Thread by @jdorman81

Arca is vehemently against the value-destroying Phantom Trope proposal for $SUSHI.

Arca will backstop a new proposal with a first tranche bid price 31% above current TWAP price.

We have posted our proposal in the Sushi forum, and a summary is below 👇

forum.sushi.com/t/sushi-phanto…

1) Arca is one of the largest xSUSHI holders w/ 7.51% of the circulating supply. We bought all tokens in the secondary market, without lockups or discounts. We are customers, we stake, & and we have been very outspoken publicly, supporting the ecosystem.

https://twitter.com/jdorman81/status/1393243213905887232?s=20

2) Sushiswap does not need money, as indicated by @0xMaki himself. We agree that there is merit to diversifying the Treasury, but not at current depressed prices, and there is no justification for the size of a $60mm raise.

forum.sushi.com/t/sushi-phanto…

3) The proposed discount and short lock-up are not indicative of a vibrant growth project like SUSHI. $SUSHI is currently trading at a massive discount to its fair value, and now is absolutely not the time to be selling.

4) We believe our expertise in capital markets and deal structuring can bring more economic and strategic benefit to $SUSHI and its existing investors/community than the current proposal.

5) Some of the VCs touting their “strategic benefits” are selling $SUSHI into a declining low-volume market to buy this new deal at cheaper levels. In other words, this looks more like an arbitrage trade than a strategic, long-term investment.

https://twitter.com/luciano_vpepo/status/1415709111426199556?s=12

6) Arca’s New Proposal: If the $SUSHI community is intent on selling from its treasury in this environment, then we will happily be buyers at prices that are advantageous to us, but much more fair to the community.

7) Since we strongly believe that $SUSHI is already trading at a significant discount to fair value, we won’t require further discounts. In fact, we will pay ABOVE current trading levels.

8) The average Price-to-Sales ratio of the entire DEX market is 12.7x. If $SUSHI traded at these levels, SUSHI would trade at $39.85. We see no reason SUSHI should be trading at a discount to its competitors.

9) We propose $SUSHI sell tokens at different price intervals, based on premiums to the lowest closing price in 2Q ($6.40). We believe SUSHI should offer tokens transparently using the new limit order feature on Sushiswap. All community members should be able to participate.

10) Why is this proposal better?

There is clearly strong demand for the $SUSHI token given the vibrant community, project fundamentals, and large number of “strategic” investors who have expressed interest in a $60mm private round.

11) We believe it is more valuable to have a diversified community of many smaller investors / users than it is to have a concentrated group of large passive investors.

This is the whole point of governance tokens -- to give a voice, and equal opportunity, to all members.

12) Conclusion: If our proposal is accepted, Arca will backstop the deal with a minimum purchase of $10mm at the first offering price $7.04. With this higher bid from Arca, $SUSHI would be negligent offering tokens below this price.

13) Our proposal saves $SUSHI $22.6mm dollars and releases 4mm less tokens saving SUSHI holders from additional dilution.

Proposal here: forum.sushi.com/t/sushi-phanto…

h/t @Crypto_Alex17