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 allocate up to 50 ETH from its treasury holdings to swap for BOTTO instead. At the current token price versus ETH, this would result in over 1M BOTTO being added to the treasury's reserves.
In parallel, it is proposed that the 50 ETH apportioned for future BOTTO buybacks may also/alternatively be used by Botto's core team to facilitate market maker support for Tier 1 CEX listing(s), in alignment with the recent approval of BIP-83 (C). In particular, up to 50 ETH may be used to pair with BOTTO left from BIP-42 for such a purpose. Accordingly, in the event of such CEX listing(s) being executed in the future, any remaining BOTTO from BIP-42 may then be returned to the treasury, effectively replenishing the treasury's BOTTO reserves in accordance with the stated goal of this proposal.
2. Rationale
With Botto entering its fifth year, 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 (A), 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 up to 50 ETH from Botto DAO's treasury to buy BOTTO from the DEX pools on mainnet and/or Base.
The swap will be executed at the discretion of Botto's core team following the approval of the proposal, as applicable. For transparency, Botto's core team will announce after partial swaps have been completed, until the 50 ETH total has been utilized.
The swap may be largely facilitated directly thru the BOTTO + ETH pools on mainnet and Aerodrome, which have the deepest liquidity each, and/or via a metaDEX aggregator like Llama Swap.
Note: Per the summary section above, up to 50 ETH may also/alternatively be used by Botto's core team to help secure Tier 1 CEX listing(s), in alignment with the recent approval of BIP-83 (C). In the event of such CEX listing(s) being executed, any remaining BOTTO from BIP-42 may then be returned to the treasury, thereby replenishing its BOTTO reserves as well.
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.
