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The Proposal
This proposal is for the DAO to use the current BUSD and USDC/T reserves to purchase DEC. This swap will be handled by the DAO management team in a way that minimizes fees and slippage as much as reasonably possible. The max purchase price for DEC is $0.95 per 1k DEC (95% of par value).
Video Explanation
The Benefits
This proposal has 2 main purposes: 1) help DEC reach par faster and 2) increase the value of the DAO holdings by purchasing DEC at its current discount. The DAO currently owns just under $500k worth of stable coins. If all of the funds are able to purchase DEC that will give the DAO 10-13% of the current DEC supply. Because the DAO currently has no method of spending DEC, this supply will be effectively removed from the market and be a major factor in driving DEC back towards par value.
If DEC price jumps above 95% of par value before funds are depleted, this will also act as a barrier to help prevent DEC from dropping below this 95% again in the future, as the DAO will purchase DEC again if it falls below this threshold.
The Reasoning
It has been stated many times that getting DEC to par value and activating the "flywheel" is one of the most important things for the Splinterlands economy. This is a chance for the DAO to contribute towards that goal while also increasing the value of their treasury. Activating the flywheel will create a large use case for SPS (burning SPS to mint more DEC) that can help drive more demand for the Splinterlands governance token.
The Sponsor
This proposal and the video above is sponsored by Ethlas. This proposal was written up prior to and was not influenced by Ethlas or any other sponsors.
