[DIP] Derive DAO increase revenue allocation for weekly buybacks

Voting ended 10 months agoDefeated

Simple Summary

This proposal seeks to increase the weekly revenue allocation for $DRV token buybacks from 25% to 80%.

Abstract

The objective of this proposal is to authorize the buyback and accumulation of $DRV tokens from the open market. This initiative aims to establish a fair market price for $DRV tokens and safeguard the Derive protocol against potential hostile takeovers exploiting undervaluation.

Reference: [DIP] DRV Token Launch and Functionality (25% of protocol revenue will be used for token buy-backs for the DAO treasury.)

Motivation

Over recent months, Derive has successfully completed its rebranding from Lyra and launched a robust suite of technologies designed to compete with centralized exchanges (CEXs). While the focus has been on developing innovative products, the value and market capitalization of the $DRV token have been secondary priorities. Due to recent market conditions, the token’s price has experienced a downward trend, which does not accurately reflect the protocol’s technological advancements or ecosystem growth.

Specification

The DAO will allocate 80% of weekly protocol revenue to purchase $DRV tokens from the open market.

Rationale

Increasing the allocation for token buybacks will strengthen the DAO’s token reserves, support a more accurate valuation of the $DRV token, and enhance protection against unsolicited takeovers, thereby ensuring the long-term stability and integrity of the Derive protocol.