Proposal
If we can get soft commitments from potential buyers of $BRIGHT with a value of at least $100,000, we should hold a public auction of 2 million $BRIGHT from the community pool which currently has 6 million $BRIGHT.
The proceeds will be sent to M3 (the multisig that controls $BRIGHT issuance) and used to create additional liquidity in the ETH/BRIGHT Uniswap v3 pool on mainnet.
Benefits to new buyers of $BRIGHT
With a gnosis auction, buyers can safely and easily buy large amounts of $BRIGHT, setting the price range they’re willing pay, and don’t have to worry about dividing and timing their buys to avoid slippage as they might with Cowswap (or Uniswap or other decentralized exchanges).
Benefits to BrightDAO
BrightDAO will benefit from the liquidity created on Uniswap v3 . This will allow more proposals to pass and pay for improvements to BrightID and related projects without depressing the price of $BRIGHT.
Benefits to all $BRIGHT holders
Auctions will open up $BRIGHT to a new kind of holder that prefers to transact in larger amounts. More holders and more demand means a potentially higher value of $BRIGHT.
Related: A circular flow of $BRIGHT
Unitap and Aura are two examples of projects that have chosen to benefit from BrightDAO’s governance to make proposals and fund their teams.
Unitap has a clear revenue model (1% fee of distributed funds). They will use their revenue to buy $BRIGHT, add it to the community pool, and then use BrightDAO proposals to pay their team in $BRIGHT. This means that excess revenue will raise the price of $BRIGHT.
As more projects with revenue streams use BrightDAO for governance, a circular flow of $BRIGHT is created, and the community pool can be replenished without minting.
Gardens DAOs such as BrightDAO have the best tech stack for DAOs, making it an attractive choice for future projects related to BrightID to be governed by BrightDAO.