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There is an apparent weakness in the 'OHM backed' narrative supporting price and I would like to start a formal discussion around reinforcing this by increasing the floor buyback rate from 1 DAI.
While RFV per OHM steadily increases, sentiment for a new buyer or shook 3,3 holder is the doubt that: is it really backed, if it can go down to $1?
The parameter that reinforces the ‘OHM is backed narrative’ is the floor buyback rate, which is currently set at 1 DAI per OHM. While the RFV “backing” per OHM is much higher, it is not enough to have this implicit backing of RFV per OHM. What is required is an explicit backing reinforced through the buyback policy.
It is my conviction that Olympus should consider increasing the buyback level of the protocol by some amount to strengthen the signal that ‘OHM is backed’.
Code is law and the only RFV per OHM for the 3,3 holder is the protocol buyback price. It is not clear at which price level the OHM is backed narrative will support price, but we are yet to meet that floor from my perspective.
I would like to formalize a discussion around increasing the floor buyback and get thoughts from the community and policy team as to this course of action and at what level this could be set if a viable alternative. Has this been considered?