A request to all ohmies who have noted concerns / against the proposal. Could you please confirm if you factored the below into your reasoning? Thank you!
((incase you prefer shitposts and memes, here is thread version))
I just wanted to take a moment to check in that everyone's on the same page with where funding is coming from.
When funding new programs the DAO has a few options:
Use risk free value
- Pro: available and sizeable
Con: decreases value for buyer of last resort
Use bond revenue
At time of writing the 7-day moving average of revenue was $8.9M. This proposal would use 0.33 days of revenue.
Pro: program would be funded not in OHM which would mean don’t factor in sell pressure.
Con: depending on uptake might increase the portion of DAO funds which are sat idle and underutilized.
Use DAO reserved OHM
When someone buys a bond protocol mints and distributes to three parties bonders, stakers and towards DAO reserved OHM. At time of writing there are currently 955k *unstaked* OHM in this fund so this proposal would use 0.06% (6bps) per day (only 2bps non-recoverable)
Pro: DAO reserved OHM are currently getting diluted at about 1.2%. Assuming steady market valuation of OHM this means program would be paid for by 3.3% of a day of lost purchasing power of OHM sat idle.
Con: Distributions in OHM may cause some downward sell pressure on OHM
With the above in mind, the real question we should be asking ourselves is - is skipping out on value generating activity worth the opportunity cost and the dilution cost of inaction. To be clear all value in OHM is generated by value creating activities. At the moment non-utelization of DAO owned OHM is costing us (through diluted purchasing power) > $10M per day.
Ignoring the conflict around the "values" of the suggested projects what is the value this proposal pushes forward
1. utelizing DAO own funds instead of loss of value through dilution
2. marketing + publicity / ecosystem cred
3. setup for future partnerships
The flywheel this contributes towards is
Bringing more attention to Olympus brings more attention to Olympus Pro and the incubator program, which brings more devs from the ecosystem towards the DAO, which brings more dealflow for incubator and OP which brings in more value to Olympus, which brings more juicey payouts to ohmies.
Doing nothing costs $10M is lost opportunity per day. Is that opportunity cost higher than the risks which you are trying to stop from happening?