Over the past few days Wonderland has been deeply stress tested and without buybacks many holders are stuck, unable to get the backing they were promised for their holdings
Price action shows that both long term holders and newer entrants are afraid for the future and continue to sell off their wMEMO into the AMM, even though the backing price is significantly higher
From the recent unwind vote we have seen that 40% of holders are not aligned for the long term of the project. Therefore, if the coming days are spent voting on a future for Wonderland, these holders will vote for short term success, and won’t care about nuances of who runs the treasury, how yield is earned, etc. These holders need to be flushed out fairly.
We should clear out those that want their backing, while delivering extra value to those that are aligned for the long term.
I propose that before any long term decisions are made a Rage Quit process happens where:
- all trading is halted
- all liquidity is removed
- calculate the backing per WMEMO (using the math described in this tweet, less BSGG): https://twitter.com/dcfgod/status/1470499199179493378
- create a rage quit pool of MIM so no assets need to be sold off. Rage quitters can claim from this MIM pool.
- If the pool runs out then assets should be sold for more MIM to refill the pool until the rage quit window closes
- The rage quit window should be 48h
- During this window any user can come burn their WMEMO via a UI forever and get the underlying MIM which backs it
- I am happy to work with whoever to get an exact calculation of what the backing is in a transparent manner - it’s just that there are so many wallets that I feel uncomfortable calculating it myself now without help from the team directly. My first guess is it is upwards of $33k / WMEMO
This is beneficial for long term holders because:
- Those that leave will get no BSGG airdrop, increasing the size of the airdrop for everyone who stays
- There is an increase of backing per WMEMO for those that stay as 100% of the BSGG holdings are not counted towards RFV. This is almost $100M of extra value (last I checked) for those that stay.
- Those that want out will have a safe way to leave the community, clearing sellers and only keeping long term aligned holders.
- For a case study take a look at how this went for constitution DAO. Those that stayed made multiples more than those that left for their eth backing value.
For those that fear this is negative as it shrinks the treasury - they are correct that the treasury gets smaller, but the backing for each holder that stays goes up. Having a massive treasury has never been a competitive advantage to the project. Regardless of size every investment and strategy up to this point could’ve happened, and will continue to happen.