I think a smart treasury is a cool idea. But one thing I was curious about is how much would we actually have to re-buy in order for it to make sense? Will it even create a enough buy side pressure? I think it’s important to weigh the opportunity cost vs the benefit received for implementing a smart treasury. Also, if we start doing pickle buy backs instead of sCRV as a reward, what’s to stop a whale from staking pickle to earn weekly pickle buy backs and just dumping it for passive income? At least by dumping sCRV, it doesn’t effect the pickle price. If we start doing buybacks via a smart treasury, it could incentive large stakers to just dump pickle after collecting rewards. sCRV rewards at least protect pickle from being dumped on in this fashion.
Based on what I can see, you’d have to buy back a significant portion of the pickle supply to move the price up significantly. And again, will that even be worth it? Or should we leave it up to the free market? Pickle buy backs are great but it’s essentially just a way to artificially inflate the pickle price.
I think in the immediate term, treasury funds and developer’s time would be better spent continuing to make incremental improvements to the UX and develop solid strategies that generate cash flows to the treasury. Maybe we can devote some portion of the treasury to more marketing materials and education? or paying to outsource some of that as others have mentioned.
In doing my own research in what moves price in crypto, a few things stand out to me :
Momentum : (once price gets going in one direction, it tends to continue unless there is a significant reversal on buy/sell side. Hence , why we often see parabolic runs followed by massive dumps until demand picks back up again.
Sentiment : Look at what happened to YFI and Blue Kirby recently. Before the drama, YFI was on a meteoric tear in price. Everyone was talking about “the flippening”, how they’d be worth more than Berkshire Hathaway, etc. etc. It was all super bullish. YFI looked unstoppable when just considering the price. Then, sentiment shifted . . drastically. Andre deployed an untested contract, people lost money, and all of a sudden Andre and Blue Kirby became villains overnight. People got pissed, started to dump , which caused a huge reversal in momentum, a snowball effect if you will. Is YFI finished? Of course not. But it’s evidence that price mechanics in this business are still immature and fragmented.
Manipulation from a fractured market and opportunistic liquidity : Today’s market is super fractured, which makes it easy to manipulate price if you have enough capital and market savvy to make the right trades. Additionally, there is a problem of opportunistic liquidity, i.e. hopping from one farm to the next to catch the highest APY. Unfortunately, this isn’t something many people can prevent in the short term until the market matures and valuations reflect truth.
So how do we promote upward pressure on Pickle price? The way I see it on the short term horizon, we do this by increasing TVL and brand awareness. I think the Pickle team has done a great job of this so far. If we can continue to make design improvements to the website and make it as easy as possible for total newbies to hop on board, it will help attract new capital. Also, I know there is the whole saying of “Don’t trust, verify”. This is true, but there is also an element of trust involved in these projects, especially for those who can’t code. If people know they can trust Pickle with their money and know that the project can continue to deliver on its promises, it will strengthen the brand’s image even further. Again, I think Pickle has done a great job with this so far.
As a last note, I think for the near term, a proper blend of marketing, education, and continual improvements to UX design will have a positive impact on Pickle. Of course we want to continue evolving new strategies, but I think the dev has shown they are capable of staying nimble. And we don’t want to have too many strategies at once. Just my two cents