The Galleon DAO core crew wishes to create a flexible Doubloon ($DBL) buy-back and incentivise mechanism using product revenue going forward in 2022. The initiative must be reviewed again prior to rolling over to 2023.
Active doubloon tokenomics discussion and experimentation is a core directive with Galleon so long as it follows basic principles:
- Tokenomics design must benefit current token holders through empowerment in governance and direct & indirect reward initiatives whilst balancing the needs of using $DBL as a method of scaling Galleon DAO in growth and scope.
- All peripheral products should benefit DBL directly or indirectly through novel mechanisms
- Any market incentives program should focus on long term, well-aligned rewards as opposed to encouraging mercenary usage.
The core team want to start engaging in creating positive feedback loops for DBL based on Galleons’ wider success in its products early on where possible with the mindset that we can adapt fast down the line as circumstances change. Buybacks are the first tool in the belt in our journey to propel DBL from being a passive governance token with no utility to one benefitting from the success of the organisation.
We want to propose that the core team are empowered in 2022 to flexibly create DBL buybacks through product revenue when accrued revenue is over $10,000. Buybacks will not be signalled prior, nor will be executed at any interval that could be predicted or front-ran. It is planned that the DBL gained through this mechanism is placed back into the ecosystem for growth through:
- Contributor rewards
- Incentivising revenue-generating activities such as product issuance (e.g. through flash issuance on SetSwap), the rationale is assuming that the minted product will be sticky TVL that generates continuous revenue, carrying on the cycle.
- LP bought DBL, providing liquidity for DBL and generating some revenue from LP fees.
Governance tokens that carry no utility or do not accrue any of the financial benefits from the DAOs success have historically failed to capture value over time with the vast majority of them perpetually devaluing versus ETH.
Galleon wants to take an active stance to put Doubloon at the forefront of the DAO by enabling a toolkit of initiatives that can be enacted by the core team to help steer a healthy future for the token and most importantly, reward those participating in the DAO via governance or contribution and choosing to hold their voting rights long term.
- Accrue fees from products every month
- When revenue accrued reaches $10,000 in product assets and above, the core team is optionally able to create a DBL buy-back if deemed appropriate.
- Buyback is executed through DEX liquidity from the Arbitrum DAO treasury multi-sig address.
- DBL tokens gained should be put back to work through the initiatives laid out in the Abstract
- Buyback is logged on docs.galleon.community for transparency post-execution.