Treasury Management and first Usage

[CryptoBamba]

Proposal:

• Converting Fees in ADA to MILK

• First Usage of the treasury

Plan of Action:
With Governance already on Mainnnet MILK token and it’s holders can now directly benefit
From the treasury.
I suggest we use a % of the fees that are collected in $ADA and automatically buy back MILK of the Market with it.
proposals like this already have been made however I thought since the treasury got upgraded with new tokens and there were no multiple option I decided to make one that can add more flexibility.

Benefit:

• Upward pressure on the MILK token

Con:

• If 100% of ada will convert to MILK the treasury will be less diversified.

Treasury Resources:
70k Milk + Additional 15k every month (total 250k milk)
30k snow
3.9M OPT
50k Lifi

% Of total frontend fees that goes to the treasury:
20%

Question 1:
20% Of the Frontend fees are allocated to the treasury.
Converting a % of the Fees in to MILK as a form of a “Buy Back”
What percentage of $ADA should be used to buy back MILK?

1)100%
2)75%
3)50%
4)25%
5)Keep it as $ADA

Background for the 2nd Question:
Now That $MILk holders benefit for the DEX Trading volume directly
There should be a common interest to create more volume on the Dex so we can fill up the Community treasury even more!

One of the ways to Create more interest is through competitive challenges!
So here I thought maybe Muesli can start a Trading Competition/Promotion on the DEX!
Now with the MultiDex Routing We are more accessible to larger volumes and more traders.
So the Idea is to boost the frontend fees generated by the promotion to add more Value to our treasury and assuming we choose to buy back MILK using the fees.
We can create an upward pressure on the token which will better promote the liquidity pools , the holders and the DEX itself.
also engaging in a promotion like this shows confidence in the protocol!

I’ll Brake down how it work:
Every Week we will Host the “Hungry Cow Olympics” which is a trading competition with prizes
where the top 10 which will be determined in how much volume they created (using every feature)
will earn rewards respectively for 10th place receiving the lowest amount of rewards and 1st get most of the prize pot.

There will be a LeaderBoard page presenting the top 10 or 100 traders using MuesliSwap
without fully exposing their wallets.

• PRO - This will generate more engagement and entries on the site as people will be curious to see.

• CON - Needs to be Developed.

In order to mitigate bot manipulation I suggest we add a few criteria and mechanism:
1# - Instead of relying solely on trading volume or frequency we can use unique trading metrics that are harder for bots to manipulate.
For example, consider incorporating metrics like wallet age diversity of trading pairs or holding periods.

2# - To participate in the competition you need to hold a certain amount of MILK.(To vote on)

Resources needed for “Hungry Cow Olympics” Trading competition (Name can be changed)
I suggest we use 25k LiFi and 25k OPT from the treasury to reward contenders.
distributing over 12 months.
here is the proposed allocation and first week example:

Question 2:Do you agree on the general plan of action for a trading competition with all the mention details? (Hungry Cow Olympics , Leaderboard , Top 10 gets rewarded , Mitigate Bot manipulation by using spacial criteria while supporting MILK.

1)Yes I fully agree
2)I agree on the plan not on the amount of allocated tokens of lifi and opt
3)Don’t agree

question 3: How much MILK should a contender hold in order to participate?
1)200 Milk
2)100 MILK
3)50MILK
4)25MILK
5)No MILK

[Banano]

Great idea!!! Also strengthens the volume, also supports the price, also uses the treasury correctly and on the other hand returns to it through a high volume. I really like this action. (Must have at least 50 milk)

[Bensuke]

I like these ideas and would support 50% of the Ada going into the treasury being spent on buying back Milk.

For the Hungry Cow Olympics, what information would be displayed on the leaderboard? I guess this would only display people who have opted in? I think the last thing we want to do is put people off making big trade who want to do so privately.

[Bensuke]

Would be cool if the remaining Ada could go into a staking pool. Stake Milk to earn Ada

[QuakerGoats]

I will post a more serious response later, but needed to jump on a say the “The Hungry Games” is sitting right there

[CryptoBamba]

So I wrote on the proposal that the wallets shouldn’t be fully exposed (Semi Hidden)
Or maybe another clever way Muesli has to give them the right amount of privacy.
However I agree

Around you second comment.
Could be interesting to have milk stake for ada

[Ben]

Love these ideas. well thought out. Going to sit down and try and map out the Pros and Cons so I can have my voting decisions ready

[damoroz4]

I suggest using ada to buy not only milk, but also snow.

