Am proposing to remove the dNDX fee distribution mechnanism in exchange for buybacks for NDX from the fees from the indexes.
The dNDX mechanism has failed to meet it’s key value proposition, in rewarding those who believe in the protocol most with warped incentive structures, anti-free market approach and arbitrary rules. The dNDX token mechanism has simply prevented those who do NOT believe in the protocol to be trapped in it, creating an environment where the tokens become a spike sell risk the moment they unlock. The idea to lock them for x time for y rewards prevents free market dynamics, reduces liquidity in the market and prevents user autonomy their own money.
Defi continually tries to reinvent the wheel because projects want to feel groundbreaking, but often it’s just misguided and ineffective, we should improve on tradfi, not try reinvent it, because tradfi has evolved to become as efficient as it has, and we should take the core tools they have to put to use in defi.
- Unlock all dNDX and remove the dNDX system support going forward
- Route all index fee revenue to a multisig timelock which will be used for gradual buybacks on NDX every x interval. This is done vs a contract with permissionless use as people can manipulate the dexes to profit from buybacks.
a. This multisig will be the executive team + team members should the new model for leadership be acceptd
We want a way to rewards holders for NDX for participating in the vote process and guide the protocol with stake. BUT we can not arbitrarily lock NDX for no real reason other than people dont like others being able to sell, this is a toxis mindset and should be removed from the space. By having a battle tested mechanism in tradfi, we enable liquid markets, user autonomy and still reward holders.
Snapshot and DAO proposal to come.
Yes we did look at dNDX but it was framed during a time when we had still been in the post hack mindset and people were fearful there’d be more selling, vs looking at the benefits buybacks could have, there was also no replacement mechanism proposed.