1. Summary
This proposal seeks to replenish the treasury's BOTTO reserves, in alignment with the strategic mandate for Botto as approved in BIP-66, wherein it was noted:
This should also come with schemes for buying back $BOTTO at low prices or some other mechanism to replenish strategic reserves of $BOTTO in the treasury.
Specifically, it is proposed that Botto DAO swap 50 ETH from its treasury holdings for BOTTO instead. At the current token price versus ETH, this would result in about 1M BOTTO being added to the treasury's reserves.
2. Rationale
With Botto's fourth anniversary approaching, the DAO can reinforce its skin in the game and help revitalize attention on the project by doing a sizeable buyback of BOTTO in celebration of the project making it this far.
Per BIP-83, Botto DAO's treasury currently holds about 610 ETH, so the proposed 50 ETH swap for BOTTO corresponds to about 8% of its total ETH holdings. Accordingly, this is a conservative yet impactful show of conviction in Botto's long-term potential.
BOTTO is currently trading at multi-year lows versus ETH; at under 0.00005 ETH per token, BOTTO is now essentially back to where it was trading at in late 2022 in ETH terms, so this would be an opportune time to replenish the treasury's BOTTO holdings.
The treasury's replenished BOTTO can subsequently be used to support operational continuity and other DAO initiatives moving forward.
3. Proposal Specifications
Swap 50 ETH from Botto DAO's treasury to buy BOTTO from the BOTTO + ETH pools on mainnet and/or Base.
Utilize replenished BOTTO reserves to support continuing DAO operations and associated initiatives in the future.
4. Criteria of Success
More visibility for Botto thanks to the DAO's reinforced skin in the game via its bolstered BOTTO reserves.
Increased operational funding flexibility with greater BOTTO holdings in capitalizing on low BOTTO price.
5. Disadvantages/Risks
- Opportunity cost of allocated funds.
