Hello MahaDao community,
I have a proposal I feel will greatly increase both adoption and awareness for Maha and Arth. I will outline this plan of action in this proposal.
As many of you have witnessed the addition of MahaSwap has resulted in the following:
-The ability to limit the amount of ARTH being sold through fees on MahaSwap
-The creation of an ARTH side market that does not involve fees for selling (Uniswap and Bitmax)
The price of ARTH on MahaSwap and other side markets will not equalize until we are in an expansionary phase, which will drop the fees on MahaSwap for selling ARTH and allow arbitrage to bring the price on side markets up to the price of MahaSwap. Thus far, this has not occurred due to our community being relatively small and not adding a significant amount of new investors. New investors are vital to the process of price equalizing between MahaSwap and side markets because without new investment and growth of the community expansion will be quite difficult without AIP 10 active.
I realize that we can grow the MahaDao ecosystem through partnerships and other efforts to raise awareness, however what is it that really grows a community? Growth.
When other investors see a new concept like an algo value coin that rewards its community with expansionary rewards and staking during non-expansionary periods, this generates a lot of buzz and interest. It is my firm belief that partnerships and announcements that are great for our current member base will not be enough to take MahaDao to where we all want it to go.
We need GROWTH and SIZE to really make a splash and maximize all the great innovation and progress we are making.
The Method: I propose we leave the powerful tool that is AIP 10 active at $1.10 for the next 30 days and then gradually scale down to $1.05.
AIP 10 has allowed us to repay ARTH Bond holders in a few epochs. Currently AIP 10 will reduce our rewards/fees peg from $1.10 to $1.05 once all ARTH Bonds are redeemed.
Implementing AIP 12 will accomplish a few things:
1.) Expansion by default: The system will default to a state of expansion which will increase demand for ARTH and equalize the price difference between the side markets and MahaSwap. This gives us more credibility and liquidity.
2.) Increase in Market Cap for our product: Growing the ARTH market cap will attract more adoption. Size makes a big difference in how seriously other projects and potential investors perceive of us. With ARTH being so small, it’s easy to pass it up as just another project in the background.
3.) Drive the demand of Maha: Maha use case is directly correlated with ARTH use and adoption. ARTH growing in size will dramatically increase the value of holding Maha, which has a limited supply and is also burnt by the oscillation of contraction and expansion phases.
4.) Eyes On Us: Nothing drives adoption more than growth. Success makes more success. With ARTH expanding and MAHA’s Market Cap growing many will see the true beauty of our community driven value coin. WE MAKE OUR PARTICIPANTS WEALTH DURING EXPANSION AND CONTRACTION AND WE ARE A VALUE COIN BEATING INFLATION… What else can someone ask for? The only thing that can kill a good project like MahaDao is not enough people knowing we exist in the first place. It’s time to get eyes on us in a big way.
Counterargument to AIP 12:
-Won’t this create artificial demand?-
Response: MahaSwap is an artificial marketplace because of the incentives and fees system used to manipulate the buying and selling of ARTH. I don’t see how this is different. We are an algorithmic value coin with a lot of rewards for participation. Let’s embrace this and use all the tools in our toolbox to gain adoption. We will never be able to compete with Tether or Dai, but that isn’t our objective!
We want an ecosystem where the participants choose ARTH and MAHA over Tether and Dai because we NOT ONLY offer stability but also a LUCRATIVE REWARD system with our staking and expansion incentives. This is unique to us. No one cares for another stable coin that is already in existence and working. Let’s show the entire cryptospace the POWER of a Value Coin that generates an attractive ROI in rain or shine, expansion or contraction.
THAT IS THE REAL USE CASE that is our unique value proposition and what we should be focused on.
I hope you found some insight on my proposal.
I really care about this project and its success.
Long live Maha Dao!!!