RE: Proposal in Progress
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Am I the only one who sees this as a major red flag? Maybe I havent looked into it enough but to me it looks like we/ the DAO is taking full risk, worst case the team will drain the DAO assets and the whole notion of "locked up in the DAO" we have heard for years comes crashing down.
I see no world in which we dont have a major DEC crash and all none splinterlands assets will be drained by the splinterlands team.
Respectfully please explain how you expect the flywheel to run in this model
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The company already has roughly an equivalent amount of sales. We'd more or less be annualizing them and taking on the risk that they are unable to keep up with the past 4 year average sales. In return for that risk we get a 20% return + IP rights.
As far as crashing DEC, it's ultimately about input and output. We've now had 4 events funded by the DAO in DEC that returned more DEC than we put out. That is a net deflationary cycle. Obviously we'd all be way more happy if the team had infinite cash to burn and could just buy up any tokens they need, but that isn't the reality of the situation we find ourselves in.
I'm not going to tell you how you should feel about the situation, but I do think there's a strong upside potential for the DAO, especially considered everything will be settled at USD value (in and out) so if the price of DEC were to decline from what we paid them, they'd need to return more DEC to repay the balance. Of course there's risk in everything though.