What It Means to Have a Treasury for Romans and To-Be-Citizens: DIP-4 (Explainer)
Dear Romans and to be citizens,
You may have heard by now that a proposal to create a treasury for the sole benefit of the community has been launched. If you haven’t, this is going to bring you up to speed.
This changes everything and for the better. More importantly, this is all done by putting to good use the community-driven allocation of 15M $DEXTF.
Tokens that currently are unproductive, and that could potentially generate yield, support the purchasing of XTF fund tokens. Proceeds from the treasury will then be used to buyback $DEXTF at market prices and burn them hence decreasing supply.
With DIP-4, $DEXTF supply becomes effectively deflationary.
Of course, the question will be, how does the protocol intend to convert these 15M $DEXTF into major tokens such as WETH, ETH, BTC or stablecoins, without moving the markets? And why is that necessary?
We fully understand the impact that this swap may bring to the market if done on DEXes such as Uniswap or Sushiswap. In fact, our intention is to identify what we call DEXTF Supporters (a.k.a DS) to swap atomically over the counter (OTC).
DEXTF Supporters that are happy to swap large amounts of a major token in exchange for $DEXTF and to subsequently hold them for a relatively long period of time. They’ll be incentivised to do so since each quarter translates into a 10% discount over the market price.
This would be an incredible step forward for DEXTF, because that’ll mean that the protocol will have firepower to:
attract more Romans (marketing)
build cities faster (protocol improvements)
distribute increased loyalty prizes (staking rewards)
conquer and burn (buybacks & burns)
While the achievement of the first two objectives will magnify the impact of the latter two, we want to focus our discussion on what this will mean to token holders in this letter.
The treasury will engage in activities that will generate a return.
Proceeds that will be used in one of two ways:
Any Roman that staked their $DEXTF will receive their share of the proceeds. The amount will depend on the duration of the lock-up. DEXTF Supporters are also considered staked (as they have a lock-up schedule too)
Another portion of the treasury returns will be used to buyback $DEXTF tokens at market rate (providing a consistent buying pressure) that will then be burnt forever (removing $DEXTF from circulating supply and therefore total supply). Introducing supply deflation while increasing demand for $DEXTF as staking becomes desirable.
If you received this letter and understood its contents, you know what to do, it is now the time to act to consolidate and expand the Empire’s influence.
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