Initially I found it problematic for Vote-2 that we need to sell Cloud to state based on that proposal that we don’t want Cloud sold at this price. Putting up a sell wall at a cheap price just so some buyers don’t impact the price and improve it seems strange, it’s like having TGE 2.0 and handing over supply to some third parties vs the people and community who supported the LFG with Vesting from launch.
But then I was told we can buy the fail using metadao Ui. Which to me still makes the vote seem incentivised to pass, if the main Ui funnels people to support the proposal, with the incentive of buying Cloud at a cheap price, vs needing to sell it at a price they clearly don’t support or they’d support a sell wall down here and the team to sell this cheap. But then if you want to buy Cloud to fail the vote you need to go to some backwater of the process and figure it out yourself, which very few people likely would. Anyway… lets say that’s settled and Vote-2 isn’t setup to pass.
I’m still trying to figure this voting system out. so ideally price of proposal matches price of live market to not arbitrage outselves. 1. we sell to fail the proposal or buy to pass it. or with some third party metadao we buy to fail the proposal and sell to pass it. 2. the reward isn’t based on trading volume activity within the proposal LP, its just based on how much staked Cloud you have. 3. you just need 10 usd volume to get the reward based on sCloud.
so people are just maintaining the proposal LP to match live price. they can do it by either buying or selling to keep the price UP or Down in the proposal LP. their trading volume doesn’t impact the outcome or reward and the only thing impacting the voting passing or going through is how much people can make the proposal LP price drift from the live price at the start of the vote by some pre determined factor.
people can go with the wind, even the largest Cloud stakers can choose to do 10 usd volume and not partake in governance at all for max reward.
lets say the market has a big macro move up, so SOL runs 30% and Cloud naturally follows, so then the Proposal LP follows up. people can buy the fail or buy the pass up with live price, and if market price happens to push proposal price up, the vote passes? orr only if more people bought the pass token vs bought the fail token on metadao third party website?
LOL its 7:30am and I just woke up and suddenly feel more confused about what we’re doing in this governance model than ever before. does anyone have a simplified tldr of the purpose of this system or why we are doing it. And I do not mean the idealism of Futarchy or what that basically is, I just mean for Cloud, for Sanctum, lets say Cloud-2 goes live as is… how does it basically work, what are we doing… other than giving a good arbitrage opportunity to the proposal LP by caring enough to manipulate the price, although price should match market if you can buy the proposal or sell the proposal passing to maintain the price as is.
can the outcome just be governed by the macro market nothing to do with the proposal? and why would price be the deciding factor if people can push it up within the proposal LP supporting or not supporting the proposal, or down. so we are trading in an isolated LP which is impacted by the larger live price AMMs and larger LPs for cloud, but doesn’t impact the true live price of cloud.
basically i’m lost… what are we doing exactly