Buyback Using Treasury Funds Before Using ITAM

Community Discussion & Proposal
1

Simple Summary: short proposal to use all of the BSC liquidation treasury funds (which is $320k worth of non Alpaca holdings) to buyback and burn Alpaca before the ~917k ITAM (~$642k) conversion.

Motivation: This way more Alpaca would likely be burned as we can at least expect a short term price appreciation once the 917k ITAM is converted to Alpaca.

Implementation: Continue periodically buying back Alpaca with treasury funds. Convert ITAM to BUSD. Finish using liquidation treasury funds to buyback and burn before using the BUSD from the ITAM sale.

Look forward to seeing some discussion and feedback regarding this proposal!

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I get the idea of buying more $ALPACA for a future burn, but how relevant is this if buybacks are already spread out to avoid large price impacts?

3

Thanks for the suggestion. The buyback is already spread out over one week. You can read the details here AIP Details - Alpaca Finance

The total buy volume is actually very small relative to the total ALPACA daily trading volume
(90k / day in buyback vs. 10+Mn avg trading volume) so it shouldn’t have short-term impact.

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