Sell MAYCs and Use Funds to Buyback $FLOOR

Governance
1

Summary
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.

Motivation

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.

Proposal

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

Polling Period
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.

Poll

  • For - Sell MAYCs and Buyback $FLOOR at a Discount
  • Against - Don’t buyback $FLOOR with MAYC Proceeds

0 voters

2

Hi Lux,

I’m in strong support of the proposal.

However, I think we should take it a step further and rather than do a buyback, we should use the funds from selling the MAYC to seed RAMOS with. I know the team has had some discussion around using RAMOS as pioneered by the TEMPLE team as a means of DAO’s to use random buybacks to get back to backing.

It appears the TEMPLE team would be willing to help with implementation with RAMOS for FLOOR, and this would be a great opportunity to do so, and test it with funding from the sold MAYC’s.

1 Like
3

If the Temple team sets up the RAMOS implementation for us, I’m very down for us to use these funds to kickstart that.

Very much so support buybacks to keep Floor MC >= TV.

1 Like
4

I am also onboard with the implementation of RAMOS.

5

Wow… very impressed here with the proposal and with the RAMOS implementation idea… all for

6

I am all for this happening
I’ve been holding FLOOR tokens for a while now and kind of feel trapped because I know they are worth more than what they are trading for
I think this proposal helps push the price in the right direction towards the correct backing with what they deserve

7

Good points here, and I’m actually in support of implementing something like RAMOS if the TEMPLE team can support the implementation. Seems like a win win.

The RAMOS option will be added to the snapshot so we can vote on it.

8

If RAMOS is going to be an option, it needs to have its own Forum post and discussion.

I initially voted this as a yes to sell the MAYC and buy back Floor, but I disagree with the additional comments that have all come from users that have just signed up to the forum to make their first post.

A move like this, especially the wording of the subsequent Snapshot vote to continue to fund RAMOS on a weekly basis to maintain a 3% variation, requires further discussion within the community and a clear thread and vote on the forum before moving to Snapshot.

I’ve changed my vote to “No” on this now and look forward to the discussion on a new post.

9

Per conversations with members of the DAO, this post will be amended in a new forum post to include the commenters’ feedback regarding the implementation of RAMOS before moving towards a community snapshot vote.