XIP #26: Strategic XBG Buyback

Summary

This XBorg Improvement Proposal suggests executing a $1,000,000 buyback of XBG to create strong token momentum as positive sentiment returns to the market. To source the capital, we suggest hosting an Over-The-Counter (OTC) sale of XBG at a 30% discount to the current market price with all raised funds used to buy back XBG on the spot market. The sale will occur on the SwissBorg app, with the most committed XBorg and SwissBorg members gaining access.

The tokens purchased OTC will be subject to a 6-month vesting period to align investor incentives with long-term protocol growth and eliminate short to medium-term sell pressure. This allows the buybacks to create strong positive momentum as our additional growth initiatives launch.

Context

As positive sentiment returns to the market and XBorg launches its growth initiatives -- including the launch of XBorgAI, XBG on Base and Aerodrome, the XBG Trading Competition and more -- it is most beneficial to have strong initial token momentum that these initiatives can build on top of.

This OTC sale is designed to:

• Distribute XBG to high-conviction holders at attractive terms
• Attract new capital and visibility via SwissBorg’s growing investor base
• Fund XBG buybacks to create strong momentum
• Introduce a vesting-based participation model to mitigate sell pressure

Sale Parameters

• Location: SwissBorg App, Alpha Vaults
• Discount: 30% off the spot market price at time of purchase
• Cap: $1,000,000 total sale allocation
• Vesting: Tokens purchased will be vested linearly for 6 months
• Start Date: Approximately next week Wednesday
• Duration: The sale will run for 7 days or until fully subscribed

Use of Proceeds

All funds raised will be used to purchase XBG from the spot market following the sale. Buybacks will occur via a DCA (Dollar Cost Averaging) strategy across key venues to ensure price stability, minimal slippage and maximum sustained momentum.

Eligibility & Access

Verified SwissBorg users will have access to the deal, subject to app-specific eligibility criteria like Premium tiers. Minimum and maximum allocations may be imposed based on demand to ensure fair distribution. We are utilising the SwissBorg app as the venue for the sale as it is fully licensed and well-equipped to facilitate the sale.

Governance

The XBorg team will oversee the execution of the sale and corresponding buyback program. Final pricing logic, sale limits, and operational controls will be managed in collaboration with SwissBorg. Any adjustments to the terms or follow-on OTC programs will require community approval and alignment with long-term tokenomic design.

Conclusion

This OTC sale offers a strategic opportunity to create strong positive momentum and build a stronger base of long-term aligned token holders. With discounted access, vesting alignment, and a commitment to reinvest proceeds into the market, this initiative is well-positioned to positively affect both price performance and community participation.

If approved, XBorg will work closely with SwissBorg to launch the sale next week.

If rejected, community feedback will be incorporated to design a revised proposal.