As PathDAO transitions to the Virtual Protocol, we recognize that some of our current holders may not align with this new direction. To facilitate a smooth and equitable exit for these members, we are proposing a buyback model at a predetermined price.
Buyback Price: The buyback price is set at $0.0077, equating to a Fully Diluted Valuation of $7.7 million. This figure is derived from our current financial position:
Considering the illiquidity of our NFTs and tokens acquired during our Venture Capital phase, we exclude them from the buyback consideration. This adjustment leaves us with a liquid capital of $8 million.
Anticipating that core contributors will require approximately $3.0 million over the next 24 months to develop the protocol, we have allocated this amount accordingly.
Consequently, the remaining balance for the buyback fund is $5.0 million. Of the 100% token supply, ~65% of the tokens are allocated, with the remaining as unallocated in our ecosystem treasury. This brings the buyback Fully Diluted Valuation (FDV) to 7.7mn (5mn/65%).
OTC Platform Transaction: We will engage a reputable Over-The-Counter (OTC) platform for this process. Token holders interested in this buyback can deposit their PATH tokens into a decentralized escrow service provided by the platform and receive USDC in return. This offer will be available for a two-week period, with the start date to be announced.
This buyback approach is designed to provide a fair and orderly exit for stakeholders who no longer share our vision, while also preparing a solid foundation for our new holder base as we embark on the exciting journey of transforming PathDAO into the Virtual Protocol. This strategic move is key to ensuring a seamless transition from a gaming-focused DAO to a broader, innovative protocol with a renewed focus.
A. Agree in full to the buyback proposal
B. Disagree that there should be a buyback proposal at all
C. Disagree on the pricing, a revised proposal should be crafted