out there.
If this does pass I'm going to dump my DEC and start dumping my SPS over time as it will ahve taken what outside value the DAO has and eradicated it removing all stability of the game. Keep in mind the dev team right now is really struggling. I doubt the SPL team can support ongoing operations at their current cash burn rate for more than a year, if that.
This is the exact danger we face if this proposal passes. I wrote a few weeks back about how the DAO keeps voting against its own interests, and I fear this proposal too, will be one of those.
Exactly, its constant short term bandaid type voting. People are not looking to stay in this game long term any more and their votes seem to prove it.
It's always trying to push the flywheel effect when it really doesn't need it. I wonder if any of the yes voters even know how much DEC is currently available for purchase? Because if they did, they would quickly realise we are one decent DEC purchase away from peg and flywheel effect...
Perhaps it should be set as a stabiliser, much like the HBD stabiliser.
Agree we should only buy DEC at favourable prices when it concerns the DAO, but using the DAO as a failsafe for DEC/PEG will give bad actors a benchmark to work with. That is in essence what the proposal is trying to do and in a bull market would be a safe bet. Your ideas are warranted but that is not what this proposal is about. We are not in a bull market and bad actors will exploit the failsafe of this proposal until it breaks. Then we go down due to the overcreation of DEC through SPS burning and buy-resell from bad actors outside of market demand. 500k is alot of money with even more SPS still to be minted and once we break it, we end up devaluaing the DAO and relying on playerbase to once again fight through natural demand to slowly creep back to peg again...This may not happen immediately and maybe land staking would delay such effects but outside of a bull market we will place a huge risk against a predicatable tumble and that is a risk anyone with meaniful investment should not entertain.