VIP-57 Buyback and Burn and Tokenomics distribution

Proposals
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Dear Venusians, after much anticipation, we are pleased to announce the First $XVS Buyback & Burn of 2022, along with funds distribution as per our new Tokenomics!

In this VIP, we will withdraw the reserves from currencies highlighted in Yellow. Please see the corresponding list below with asset prices as of April 1st 2022 (End of Q1):

A total amount of ~$3,180,066 USD will be withdrawn from our reserves. These funds will be allocated as specified in our Tokenomics. (Venus Tokenomics Proposal)

The fund allocation breakdown is as follows:

30% To Risk Fund: USD $954,022

20% to XVS BuyBack & Burn: USD $636,015

20% to XVS BuyBack to the XVS Vault rewards: USD $636,015

10% to Marketing Budget: USD $318,000

20% to Project Operations: USD $636,000

The total amount of $XVS in USD to be bought back is approximately 1.272M$ (50% to be burned, and 50% to be sent to the vault for continued High APY).

Currently, we can only include 30 Operations within a VIP. Due to this limitation, we are only withdrawing the 15 TOP Liquidity reserves. (Except BNB).

BNB Reserves cannot be withdrawn at this time. BNB will be able to withdraw after the Comptroller upgrade that will be completed in the upcoming weeks. This will make for a HUGE Q2 2022 Buyback!

As specified in our last buyback, this buyback will take place across various DEX’s in order to transparently provide transaction records to the community.

9 Likes
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You are doing a nice job guys! keep Build!!! #XVS #BNB #BNBChain

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Make it happen please.

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Can somebody please explain how we will be able to continue to safely operate the money market with no reserves? Won’t that spike the utilization rate for borrowers and potentially make the money market deposits illiquid for lenders?

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I agree with noobian. The concept of a buyback isn’t a bad idea at all but draining 100% of reserves for the 15 most utilized tokens seems pointlessly risky on top of hard spiking borrow rates.

I would back a PARTIAL reserve reduction but taking it down to zero for any token is to much. Let alone for the most used tokens on the platform.

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Why does venus need to buy things back? Why cant they just take held xvs and burn them. They hold value, so burning them decreases supply.

The counter point to the top two points is that a quarterly buy and burn brings attention to the platform every 3 months. The big question is once the revenue protocol is upgraded, how much revenue will venus bring in to offset this + the large deficit. Thats the real unknown, but you have to assume the team has done analytics on this and is planning on it being big, else this current path is only a path to broke.

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sorry to say, but: save your energy! Posting here is useless as buying a freezer while living at the north pole… just have a look at the VAI thread if you have doubts…
There are about 25 people on the forums that care… nobody of those persons is a mod or dev…

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So now this has passed, we will see what happens once it gets implemented. The removal of reserves (basically excess backing for vTokens) isn’t the same as removal of utilization (which would be redemption of vTokens for the underlying) so rates shouldn’t spike very high is my understanding. As someone short lots of crypto using venus as a hedge this is very interesting.

1 Like