Proposal to utilise XSI rewards to boost XIO’s liquidity every month. Receive XSI rewards in UNI-V2 tokens instead of XIO
As it stands XSI rewards are paid out to a citizen’s whitelisted address each month based on their XSI leaderboard rank.
At the moment the XIO rewards the citizen receives can be added to XLP, held or sold.
There is no guarantee they are going to add it to XLP and they may sell the entire reward.
What if, instead of paying citizen in XIO, citizens are paid in UNI-V2 tokens from the XIO/ETH pool which the foundation buys each month (using the XIO rewards citizens would have normally received from XSI).
So say if the total breakdown of the reward payout each month for the entire XSI leaderboard equates to $30,000, the foundation sells $15,000 XIO for ETH and combines this ETH with the remain $15,000 XIO to add to the XIO/ ETH liquidity pool.
The foundation receives the UNI V2 tokens and then distributes a specific % of these UNI-V2 tokens to each citizen, based on their XSI rank for that month.
The benefits I see
•It could gradually boost liquidity each month by automatically adding XSI rewards to XLP.
•Increased liquidity reduces slippage which could make XIO even more attractive to larger traders/ investors.
•Potential to reduce sell pressure in the long run as any citizen that wants to sell the UNI V2 tokens, would lose their XLP mulitplier they have spent many months building up (if they have already added to XLP in the past).
•Potentially locks up more tokens, which should have a positive effect on price of XIO.
•Ensuring XSI rewards are added to XLP, creates a passive XSI reward payout for citizens through XLP monthly payout. The more months a citizen participates and ranks on the XSI leaderboard, the larger the compounding effect it has on the passive rewards they receive.
•With the new proposed XIO token studio, any funds in XLP would automatically start liquidity mining the next token the token studio develops.
The negatives I see
•There would be a consistent sell pressure of a fixed amount each month by the foundation, although the boosted liquidity and reduced slippage sensitivity this creates, would make this sell pressure each month have less of an impact on XIO price .
•Citzen’s may not like that if they want to sell their monthly XSI rewards, they lose any existing XLP multiplier they may have.
Summary of above:
What are your thoughts and opinions for if XSI was used to boost XIO’s liquidity each month by a citizen receiving UNI-V2 XIO/ETH pool tokens as an XSI reward instead of XIO tokens?