FIP-74: Buyback Adjustments

Summary

This proposal seeks to get consensus on how (if at all) to adjust the Tribe Buybacks.

Forum Post: https://tribe.fei.money/t/fip-74-buyback-adjustments/3909

Motivation

Per FIP-73 we are now seeking to decrease circulating FEI in support of the peg as part of our Contractionary Monetary Policy.

One way to do this is to stop or decrease Tribe buyback amounts.

Currently we are buying-back with 20% of APR (calculated weekly) for Tribe. At the current protocol equity of ~300M, this is $1.15m of FEI being put into circulation per week.

((300m * 0.2) / 52) = $1.15m

As protocol equity lowers, so too do the buybacks, so there does exist some amount of scaling within the system as protocol health increases or decreases.

Voting

Voting is approval-style. You can select multiple options. The option with the highest result will be implemented.

• Keep buybacks at 20% APR of protocol equity
• Reduce buybacks to 10% APR of protocol equity
• Reduce buybacks to 5% APR of protocol equity
• Pause buybacks indefinitely