This proposal is for FloorDAO to liquidate our remaining MAYC holdings and use the proceeds to buyback $FLOOR from the open market over a period of one week time to prevent front-running.
The team has entertained multiple discussions around ways of bringing $FLOOR back to backing and the community has been vocal that bringing $FLOOR to backing while accumulating $FLOOR at a discount is accretive to the DAO and in its interests.
Below is a low-barrier way to achieve such a task that requires no dev time while Floor transitions into V2.
First, the current trading price of FLOOR represents a significant discount to its backing value (currently at $4.67), which means that each purchase made by the treasury will result in an instant return of approximately 42% for the capital deployed (at the time of this post).
This presents a clear opportunity for the treasury to create value for its members by increasing the value of their holdings – there are very few opportunities to generate such a substantial risk free return from the market in NFTs.
When FLOOR trades at such a significant discount to backing, capital would be better deployed buying back the FLOOR token rather than purchasing other NFTs, which would be dilutive to FLOOR value unless the NFTs increase in value by more than the 42% discount to backing.
Second, the Treasury should be more aggressive in liquidating the remaining MAYC NFTs as they are flagged and liquidity for them could go to zero at any moment. This would result in a significant financial harm to the treasury.
By using the capital generated from liquidating the remaining MAYC NFTs, the treasury can mitigate the risk associated with the flagged NFTs while creating value for all FLOOR holders.
Upon a successful snapshot vote, FloorDAO will:
- Liquidate MAYC position within a 1 week period after the vote
- Use proceeds from liquidation to buyback $FLOOR on the open market over the course of 1 week, bringing $FLOOR as close to the backing price of $4.67 as possible
In summary, buying back FLOOR tokens from the open market presents an opportunity for the FloorDAO treasury to generate a significant return on capital deployed while also mitigating the risk of the remaining MAYC NFTs
The polling process begins now and will end at 00:00 UTC on 2023-03-15. After this, a Snapshot vote will be put up at 15:00 UTC on 2023-03-16.
- For - Sell MAYCs and Buyback $FLOOR at a Discount
- Against - Don’t buyback $FLOOR with MAYC Proceeds