1/11
I want to discuss some exciting changes in regards to the tokenomics on $MC but as with anything. Good things take time. Some of the changes include token burns, buybacks, and in the future strategic OTC lockups creating a supply sink so tokens don't hit the open market
2/11
Recently the MIP-7 DAO proposal passed that makes changes to realized gains. Some of those changes are as follows:
20% of proceeds are sent back to the USDC treasury
5% will be sent back as $ETH and $WBTC
3/11
60% will be used to create a strong support 25% below price on chain using 1inch exchange with price adjusted every 7 days to help create a strong support.
These can be burned or sold to strategic investors depending on DAO governance
5/11
While we have only been operating for two months, we already have positive cashflow with 1.7m invested that is currently trading and a current value of 25m and realized gains of 1.2m on that.
6/11
The USDC treasury will exceed 150-200m in the coming year while still participating in the investments we want to make.
7/11
The treasury is being filled with $MC, and being sold to strategic institutional parties with multiple year lockups to bring value add as opposed to money only
8/11
The goal will be to OTC many of the locked tokens out at a discount to buyers with a long term time horizon and vision of the future we are creating.
9/11
Reading through the governance changes and the treasury report should give some insight into how well of an oiled machine this really is but also that growing isn’t an overnight process. We are off to a strong start in a weak market but it will take time to reflect that
10/11
Imagine a DAO with multiple strategies, multiple revenue streams, like an investment fund that besides investment gains, will also have products that generate cash. More on this coming soon.
11/11
You can read our latest treasury report here, and in the future we will have a life dashboard tracking real time. meritcircle.substack.com/p/4-treasury-r…
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Here was expecting a fake out to the downside where people get caught offsides selling the lows
Now most people had invalidations at like 51-53k for where they would buy back but really it should've been 58k-60.7k technically
This is important bc people who have been short are selling then taking profits on the way down. So closing shorts isn't necessarily that bears are fucked. Price might be going up bc they are taking profits. But what was left there was really tight and compact lower highs
While I've written a lot about macro bear stuff as of late. One thing I always try to remember is "Being a bear is tough" Downside is limited and upside is. Well. Unlimited. So what is the bullish case?
Global adoption
In the event that happens I believe we will see 2 other countries follow suit from South America on the path of adoption. Yes, they will be small
𝐺𝑟𝑎𝑑𝑢𝑎𝑙𝑙𝑦, 𝑡ℎ𝑒𝑛 𝑠𝑢𝑑𝑑𝑒𝑛𝑙𝑦
Like a set of domino's and when talking years down the road. I think it starts here
Personally don't believe in new ATH's this year. and of course would love to be proven wrong. But I think it's important to recognize this market isn't going anywhere and we've come a long way. There's a lot to look forward to even if the impacts aren't noticed right away.
GM
I think it’s wise on significant bounces to consider removing a good amount of your capital from the market Especially if 1. You’ve made it 2. Can’t afford to lose it
As stated I think this year is a year people lose most if not all for many reasons laid out.
In 2018 I made the mistake many of you have already made or are making. And have mostly been risk off as opposed to on the past months. I personally feel and have laid out the reasons why I believe the markets have a lot more to bleed out as a whole
I’ll be making concentrated bets in a few sectors in the market and taking 80% out as I’m still very close to my latest ath’s. You can always deploy into strength when the market shows you it’s time on a high time frame reversal or months from now after alts gave made many Lh’s
GM!
Now is a good time for a little education imo. How many fiat currencies have survived the test of time? Zero. A lot of similarities today with how the Roman Empire fell. But also imo the same thing that happens in our market. DILUTION 👇
The same way NFT’s fell apart, ICO’, etc in this market often have the same catalyst. Over-saturation of projects eventually exceed demand and supply dominates = people leave and volume drop