Allocations, Emissions, Epoch = Reaction to Market Downturn
Please read the below (make note of the disclaimer — none of this should be taken as financial advice & any opinion is the sole viewpoint of the DAO leadership) — it provides important updates for DAO members re:
- Allocations
- Emissions
- Reaction to Market Downturn
Allocations:
DAO treasury and core-team have not pulled funds for substantial FATE for a while. We are taking a defensive measure by doing the following:
- Increasing allocations to xFATE-FATE LP and increasing the amount of treasury deposits to further absorb this epoch’s rewards (as of Friday treasury was absorbing 30% of rewards — — we want this to increase)
- This is also meant to discourage members from selling at these price levels.
- The only DAO purchasing that will occur is to support the price of PAXG when it falls below the average market price — which happens regularly and partly implies there is a lack of demand. If it is possible we try and use that to buy more PAXG — however, as we are starting to have substantial capital requirements — expect PAXG levels to possibly decrease. (given it often trades below market price the demand isn’t sustaining it) — the DAO would rather use PAXG than sell FATE. Details on the capital being used in total will come as the results begin to solidify.
- The DAO is intended to be a long-term membership each of you has contributed and is investing in the DAO’s measures to reach real profitability, as any FinTech would — these are underway and we will provide updates for this when the next steps are solidified — our team is growing and we are hard at work — the innovative products and services we are building are not something that can be accomplished in a few months.
- The below are the current allocations by pool — do not expect other pools to provide suffice for large holdings until the updates being worked on our deployed
Emissions:
- Members need to get used to stable double-digit (sometimes triple-digit) APRs — the ideal is to move away from the liquidity rewards scheme model asap and not have to use FATE — however, this requires securitization of the token and is not likely to occur soon…
- The DAO must preserve the supply of the FATE token. Rewards reduction will reduce supply in the short and long term — but, using simple economic supply/demand theory — may be positive for the price. Please do not view the DApp — despite its current form as basically that — as a yield farm. It was the fastest way to start generating capital and obtaining DAO members.
- Based on the allocation strategy the DAO does not necessarily have to decrease emissions —Treasury should be absorbing 30–50%, but we will likely reduce them as approved by a recent DAO vote by approximately 30–50%. The main reason is to decrease supply and a few other reasons that have been stated in prior updates. Mainly, to set expectations for the future.
Note: All tokens reabsorbed by Treasury will be returned to the rewards controller.
CURRENT EPOCH:
Expect more updates regarding locked rewards release and other matters as outlined here and in prior updates as they transpire.
Timing: Harmony latency has extended the end of the current epoch. As of today we are still +2 weeks away from its end.
- You can use google sheet HERE (and make a copy if you want to keep track on your own) to track the timing. It does not update automatically.
THANK YOU ALL FOR YOUR CONTINUED SUPPORT — WE WILL ENSURE YOU ARE KEPT UPDATED AND ARE AVAILABLE IN THE SOCIAL MEDIA TG/DISCORD IF ANY ISSUES/QUESTIONS SHOULD ARISE.
DISCLAIMER:
None of the information communicated should be taken as financial advice. You must be responsible, do research and make your own decisions regarding participation as a DAO member. The messages and/or written content (including any attachments) contains proprietary information — and are covered by trademark and copyright, with patents pending. NOTHING SAID SHOULD BE TAKEN AS INVESTMENT OR FINANCIAL ADVICE.
