Author Topic: Thoughts on new OMO fund  (Read 1389 times)

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Offline bitcrab

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Re: Thoughts on new OMO fund
« Reply #15 on: August 11, 2019, 09:17:54 am »
what's the mission of the New OMO fund?

There are proposals to burn BTS in committee-account, that is one action for the community to push up the price of BTS.

But that proposals is not supported by committee members, in my view to burn BTS make little sense, more than 200K BTS are released every day via worker proposals, comparing to this amount the BTS to burn is too few.

Comparing to just burn the accumulated BTS in committee-account, I believe it's better to put the BTS into the so called New OMO fund.

A debt position will be managed under this fund.

While BTS price is underevaluated, borrow smartcoin and buy more BTS.
While BTS price is overevaluated, sell BTS to close the debt positions.

The fund will show that it's possible to manage a debt position well, especially with continuous income.

Offline Thul3

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Re: Thoughts on new OMO fund
« Reply #16 on: August 11, 2019, 10:27:44 am »
Quote
While BTS price is underevaluated, borrow smartcoin and buy more BTS.
While BTS price is overevaluated, sell BTS to close the debt positions.

Could you define that please what exectly eans undervaluated and overevaluated ?

Offline bitcrab

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Re: Thoughts on new OMO fund
« Reply #17 on: August 13, 2019, 07:40:41 am »
Quote
While BTS price is underevaluated, borrow smartcoin and buy more BTS.
While BTS price is overevaluated, sell BTS to close the debt positions.
Could you define that please what exectly eans undervaluated and overevaluated ?

first suppose that 0.2175CNY is the long term bottom price.

for undervaluated price I'd like to define like this:

0.2175*MCR = 0.348 CNY, or 0.05 USD

which means, if the price is undervaluted, if you borrow with setting your margin call price < GS price, you have no worry for margin calling.

top price in the last 9 months is 0.5377CNY

overvaluated price = 0.5377/1.05 = 0.512CNY, or 0.073USD.

« Last Edit: August 13, 2019, 07:56:00 am by bitcrab »

Offline bench

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Re: Thoughts on new OMO fund
« Reply #18 on: August 14, 2019, 11:30:40 am »
When does OMO fund start?

Offline bitcrab

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Re: Thoughts on new OMO fund
« Reply #19 on: August 15, 2019, 06:50:57 am »
Where does the initial fund come from?

I feel the accumulated BTS and accumulated smartcoin fee in committee-account can be used.

I don't think it's good to get BTS via worker proposal, but I feel we can keep the possibility open, to get BTS via a worker proposal need another independent voting.

how to organize the operation team? will the operators be paid? and how?

A mulitsig account will be built to operate the fund, either 2/3 or 3/5 multisig is OK.

members who want to do this job and are also trusted by the community can join.

the fund will be calculated BTS based net value every quarter, if net value increase >0, then 50% of the net value will be paid to the operation team, otherwise there will be no payment.






Offline bitcrab

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Re: Thoughts on new OMO fund
« Reply #20 on: August 18, 2019, 03:33:58 pm »
I drafted a suggestion on this, hope you can also review it. https://bitsharestalk.org/index.php?topic=29278.0 @Thul3