Buy & Pay vs. Buy & Burn Proposal For AQUA

We've been working with legal council with experience in both traditional securities & blockchain.

To this point, the plan was to take value generated by the protocol, to buy back AQUA & pay AQUA to AQUA holders.

This is still an option, but our legal counsel has advised us that there are various jurisdictions in which this may be problematic as regulation continues to evolve. If we do nothing, this means that we most likely would have to restrict access to the website to key countries that make up a significant part of Decentralized Finance.

We want Planet Finance to remain accessible to everyone in the world & continue to be a successful project for the long term. As a community our aim should be to design & shape a system to maximize the value created & driven to AQUA holders.

To date, this will be the most important proposal that AQUA holders will have to vote on.

Overall, we're proposing 2 options.

Option 1: The first is the original model with no changes, where value generated by the protocol is used to buy AQUA & distribute it to AQUA stakers.

Option 2: The new proposal is to use the available value generated by the protocol to regularly buy & burn AQUA from the market, increasing its scarcity.

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Option 1: Buy & Payout AQUA

Benefits:

• Receive additional AQUA for staking AQUA after day 200
• No change from the current proposed model

Negatives:

• Potentially needing to restrict access to Planet Finance for some countries
• The AQUA supply would burn at a significantly slower rate
• Potentially less TVL
• A smaller user base
• You would not receive GAMMA for staking AQUA
• Less value created by the protocol will pass through AQUA

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Option 2: Buy & Burn AQUA

Benefits:

• More value created by the protocol will pass through AQUA
• The AQUA supply will burn at a faster rate making AQUA more scarce
• You'll receive more GAMMA per AQUA for staking & providing liquidity for AQUA
• Holders will grow their share of the AQUA supply at a faster rate as AQUA is burned
• Value generated by the protocol will remain in the ecosystem
• Planet Finance will remain open to everyone
• Avoid negative perception from exchanges wanting to list AQUA

Negatives:

• You won't receive AQUA for holding AQUA other than trade fees received for providing liquidity

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With the AQUA our team has earned & purchased on the market, we are in alignment & will be using it to vote for the new proposal: Option 2.

Please feel free to ask any questions in our telegram if anything in the proposal isn't clear.

https://t.me/planet_finance