CRE8R Use Case
This proposal is a suggested use case for our CRE8R token beyond the buy-back mechanic I have been describing. And that is a stake to earn a portion of the treasury.
The first use case of our token should be to vote. But we already use the F100 NFT to vote. So I propose we use the CRE8R token to vote on a change of our treasury cut from client payment. And perhaps on which option we give out in the Staker (see below)
For those that don’t already know. I will here describe the tokenonic use case for the CRE8R token for internal uses.
When a client pays us, let’s say in USDC. We use the USDC to buy our tokens from the market, where a small portion is used to deepen our liquidity pool, and the rest is used to pay creators via coordinape.
For example: If sausageswap pays us 10000 USDC for a month of coverage. We would take 500 and add it to the treasury as holding (hopefully we find a favorite farm, or yield bearing position to gain yield for later). Then we use 1500 USD to provide liquidity to our pool based on the LP ratio, ie 50/50, 80/20 (i personally prefer the 80/20 until we get this deep enough as it can handle token dumping much better)….the final 8000 is used to buy back our token and give it to the creators as payment. This mechanic will have us always buying more than we are giving out and create a situation where the token value has more upside than down.
So i propose we use
5% to treasury
15% to LP
80% to work done.
A way to incentivise hodl and is we can ask users to stake, either LPs or ssCRE8R tokens for a share of the yield from our treasury. At first we won’t have much here, so we can bootstrap this with $CRE8R from the warchest, but IMO, we should try to get out of that as quickly as possible. So If we were able to yield xUSD this month via farming, then we would give 80% that yield, by first buying-back CRE8R and adding them to the farm. (it’s easier to have a single token reward in a farm, as people won’t always come to claim their tokens, and we can fork MasterChef for this)
This idea came out of my discussions with Fugu about the issue of the initial distribution and the possibility of token dumps early on in the launch.
- To help mitigate the “damage” of a token dump from early airdrop recipients, I suggest we utilize a 80/20 pool, or perhaps even a 95/5. These pools can take the hits much better.
The floor is another idea that I was playing around with in my head. And it works as so.
- any time the token is below 1USD in value, we pay creators as if it were 1 USD in value. This will make our buybacks more powerful as we are buying them at a discount to what we are paying them out as. It will also incentivise the hodling of tokens by people paid as they will be selling as a discount.
For example. If CRE8R is selling at 0.6 and we buy the token up to 0.61. When we distribute the token to creators our treasury will be earning 0.39 on the dollar. We can use the profit to give to the STAKERs above.
ONce the floor of 1USD is passed, then we simply convert our payment mechanic a budget of CRE8R for each project… forexample DirtyEggYolks, pays us 10000, and we are able to buy only 7000 CRE8R token with the 8000USD considering the above BUYBACK mechanic. Then we have a budget of 7000 CRE8R tokens that we divide by the total GIBs given in coordinape to realize the value of 1GIB
The hope of the above is to give the public a usecase for buying and hodling CRE8R, so we can have everyone that is interested in participating a reason to buy and hold CRE8R. At first i was in the camp of keeping the token purely internal. Please give your feedback below.