Buy and burn --> Buy and hold

Hey everyone,

Huge fan of Serum and Solana since early days. An idea hit me recently, please hear me out.

Serum volume has picked up nicely in the last few months. (Serum Analytics — Real-time markets and trades data) I’d like to propose a new use of Serum’s trading income - basically evolving from the current buy and burn mechanism, into "buy and hold”.

Under the new “buy and hold” mechanism, the funds will be held as USDC in the DAO. This could serve dual purposes imo:

  1. providing the flexibility to decide where to use the funds to suit the best interest of Serum’s ongoing ecosystem growth
  2. representing another meaningful step toward empowering the Serum community in discussing and driving ecosystem growth initiatives

Keen to hear any thoughts & feedback from the community!

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This is an interesting suggestion. I like that it will allow some flexibility based on where the market cycle is at. For example if there is a macro downtrend in the market, use the treasury at that point to buy and burn. During an uptrend maybe incentive GUI hosting or some other positive action.

Hey there!

Brain dump time:

For:

The project should do everything it can to succeed, choosing to move from something destructive like a burn, to holding onto resources to allocate to projects feels constructive.

The Serum FDV and treausry is so large, so massive, that choosing to hold onto this burn instread of just using some treasury looks greedy, unecessary and just adds fuel to the FDV meme. It doesnt move the needle, this works both ways. see below

Against:

The community of holders has anchored to receiving staking rewards, to having them taken away, to now having the burn taken away. Hard to swallow pills.

The Serum FDV and treasury is so large, so massive, that choosing to hold onto this burn instread of just using some treasury looks greedy, unecessary and just adds fuel to the FDV meme. It doesnt move the needle, this works both ways.

Wider point

Will the community look to suggest revising the tokenomics of Serum? Mango did a burn and it did nothing. IMO all the community wants to see is successfull execution, growth and token price go up, before FDV is questioned.

Summary

This change is so small, I dont really care either way, as its just not touching the sides of the overhanging monster that is the 10bn tokens that will exist. so lets make sure we do some good with whatever is decided.

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Hello all, Crypto_notte here. I am very active in the Solana DeFi ecosystem and have holdings of SRM so thanks for having this conversation on the forum and allowing myself to hop in the discussion. We are not here to indulge in fantasy but only in sound economic reality.

I am against the proposal of switching from “buy and burn” to “buy and hold” as it is damaging for SRM and its community, merely there’s not enough upside in accumulating SRM for Serum DAO to spend them at a later moment.

I find this a very bad idea for the following two reasons:

  • A significant amount of SRM (locked and unlocked) is already available for the ecosystem, these funds flow via the “Ecosystem Incentive Fund” and “Partner and Collaborator Fund”.

Most on the “Ecosystem Incentive Fund” is already unlocked today and it’s so massive that SRM obtainable with the “buy and hold” would never be a significant portion.

Let’s try to understand how the community feel about this:

  • on Discord the most active thread by number of views and reply is the one complaining about high FDV. I imagine community (myself included) will also be against this proposal as it is just an internal shift of tokens with no real impact on supply which is the exact point of a “buy and burn”.

Buy and hold? 10,000,000,000 amount of Serum!
SERUM’s worth would be plunge…

I bought SERUM at about 8$ and did staking.
I think i had wrong decision…

Maybe “buy and hold” isn’t the best phrase.

I meant hold it as USDC

  1. when users trade on serum, they pay in the quote assets
  2. then those get put into a wallet
  3. then they all get swapped into USDC
  4. USDC stored in DAO

Something like this

It is the biggest drop in six months.

Hi, I’m new in the forum… is it possible to stake SRM (alone)? If it is, how?

Following up here. A new DAO proposal for this has been created:

https://realms.today/dao/SERUM/proposal/Fj6jdDkdUxhhxHapqiuXhwQp8rd7SJHWcUYdzuy85CNn

Glow torch why didn’t you vote on the proposal you made? There were only two voters on this proposal, me and cuie. I would call that vote an informal tie

this has passed now it seems. I hope it brings positive change, because on the face of it it just looks like a weird dash to hang onto tokens when 10bn exist.