Safe launched and is airdropping tokens to multi-sigs with a lot of activity and eth at stake, which led to 139k $SAFE tokens to be airdropped to the community funds multisig. Half of those will be unvesting on transferability launch, and the other half will be unvesting over 4 years.
Its important that the community fund executes the claim until 27.12.22 10:00 CET (delegating to nexusmutant.eth if his gov proposal passes) or the allocation will be transferred back to the SafeDAO treasury.
Given Nexus has strong growth goals, and $wnxm is undervalued selling below book value i’d propose that the community fund sells all $safe tokens as they unlock. To avoid timing the price, i’d propose to do so in two stages.
If $safe is worth above 0.7$ i’d propose to sell 50% in exchange for $wnxm
If $safe is worth above 1$ i’d propose to sell the other 50% in exchange for $wnxm
This could be extremely easily executed via gasless limit orders between the two pairs, but might be more advantageous via cowswap.
At 1bn fully diluted safe tokens, its easy to calculate the mcap → eg. $1 per safe is $1bn safe fully diluted mcap
What to others think? Just wanted to start this conversation
As a side comment opinion: Huge fan of $safe and want nexus to be as supportive as possible, while also knowing that most airdrops are getting dumped heavily on the months following launch (as can be observed with most), and that $wnxm is still almost 50% below book value and thus provides more value for the mutual to be bought back.
Just an FYI: The Safe token isn’t transferable at this point in time. There’s active discussions on the SAFE forum about unpausing the contract so people can freely transfer/trade the SAFE token.
I’m personally in favour of waiting to unpause the token contract until after the claim period ends. This has benefits for anyone who is claiming and has tax obligations for their SAFE allocation.
A worthwhile discussion to be had here, and I’m personally in favour of executing the existing buybacks we have planned (i.e., the previous proposal that you put up on Snapshot that passed AND the ETHW sale and subsequent buyback of wNXM) before exploring other buybacks.
Just wanted to inform others that the SAFE token isn’t currently transferrable. If that changes, then a proposal to sell SAFE could be put up for vote.
Yes I know, just wanted to start the conversation early enough to form some soft consensus how the nexus community fund should treat it, and ideally we can put it up for a vote before it becomes transferable to have consensus and mechanisms in place to act on the proposal once it is tradeable.
I’d prefer to see us sell all tokens, presuming they are above $1, as they unlock. We’re already integrated into the Safe app system. I don’t see Safe as the kind of group that’s going to take massive sides and promote any given protocol, since their whole approach is that they offer a platform for users to use any dapp with a multisig.
Our community fund is relatively small and with current expenses (and current wNXM price) will be dry before we know it. I’m supportive of this because wNXM is so undervalued and we need the funds in the community fund. If the community fund had 10-years worth of expenses, I would be inclined to keep the SAFE and participate in governance. Unfortunately, I lean towards us needing the funds, and those funds will pay salaries of members who will provide more value to growing the mutual than we might get from participating in their governance.
Good points, tend to agree. And will update the proposal to reflect this… do you think the updated proposal makes sense? @Dopeee
I’d vote YES for this. Thanks for putting this together Vincent
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This proposal has been transitioned to a Snapshot vote to determine if the mutual should use available SAFE holdings to buyback wNXM once SAFE becomes transferable.
After an open comment, review period of more than one week, the choices presented in the Snapshot vote are:
You can vote on the Snapshot proposal from 12 October at 1:02am EST / 5:02am UTC until 20 October at 1pm EST / 5pm UTC.
Snapshot vote: Allocate $safe to buyback $wnxm
sorry for joining in late, just got aware of this while looking at the snapshots. In general I agree, it’s worth think about selling at least part of the $Safe tokens and buy undervalued wnxm.
But putting this up to vote now seems a bit early to me. There isn’t even an unlocking date for $Safe announced and no one knows the price and liquidity at start.
You are right that price tends to be higher short time after the market starts but it isn’t always the case, and the value counted in USD (or any other fiat) is also depended on general crypto sentiment which will most likely become better again (although it might be in the far future).
Imo we should not sell more that 50% of our holdings at the start and we should give a price in wxnm, not in usd if buybacks are the primary goal to achieve.
But I am also fine with holding the $Safe and postponing the decision about eventual selling to a later point.
This Snapshot vote has closed, and members voted 79.84% in favor of using the SAFE assets–that will be available once the SAFE token contract is unpaused–to buyback wNXM below book value.
Per @vincentj’s proposal, members have signalled that they would like the SAFE in the Nexus Treasury to be used to buyback wNXM according to the following conditions:
- If $safe is worth above 0.7$ i’d propose to sell 50% in exchange for $wnxm
- If $safe is worth above 1$ i’d propose to sell the other 50% in exchange for $wnxm
Once the SAFE token contract is unpaused, this discussion and buyback can resume. You can review this Snapshot vote for more information.