Proposal: Create an MAHA/ARTH trading pair on Uniswap
Currently there is only one trading pair for MAHA (MAHA/ETH) and two trading pair for ARTH (ARTH/ETH & ARTH/DAI). If we create a MAHA/ARTH trading pair, it will increase the use case for ARTH, which will in turn drive up demand and retention of the value token. A MAHA/ARTH pairing will help increase the liquidity for both MAHA and ARTH, benefitting the MAHA ecosystem. A directly pair swap is desirable because each time you trade between a pair, it incurs a 0.3% trading fee from Uniswap, slippage based on the liquidity of the pool, and costs additional gas. With the current high gas environment, we want to make trading as cheaply as possible. It may take a while before other projects incentivize trading pairs with ARTH because they will want a larger circulating supply of ARTH and price stability around $1, so they will likely opt for a DAI pairing instead.
Proposal: Create a rainy day fund of ARTH for development of the ecosystem
In my other proposal, I suggested the team create additional staking pool for ARTH to earn MAHA. It was mentioned that there is a limited amount of MAHA available to the team. If we created a “rainy day fund” or an “ecosystem development fund,” it would give the team flexibility to incentivize ARTH staking, trading pairs as suggested above, or any campaign that the team believes will benefit the ecosystem.
The funds would come during the expansion phase. Once all the debt is paid off, a percentage of the new ARTH minted would go to the “rainy day fund” for the ecosystem development before they are offered to those who bonded their ARTH and MAHA. It’s very important to set aside funds during an expansion phase so the team doesn’t rely only on the limited MAHA from the initial token creation. This will allow the team additional flexibility to adjust to any unforeseen events in the future or fund campaigns for public awareness of the MahaDAO ecosystem. The team can use the MAHA/ARTH trading pair to swap for MAHA, rewarding those who provide liquidity and creating additional synergy.
The circulation supply of ARTH will still increase the same during an expansion, less ARTH will be available as seinorage tokens to those who bonded their MAHA and ARTH. In turn, this will also reduce the likeliness of people immediately selling their newly earn ARTH on the open market, creating downward price pressure.