MIP-4: LP Ladder (*Treasury/LP Growth Mechanism)

This Mikaboshi Improvement Proposal brings the concept of the utilization of a portion of the current and future collected Ethereum. It is a semi-complicated one that has several benefits, including an increase in liquidity, growth of the DAO funds, utilization of DAO funds, marketing effects, and something more than a burn the community can work towards. This will be explained in more detail shortly.

Currently, the DAO collects some Ethereum whenever there's a tax event. As Mika increases in value there will be fewer tax events but those events will lead to more Ethereum in the DAO's treasury.

Because the DAO will need Ethereum for marketing purposes, payments, bailing out failing banks, and whatever comes up we should maintain holdings. If we as a community push towards burns which can be regularly triggered this will promote scarcity but doesn't necessarily promote an increase of DAO funds or LP which is needed to get listed on more significant tracking services like CoinGecko and CoinMarketCap. This has been a common question for a while and we can get there eventually but this might get us there a little bit quicker.

This proposal can be referred to as the "ladder". Essentially every step we hit on this ladder triggers a manual LP creation utilizing the DAO's eth because the treasury wouldn't have that without the activity of everyone involved in the DAO (holders, traders, etc).

So an example of this will be provided below and then an explanation of what would happen.

50% Of DAO Holdings:

2.5eth - 1.25eth/MIKA 3eth - 1.5eth/MIKA 3.5eth - 1.75eth/MIKA 4eth - 2eth/MIKA 4.5eth - 2.25eth/MIKA 5eth - 2.5eth/MIKA 5.5eth - 2.75eth/MIKA 6eth - 3eth/MIKA

17eth/MIKA in LP added DAO eth holdings increase from 1.25 to 3eth

33% Of DAO Holdings:

2.4eth - .8eth/MIKA 3eth - 1eth/MIKA 3.6eth - 1.2eth/MIKA 4.2eth - 1.4eth/MIKA 4.8eth - 1.6eth/MIKA 5.4eth - 1.8eth/MIKA 6eth - 2eth/MIKA

9.8eth/MIKA in LP added DAO eth holdings increase from 1.6 to 4eth

25% Of DAO Holdings:

2.5eth - .625eth/MIKA 3eth - .75eth/MIKA 3.5eth - .875eth/MIKA 4eth - 1eth/MIKA 4.5eth - 1.125eth/MIKA 5eth - 1.25eth/MIKA 5.5eth - 1.375eth/MIKA 6eth - 1.5eth/MIKA

8.5eth/MIKA in LP added DAO eth holdings increase from 1.875 to 4.5eth

On the left-hand side, we have what would be the total Ethereum the treasury has at that moment, we would take a % of that (in this I have calculated 50%, 33%, and 25%) and use that to purchase Mika, furthering the next LP creation event and then manually create LP and burn it. So in these examples, you can see that the treasury still continues to grow over time, the ladder steps get a little bit harder to get but if it becomes unfeasible we can always vote to go back down some steps or start over, cap it, etc. While the treasury grows that can be utilized for other purposes as needed, this places new buying pressure on Mika as well as creates more untouchable, burnt LP giving us a nicer depth so no one can come in and flatline the price by selling a billion or something.

This also protects the treasury's Mika and saves it for other uses, and events because realistically that will go up in value in response to this in conjunction with the burns. Marketing effects, much like when we hit 42.69% burnt and 44%, etc. We get to start looking forward to the LP events and can openly discuss it as a benefit or hype it. If the first step is at 2.5 Ethereum though we'd be about 1 event away from having 1.25 total value added to the LP and burnt, that means the DAO would be at 1.25 and would need to be at 3 before the next one so it won't be super frequent but provides an added passivity. It could be worthwhile to have the ladder stop at 10 and reset back down, DAO Ethereum count at the reset becomes excluded on future climbs, if DAO has 5 Ethereum at the 10 eth step, the next step would be 2.5 needed amount is (x -5)