[Selim]

Just wanted to drop a quick note to say thanks for the super precise and detailed proposal – great job!

So, about Q1, I’ve got an idea I think could be pretty cool. What if we set up a percentage system that kind of moves with the Milk price? Like, when the Milk price goes down, the buyback percentage goes up. To keep things organized, we’d need to pick a top price where the buyback percentage goes to zero, say 50 ADA.
Here’s the math bit: Percentage = 2 * (50 - Milk price). Now, let’s put this into action:
If Milk is 10 ADA, we’d go for an 80% buyback.
At 20 ADA Milk, we’d do 60%.
For 40 ADA Milk, it’d be 20%.
And anything more than 50 ADA Milk, we’d skip the buyback and the ADA fees would just stay put.

Seems like this approach could help us stay flexible and adapt to how the market’s moving. Would love to hear your thoughts on this twist to the proposal.

Q2: I fully agree

Q3: 100 Milk

Big thanks again for all your hard work – looking forward to diving deeper into the other ideas

[CryptoBamba]

Q1 - I agree should be more dynamic!
I’ll add it to the proposal !

[QuakerGoats]

Suggestions for the competition:

To enter hold 100 milk and a Hungry Cow NFT in wallet. Pros of hungry cow is that gives it extra utility, which community has been clamouring for, but also helps the anonymity issue. If anyone doesn’t want to be included for privacy reasons they can simply not have a cow in their wallet. Include that explanation in the competition rules as a way for anyone to opt-out.

Make it a monthly competition vs weekly - pros feels and looks like a bigger prize pot for contenders (even though it’s the same amount), less work for team to organise, order book traders will be better represented over 1 month, easier to market, hype and engage on socials with 12 monthly winners vs 1 every week for 52 weeks.

Instead of top 10 by volume consider having wild card entries as well. So any trade on the MS Dex, regardless of amount could be selected at random and take a spot in the table. I would suggest top 7 by volume and then 3 wild card entries making up what would have been the bottom 3. This helps include and engage all existing and new users regardless of wallet size.

[Noningurr]

Question-1: Option “Selim - flexible”
Question-2: Option-1 → Fully agree
Question-3: Option-2 → 100 Milk

[chaham_ovadia]

Im in! This is a great proposal

[Ted]

I Propose that 50% of the 20% frontend fees earned by the DEX should remain as ADA & earned by MILK holders for holding MILK, MILK holders don’t have to lock their milk to earn this ADA, they only have to hold MILK. While the remaining 50% of allocated frontend fees is used to purchase MILK from the DEX and locked in the treasury for future development.

[Ted]

I also suggest 50% of The 70k Milk and 50% of the 15k milk per month that would be in the treasury from the 250k milk should be earned by MILK holders that lock their MILK token for variable periods of time, the longer the lock up, the more percentage earned in dividends and the other 50% to be used for further development of the DEX & marketing.

I’m suggesting this should be earned by a lockup to avoid dumping because we all know what free tokens cause.

[Dago]

I support this message

[zeekip]

-50/50 ADA/MILK
-Don’t think those rewards will attrackt people.
-100 MILK to join.

[RSWilliams]

This is very well thought out & impressive. I echo Selim’s responses to all questions 100%

[CryptoBamba]

Q1 Update!

For a more dynamic Buyback I’ll go with Sleim option if possible

What if we set up a percentage system that kind of moves with the Milk price? Like, when the Milk price goes down, the buyback percentage goes up. To keep things organized, we’d need to pick a top price where the buyback percentage goes to zero, say 50 ADA.
Here’s the math bit: Percentage = 2 * (50 - Milk price). Now, let’s put this into action:
If Milk is 10 ADA, we’d go for an 80% buyback.
At 20 ADA Milk, we’d do 60%.
For 40 ADA Milk, it’d be 20%.
And anything more than 50 ADA Milk, we’d skip the buyback and the ADA fees would just stay put.

Seems like this approach could help us stay flexible and adapt to how the market’s moving. Would love to hear your thoughts on this twist to the proposal.

[BlockJock]

start it off at the lowest amt 25 milk (this gives everyone equal opp to participate, the lifi and opt token reward seems fair and can be adjusted as it grows. Also you could set a tx vol % calc which if we we hit certain vol % increase thresholds the amt of reward goes up with it. When you say every feature, we are talking swap, liquidity, farms, myield and mvoucher? Feel like there should be a added incentive for those who turn their myield to mvoucher/milk every 30 days? Total mvoucher to milk= token X (possibly even add a sponsor here from a project wanting their token out there as well maybe)