✔️[ABIP-08] - [RFC] pABI discounted buyback, Governance & lock for contributors

Summary

Allow buy backs of pABI at a discounted price. Give pABI holders the same governance as ABI holders, and lock any bought back or traded pABI for the full three years (no linear vesting).

Abstract

The team has decided to allow a buy back of pABI at the same discount price currently ABI is trading at in the market. For this purpose a uniswap v3 Pool has been setup with an initial liquidity of 50k DAI, and the team will provide more if needed. The pABI liquidity is a concentrated pool and will guarantee a price of $1.4-1.6 per ABI.

The acquired pABI will be moved to the Team DAO wallet and provided to contributors over a three year locked period (no linear vesting).

Due to the recent market downturn, some pABI holders had requested an exit. Given the stressed prices and to be fair to ABI holders, the price offered is much lower, however it allows them to sell the entire allocation without waiting for a three year unlock.

Motivation
The team wants to align incentives with contributors and give them a much bigger locked stake in ABI. For this purpose the team is putting in funds to buy back the pABI at a discount.

How this helps us:

  1. We can now offer a much bigger allocation to core contributors. Some of whom have recently joined us in marketing, sales & development.

  2. The tokens will be unlocked in three years (when all pABI vest) so the long term incentives for contributors will also be locked regardless of market conditions.

  3. Allows an exit at discounted prices for those who need one.

What will happen:

  1. Any pABI sold or traded on the uniswap pool will be locked for the entire three years.

  2. No change for any pABI holder that does not sell into the pool or trade their token.

  3. Acquired pABI will be used to incentive new DAO members and give them a meaningful vote also.

  4. Allow any wallet holding pABI to vote at the same weight as regular ABI holder.

  5. After the three year unlock, each pABI may be directly redeemed for ABI with no backing or any other conditions.

  6. Treasury backing will not go down as the funds for buybacks are coming from the team wallet and not backing.

  • Yes - Lets vote
  • No - (Please provide feedback)

0 voters

So pABI will no longer have to provide backing to be converted to ABI?
Will pABI still be able to be redeemed for backing?

Yes the pABI acquired via buy backs will be locked for 3 years as regular ABI.

And the claim on backing assets…upon unlock can pABI be burned for ABI backing as per the original plan?
Or no and it simply converts to ABI?

Excellent question.

  1. if pABI is bought back with team funds (as is proposed) this will not be burned and kept in the DAO - locked and distributed to core contributors that join Abachi (we will have another vote when this happens).

  2. pABI that is bought back via redeem (as in original linear vesting) will be burnt as previously planned.

So point 2 would include a current non-holder of pABI who chooses to buy pABI from the Uni v3 pool?
For example, they buy pABI now and wait three years until unlock at which point they may choose to:

  1. convert to ABI but must provide backing to the treasury. Or,
  2. redeem their pABI for backing value and hence withdraw funds from the treasury.

Is that correct?

This is correct. Anyone would be able to buy pABI, forget about it for three years and unlock directly into ABI. The money in this case would be added to the treasury.

This doesn’t affect the original pABI holders, and they can redeem their quarterly unlocked pABI agsinst backing if they wish?

This is Correct