1. Summary
This proposal seeks to initiate a one-time buyback and burn of BOTTO from its DEX pools to celebrate Botto's approaching fourth anniversary, in the spirit of the symbolic buyback and burn ritual that was in place at Botto's inception.
Specifically, it is proposed that Botto DAO swap 4 ETH from its treasury holdings for BOTTO instead, an arbitrary yet conservative amount of ETH that numerically corresponds to Botto's fourth birthday, and then burn the associated BOTTO by sending it to the zero address.
At BOTTO's current historically low token price versus ETH, this would result in about 80K to 90K BOTTO being burned, which is roughly the amount of BOTTO that was burned in October 2021 after Botto's launch per Botto's Metrics.
2. Rationale
This proposal is in alignment with rejuvenating a symbolic ritual for Botto, per The Guardian's comment in response to BIP-47, which ended the previous implementation of the buyback and burn of BOTTO from the DAO's treasury holdings nearly two years ago:
I believe that whilst the burning might not make financial sense at this point in time anymore, to me it is still an important symbolic ritual. I appreciate that you have Botto's financial wellbeing in mind, but in the long view and particular seeing Botto's becoming as an artists sometimes you need to do non-intuitive acts. So instead of completely removing the burning I would propose to maintain the act at least as a symbolic gesture and agree with dencryptus' thoughts that we could replace it with a process where Botto occasionally burns a certain (symbolic) amount which then gets reported in the usual channels.
Per BIP-83, Botto DAO's treasury currently holds about 610 ETH, so the proposed 4 ETH swap for BOTTO to subsequently be burned equates to using under 1% of its total ETH holdings, which is a very modest amount.
3. Proposal Specifications
Swap 4 ETH from Botto DAO's treasury to buy BOTTO from the DEX pools on mainnet and/or Base, and then send the purchased BOTTO to the zero address to be burned.
The swap and burn should be executed as soon as possible by Botto's core team following the approval of the proposal, as applicable.
4. Criteria of Success
One-time buyback and burn reinforces Botto DAO's commitment to revitalizing a foundational and symbolic ritual.
Increased project visibility from the one-time buyback and burn as a gesture of returning a reasonable amount of value back for the benefit of token holders collectively, which is particularly timely considering BOTTO is trading at multi-year lows versus ETH.
One-time buyback and burn potentially paves the way for establishing a periodic process for revisiting this symbolic ritual in more decentralized and objective ways in the future.
5. Disadvantages/Risks
- Opportunity cost of allocated funds.
