Nothing in this discussion is financial advice! Everything below is purely my opinion.
We are not far away from a year of existence, and already we have had a wild ride. I would like to discuss what I believe could be a fundamental shift in our existence, with the idea of becoming a strong and enduring ecosystem in ways that no other charity coin has accomplished. To get straight to the point, I will briefly summarize the primary lessons/problems coin from the past year from my own point of view, and then I will discuss potential solutions. I will also highlight many of our strengths and why I personally am very optimistic about the future of Pawthereum.
Our tax structure is and has not been optimized. I have submitted a proposal to reduce selling pressure by selling a lower percentage of total volume into our own LP for charity and dev/marketing purposes. We also should raise more liquidity through taxes and use dev funds for fun smart contracts/cool use cases of Pawth. For example, I am working on a smart contract that would require some Pawth (e.g., 2.5 million), and we need dev funds in Pawth to support these projects. The difference with projects such as these is that there is no Pawth being sold into our LP. The finalized proposed tax structure is still to be determined following additional brainstorming, and that conversation can be found here: Tax Structure Change - #3 by Kevin93). Keep in mind that 0.5% of Dogecoin’s volume would be a huge deal for charity, and would be a world changing difference. The goal is to get Pawthereum to that level such that a small, sustainable slice of total volume is a lot of money for animals.
We need to keep costs low and generate profits. We should avoid excess expenditures and instead focus our efforts on and funds on things that generate a long term return on investment for Pawthereum. The benefit of our team/community is that we are not paid, and therefore this project is driven from passion.
a. Here are some projects that are planned/in the works that could generate funds for Pawth: 1) PawSwap, 2) Taxless Arbitrage, 3) Merch Store, 4) NFT collections, 5) a personal project that I am working on which is not yet guaranteed but could generate a lot of funds/visibility for Pawth. I will not name it at this time and would not expect it to launch for a couple of months if all goes well.
b. Here are some ideas for raising additional funds as we gain more money to invest:
1) an Eth validator held by Pawthereum which requires at least 32 Eth and pays out interest in Ethereum
2) using decentralized lending protocols to lend out USDC, the interest from which could be as high as 8% APR.
I propose that a percentage of all profits be reinvested in projects that should be dependable and should gain long term funds for Pawth. Introducing the PawthIRA (can go by a different name, as it’s not a real IRA). Imagine if 1% of our volume had gone to a USDC fund since the inception of Pawth. We would be gaining interest on hundreds of thousands of dollars in stable coin right now, which should more than cover all of our operations. I understand that inflation is ridiculously high right now, but inflation is unlikely to stay so high in the long term.
In summary, profits should either go back to our liquidity pool via buybacks and liquidity pairings, fund current operations (which should be kept cheap), or go back to our investments (ETH/USD). These investments should not be removed/pulled from until the principle balances are high enough for the interest to cover monthly expenditures, after which interest, not the principle balance, can be allocated to other developments (e.g., exchange listings, cross chain liquidity pools (e.g., Polygon), marketing, other investments, or charity). An alternative is to get the principle balance to a minimum level (e.g., $400,000), and have a policy such that the principle amount is never to fall below this threshold.
Let’s restructure Pawthereum to focus on the long game. We have a LOT of great things about us for a marketcap of this size (trustworthy and skilled team, solid community, great website, good donation track record, nice branding, ecosystem includes Pawthcast, Founders NFTs, PawDAO, PawSwap, MyPawth, and more being made). Our smart contracts also allow for flexibility. Let’s point the ship in the right direction and set course.
Thanks for reading,