Proposal to create mechanism for automated buybacks and burns

Community Discussion & Proposal
1

Proposal: Creating mechanism or rules to make BBs and Burns strict and/or automated

Overview: Creating mechanism (via contracts) to make $ALPACA buyback and burns automated / creating transparent and strict rules for buyback and burns.

  1. Automated BBs and burns via contracts (keep in mind im not programming guy): creating contract that will automatically buyback $ALPACA using treasury funds and immediatly or later burn them.
  2. Creating strict rules & algorithms for BBs and burns that Alpaca Team will follow. So it will not up just to some Senior Alpacas to decide how many funds we will use this week to buyback, there will be strict rules for different situations (depending on how many funds are in treasury)

The exact mechanism and how frequently BBs and burns should happen are also subject of discussion.

Motivation: I was very dissapointed when i saw that Senior Alpacas didnt use this 1.2$Mn from treasury to buyback ALPACA on it’s lowest price - 0.25. I think possible amount of BB & burn could be approximately about 5Mn ALPACAS. Isnt this great? But Senior Alpacas have other thoughts on how to make buybacks. I assume that Alpaca team just wants to make news on subject “this week was deflationary”, even tho if they would spend 1.2$Mn in one time at price 0.25 BB & Burn would be more bigger and would make 10 deflationary weeks. I think this is bad strategy.

Also when there were big BBs from Alpies treasury team said that there is no reason to make them bigger than 1Mn Alpacas per week. Now BB & burn is only about 500k, so rules are changed again for whatever reason and it’s bad for protocol reputation.
So to prevent this kind of situations and make BBs and Burns more strict, transparent and decentralized im making this proposal.
Creating strict rules or automated mechanism for BB and burn will bring more decentralization —> trust from crypto community to the protocol —> make protocol more popular —> price will follow.

Implementation: I think creating automated mechaism with hourly/daily buybacks burn are the best option, but as i mentioned earlier its subject of discussion.

References: $BIFI has similar daily buybacks

That’s all folks, feel free to discuss. I hope there are people that are more technically educated in this topic than me who will develop this proposal forward

(sorry for my bad english)

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2

Most of the users resented how important it is to draw a deflation for the project, and not to make redemptions, as stated earlier, this is really not correct and not beautiful to old users. You can also redeem on Binance, where liquidity would allow, not to feed the speculators.

3

We already have an automation bot for buybacks.

Please also reference this:

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4

these bots are constantly monitoring such transactions, delaying the ransom will not change anything. the prolongation of burning is reminiscent of manipulation

5

I think you might be in the wrong thread. Otherwise, I don’t understand what you were trying to say here in the context of this thread.

6

The document you link to has a link to The Sandwich Attack Concept, which says that 1inch is immune to this attack. does the team redeem the token in 1inch?

7

Can you elaborate on how delaying the burning mechanism is reminiscent of manipulation?

Please be aware that burns are done at random/over a longer period of time to avoid bots/people front-running the burns.

8

Yes, we do our buyback on 1inch. and there are many transactions spreaded out over time. You can look at the tx records on the liquidation treasury address which is public.

here: Address 0x0FfA891ab6f410bbd7403b709e7d38D7a812125B | BscScan

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1inch is not immune. Most of the Alpaca liquidity on BNB chain is on PancakeSwap so 1inch will just route the tx to PancakeSwap. Even if it routed it to 5 DEXs, it wouldn’t make a difference since it would still cause price impact, which is the necessary component for a sandwich attack.

1 Like