PROPOSAL FOR THE USEAGE OF IMPOSTOR TRADING FEES

For Proposal: (The 5% Creator Trading Fees are used to Continually improve $Blood LP)

Against Proposal: (Don’t use the 5% creator trading fees to improve $Blood LP)

                                                      Abstract
 Through utilizing the trading fees generated from Impostor’s trading volume to continually increase the $Blood LP (Liquidity Pool) Superfarm can position itself to launch the Impostors play and earn game with lasting rewards. As the premier product of Superfarm designed to onboard new users it is essential the Impostors game is given its chance to shine. The current proposed solution would give the 5% creator fee of the Impostors NFT sales to the Superfarm Dao and distribute it to the $Super token holders. This proposal intends to show there is a better prospect for those fees. The motivation, recommendation, benefits, and disadvantages are provided in this proposal.

                                                     Motivation
 Determining the best course of action for the long-term success of Superfarm and Impostors ecosystems while avoiding a common costly mistake. Companies launching subsidiaries often want to see an immediate return on their investment. However, it is often far more lucrative to give the new entity a chance to establish itself and grow before harvesting those rewards. The intent of this proposal to persuade the Superfarm Dao to adopt a low time preference and give the Impostor’s ecosystem a chance to blossom before harvesting the fruits of their labors. 

                                                      Recommendation
 With the successful launch of the Impostors NFT collection there has been discussion of distributing the trading fees (5% of the volume) to $Super holders. At the time of the writing the current total volume is ~6k $ETH which would be ~300 $ETH which is roughly equivalent to $1,000,000 USD. While this is an incredible feat for having only been launched a few days ago there are better ways to utilize that income at least initially. 

 The recommendation here is that the Superfarm DAO utilizes the fees generated from the Impostors trading fees to increase the LP (Liquidity Pool) of the $Blood token. Using these fees to establish a healthy LP and continually support the price action of $Blood would help ensure there is adequate time for the game to attract more users before the token gets significantly diluted. 

 With the current fees generated that would equate to a $500,000 buyback with the other $500,000 being added to LP, for a total of $1m in extra LP. This only represents the first few days of trading, and it should be noted that the fees will vary significantly over time.

                                                Advantages
 There are several advantages to adopting this proposal for fee utilization. Firstly, the Impostors game is meant to be the flagship game from Superfarm to onboard new users (possibly millions)? If we simply drain all the funds generated from Impostors then we are signaling to the market that Superfarm DAO is just here for quick money grab. The long-term play is to keep the money in the Impostors ecosystem and allow it to prosper. 

 Another advantage to using this type of continual buyback and providing liquidity is that it helps to support a higher $Blood token price. The $Blood token price is incredibly important as investors are notorious for seeking passive income. If the price of $Blood token increases, then the APY for staking an Impostor NFT increases thus the demand for the NFT increases along with the price of the NFTs. With higher NFT prices the amount of fees generated per NFT sale also increases, thus allowing for more $Blood token buybacks. This creates self-perpetuating loop of sustained $Blood prices and high Impostor NFT price/demand. 

 Finally a higher $Blood token price will also increase the amount of money that people can play and earn in the Impostors game. This will drive more gamers to play the game and ultimately bring more people into the Superfarm ecosystem thus increasing the value of the entire network (Metcalfe’s law).

                                                Disadvantages
 The primary disadvantage here is that the Superfarm DAO will not see an initial return on the Impostor NFT sales. However, it should be mentioned that there are 1,000,000,000 $Super tokens meaning the initial $1,000,000 would only equate to 1/10th of a penny per $Super token if evenly distributed among all holders (E.g. 100,000 $Super tokens would receive $100 assuming no gas costs). 

 Another disadvantage is that the liquidity would be locked and eventually likely be diluted from new issuance of $Blood tokens. However, the ability to sustain the ecosystem depends on the capability of the Superfarm team to help maintain a healthy balance of supply and demand. 

 A third disadvantage to this type of system is avoiding the front run bots. This is a problem on a few levels the buy order itself being front run not the actual purchase as well as individuals that may choose to dump the $Blood token after seeing the buys from the Impostors wallet. These can of course be mitigated in various ways, such as a randomized repurchase time and a minimal slippage setting.

                                                   Conclusion
 Superfarm is an innovative company that strives to design products for passionate gamers and crypto enthusiasts. Superfarm has a continually growing ecosystem of products including: an NFT launchpad, an IDO launchpad, DeFi farming with integrated NFT farming, an upcoming play and earn game (Impostors), an NFT marketplace in development along with a few revolutionary tool sets. With the variety of products already available and in the pipeline for development it is essential that the first game produced by Superfarm is a success and the Superfarm DAO should do everything in its power to make that a reality.

P.S. Thank you for your time and consideration all feed back is welcome and I’m open to changing my mind.