RGP-5: Use of ETH & RBN from Divergence Ventures

Proposals
44

Option 4:

Put ETH into ribbon vaults → grow TVL + show everyone that Ribbon itself holds its treasury in its own products → use profits from vaults to buyback RBN each month / quarter → use RBN tokens which were bought back as an incentive for other activities.

Pros:

  • pumps TVL
  • use ETH productively
  • shows everyone that Ribbon treasury uses its own products
  • constant buyback each month/quarter
  • RBN which was boughtback will have further life in future incentive programs

Cons:

  • up for discussion, but as of now, I don’t see any.
45

lol, the community treasury already has 49% of RBN supply allocated (billions USD) and people want to add more money to it “because it may be useful in future” xD

46

The treasury has its own Token.
That’s not a treasury, thats future shares to be issued.
At present none have been issued so none can be used.

Paying folks in RBN means they have to dump to utilize, so better to have funds in non RBN to utilize for paying bills and additional DAO revenue via farming.

THe DAO cannot access most of the RBN (Billions USD) to farm, or pay folks for contributions atm without discussions around issuance. ETH allows us to just discuss if its worthy of pay, not how it impacts supply, which is very useful for a DAO imo

1 Like
47

Buying back makes sense as it reverses the harm done by Divergence Ventures from wrongful dumping. Not doing anything sends the signal that we see RBN as a token that has lower value than ETH. Doesn’t bode well for liquidity of the token in the future if the signal is that we don’t see LPs as a crucial part of the RBN ecosystem.

48

So tldr: ETH is more valuable than RBN is the signal we’re sending here

2 Likes
49

Message sending is that we are responsible with assets and recognize a one time buy of RBN w/ ETH wont have significant impact, after which we will not have firepower to back the price as a DAO.

We can better use those funds as ETH for the time being by providing liquidity and supporting the price of RBN from going down on a longer time period with effectively a scaled ETH buy wall an an LP.

This will result in more support for the price, smoother pricing across ticks, and fee revenue for the DAO from trading fees.

Right now the market is saying we love the protocol owned liquidity. Ribbon seem to be giving the market what it values.

50

I voted to do nothing.
I think the situation is very good now.
Rather, I want you to use it as a fund for insurance when things get worse.

51

Definitely…there would be no Ribbon without ETH… Not saying RBN is worthless in any way but it’s definitely not more valuable than ETH…

You can’t even use The protocol without having some ETH for gas… so yes it’s obviously more valuable than, the organization holding its own coin for the sake of price action.

52

thanks for the confirmation, we were orignally thinking of whether we’d want to increase our allocation towards rbn, but seeing how the community values eth more than rbn, we’d be better off supporting a different project.

anyway, it’s not about holding coin for price action, but rather, to reverse the malicious action that was done to LPs who are stakeholders of the rbn community.

1 Like