I would like to reopen the discussion/debate on community HDX LP🧑‍🤝‍🧑 vs treasury HDX LP🏦.

I was initially against additional treasury HDX LP🏦 because of strong community demand, but after observing the impact on LRNA for several weeks, my view has shifted. In addition to the normal supply cap reductions, I would like to see treasury HDX LP🏦 added in future referendums. 

I get that my opinion may be a minority one and I am open to having my view changed. 

The main issue is that HDX is volatile and that volatility results in LRNA being extracted and dumped on us. 

Current HubAssetImbalance is 986 LRNA or about $23,664. I believe this implies we need almost $5M in volume ($24k * 100 / 0.0005) to get that back to zero! That's assuming no more LRNA is sold back to the omnipool.

With treasury HDX LP🏦, less LRNA will be dumped on us. In the long term, this helps the community the most. HubAssetImbalance will have a better chance of getting back to 0 and the omnipool can start bidding HDX. 

One might be inclined to say: 'But, I want to earn fees on my HDX'.

I would reply that treasury HDX LP🏦 provides a fairer way. 

Right now, you need to be logged in at the right times, during dips or treasury LP adds, to get HDX into the omnipool. This is hardly a fair system as it tends to benefit folks in certain timezones and those who do not have work or obligations and can sit around watching for dumps all day. Plus, large holders 🐋 can fill the void in a single LP add. We have seen several people complain about not being able to get their HDX into the omnipool, even after weeks of opportunity. 

With treasury HDX LP🏦, if desired, we could vote to have earned fees paid out to HDX holders. I am not suggesting we do that, as I would rather the treasury LP🏦 just grow for now, but we would have that option.

I would also make the argument that letting a single entity gain too high a percentage of HDX LP share creates meaningful risk. 

I intend to vote against future treasury LP additions that do not include HDX LP unless someone convinces me otherwise.

I will abstain from today's vote


#45 Treasury HDX Liquidity Provisioning