$MODA Token BuyBack Proposal

Abstract: Due to slow market conditions and speed of development, the MODA token price has fallen well below expected levels, below the price of any private token pre-sales. To demonstrate the commitment to the MODA community, and the belief in the technology that is coming to market, the core team propose a Token Buyback Program of the $MODA token.

Improvement: As outlined at https://docs.modadao.io, revenue from the MODA network will be pushed into a Sustainability Loop, designed to feed the rewards pool and create further funding for innovation and grant opportunities. Because the core team believes the MODA token is currently undervalued, the buy-back plan is expected to have a beneficial impact on treasury value and the sustainability loop (a community-governed vault where funds can be reinvested, giving $MODA token holders more control over the project's priorities)

Impact: This design allows the sustainability loop to circulate $MODA without issuing any additional $MODA than the predetermined inflation curve. Accumulated $MODA can be used to benefit the MODA ecosystem, both now using treasury funds and in the very near future using network revenue from the initial sale and secondary sale of NFTs using the MODA Music3 framework. This program increases confidence in the project and commitment to the governance model.

Solution: Token buyback program. If the proposal is successful, the core MODA operational team will execute buy orders on the open market using CowSwap to avoid any MEV front-running and/or QuickSwap if any arbitrage opportunities arise between exchanges.

Up to $50,000 USDC of MODA treasury will be used to buy back $MODA tokens and stored in a public wallet. Under this proposal, the team will also explore algorithmic buy-backs on centralized exchanges.

The planned governance roadmap will define the distribution and usage of the tokens at a future stage. Proposal examples could include but are not limited to, additional staking rewards, bounty programs, partnership opportunities, liquidity mining opportunities or token burns.