It’s really simple; the current model incentivizes LPs to exit if there is a price pump or to wait until herd distributes income and dump afterwards. V2 coming up and in theory our TVL and earnings go up. We also have the EPS distribution and some other income such as fees and 15% profit strategies.
IMO the herd contract address will start accumulating cash (DAI/USDT/ ) or my preferred (Accumulate/Hold ETH) in the herd’s address which is not claimable as part of xSDT rewards if they unstake. We can decide the amount of funding kept in ETH.
My proposal calls for holding 75% in ETH which is non claimable ( VIP Seed Fund)
25% would be in Stable coin ( USDT/DAI/USDC) This will be used to market buy SDT at strategic dates only and not as the money comes into the herd. That way we can hold a cash vault and market buy SDT cheap if the price keeps going down.
Market buy SDT as per the current system is not helping against inflation and encourages farmer dumpers.
My motivation is to create a VIP xSDT group which has at least 1000xSDT ( or an amount TBD) which would be necessary to be part of the group . IMO
Our non-claimable ETH will be used to seed fund new projects for a % of the newly created project ( Ideally time-vested released directly onto the herd ) and distribuited equally among all VIP Participants of the herd irregardless of their token amount. A 25% will be kept by the non VIP herd address which will be staked or reinvested as LP or income generating strategies to support the new project generating wealth to all xSDT holders (non VIP).
This is to prevent whales or farmer dumpers to stake and then dump the airdropped tokens or the projects we invested as the requirement is a min of xSDT but having more does not grant more privileges’. If the market price goes up it would be more difficult to get into the VIP Club creating a sense of uniqueness
My reasoning is this would give us an added value as if any of the project we actually fund makes a good product we will offset the market price of SDT by the income generated by the new projects.
LPs Farmer/Dumpers will continue their strategy and jump to another farming place as their income is lowered and IMO even though building will increase TVL it’s currently hurting long term DAO believers.
Create new strategies for SDT investors to build the community. Attract new projects as we would become seed investors. Create a marketing strategy that sells the herd as an investment company that compounds earnings
Just a single project working would most likely offset any price action SDT might have. It benefits the new projects as the Herd is an established community that will support the new projects.
It incentivizes Long term xSDT and high $$$ volume holders as the group will be limited to only wallets holding a certain threshold but also allocates 25% towards any investor increasing the herds overall wallet in terms of value.
It also motivates community to be involved as voting will be very important deciding seeding allocations vrs rewards. IMO we should ask 5% min of all tokens of each project we invest vested but airdropped to each xSDT VIP holders’ directly onto their wallet creating an additional motivation to hold xSDT regardless of the price of the token
If we start hitting home runs our token will become very valuable as there will be additional airdropped tokens dirtribuited among xSDT holders which they lose if they sell.
New xSDT VIP holders would NOT receive allocation of previous projects Airdrops and would only benefit from the 25% allocated towards the herd contract address therefore preventing speculators of joining the herd VIP if our seeding fund hits a home run. They would be part of any new seeding project. This rewards oldshcool OGs VIPs
Hurts LPs and short term speculators