This is a great idea! Otherwise we are locking ourselves into an exchange rate that will not favor us in the end as we expect the token price to drop from inflation. I’m shocked this hasnt been proposed anywhere before. The exchange rate to give us the value of the current price of STX on the market, not alex. Although we are paid in ALEX as the compensation. The OP did say the exchange rate is based on vote however so maybe u over looked that detail. Bring it up in the AMA
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Ya a fixed exchange rate doesnt make sense, theres gonna be a LOT of volatility. Might not make the AMA. Hoping kyo makes an edit to the proposal before vote starts
Token inflation wont be a factor and can be mitigated if the exchange rate changes with the drop in value. Therefore stabalizing our payout to that of the value of Stx. Eg. Say 1 stx = 15 alex, if alex price drops by half, well get double the payout so this holds true, 1 stx = 30 alex. This won’t affect the emmssions and therefore dilution too much as it would come from alex labs personal allocation that is already on the market
I see most of us agree with this proposal except the STX/ALEX rate. Let’s raise your voice in the AMA today
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We referenced this proposal in this 𝕏 post: x.com (We even cited it in the post itself)
Scroll down and find this section: Proposal Category 3: Fairly Distribute the Remaining STX in the Vault to Cover LP Loss
Thanks for sharing it, @khoanguyen.btc !
Increase compensation and liquidity ratio needed
- The current 150k STX compensation offer is inadequate and fails to address the impact on affected users
- Propose a more equitable 50-50 split:
- 50% of remaining resources (150k STX and $7M) allocated to direct compensation
- 50% allocated to adding liquidity
- Alternatively, consider a 75-25 or 80-20 split:
- Higher percentage dedicated to direct compensation
- Demonstrates stronger commitment to prioritizing affected community
- This is an opportunity to show leadership and genuine concern for the community
- Striking the right balance between compensation and liquidity provision is crucial
By having a fairer compensation-to-liquidity ratio, this will provide meaningful financial relief to those impacted. I urge everyone to carefully consider these more equitable options.
@3daura @Stoicstrong @safonamoto @Alexlover
@bitxia @HYL @cryptographic @rozar.btc @superhiro @birdsong
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I got limited in the Telegram channel for pointing out that Team funds need to be added to the Program. They’ve ignored this feedback throughout, either out of malice or because all their tokens are also stuck in the LPs. Until we know which it is, there is little of substance to vote on, because they rely on incomplete information.
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Why are u not conisdering the edits here?! This has been updated
Hey @3daura , we will take a look at it now. Thanks for letting us know!
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Josh, please clarify if the exisiting propsal choice 5, allows us to exchange our compensated ALEX BACK into STX at the same exchange rate. This is a huge concern for the community and under the assumption this is the case.
I would clarification on the 137M (returned ALEX) and 135.5M (compensation ALEX), will both of these amounts be locked for 32 cycles or just the 135.5 compensation ALEX? The way I’m reading it is, 137M and 135.5M combined will be locked for 32 cycles. Which is probably needed to ease selling pressure if this becomes a race to see who can click a mouse faster. Please advise, thanks.
I’ve been with the project for 2.5 years and despite everything that has happened, I still want to support the project and see it succeed.
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[choice 5] urgent community concerns – exchange rate clarification
As Choice 5 has been gaining traction from community votes, serious conversation regarding the much-needed clarification on specific aspects of the proposal have come to surface. One of which is the exchange rate.
EXCHANGE RATE PROBLEM:
The community is under the impression that the exchange rate, as presented in Choice 5, is bidirectional. But as described in its current on the POLL voting site, does NOT specify whether you can exchange ALEX BACK to STX at the SAME fixed rate of 10 ALEX per STX AFTER receiving the ALEX tokens as compensation. This exchange rate is ONLY mentioned for the initial compensation calculation. Clarification is needed on this matter to ensure an informed voting.
Fairness Concerns:
- Value Risk: The actual value that LP holders can realize by converting ALEX back to STX might be lower if the market rate differs from the fixed rate issuance (1:10), exposing them to market risk and potential value loss. Due to the nature of the incident, it is expected that the market rate will not be in favor of the original holders, as significant sell pressure and compensation emissions (liquidity injection) will cause downward price action and market dilution.
- Asymmetry in Compensation:
- Foundation’s Advantage: By compensating at a fixed rate, the foundation transfers the risk of market fluctuations and token value loss to the LP holders. This is AGAINST the argument to have the Foundation take more accountability for the mishap.
- LP Holders’ Disadvantage: LP holders might not get the full value of their lost STX if ALEX’s market value is lower than the fixed rate suggests. They have to accept market risks and potential losses upon conversion, which is expected to occur, at least in the short-term. There are no protections in place to safeguard holders against this.
Solutions:
- Provide a mechanism for a bidirectional fixed-exchange rate (1:10) post-compensation to prevent value discrepancies - allows holders to trade their ALEX for STX at the same ratio they were compensated with.
- Modify the ratio of the fixed exchange rate to accommodate for expected ALEX token value loss, perhaps with a community vote as originally proposed
- Use a bidirectional MARKET-exchange rate instead
Conclusion:
Without a guaranteed mechanism to exchange ALEX for STX at the same fixed rate, LP holders bear the risk of unfavorable, downward, market fluctuations, which can lead to unfair outcomes. Implementing a fixed-rate redemption option (ALEX to STX at 10:1) or opting for a bidirectional market-rate compensation plan instead, can address these fairness concerns and ensure LP holders are made whole as intended.
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Please see my response here. The value of alex will not matter if the same exchange rate is honored to swap ALEX back into STX.
Lol youd think it would be simple for them to answer a simple question rather than us having to come up with these elaborate solutions. Its causing the community much headache
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Looks like there are more details added to the original proposal that need to be addressed by the team. Check out @fightingfantom
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Vote for the details:
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@Josh_ALEX please forward this to the team
Thanks for sharing this, don’t worry, we read all gov posts too. Not just TG, Discord.
@Josh_ALEX This is reassuring. A bigger concern is with the initial distribution of assets. We werent aware of the teams funds when thes propsals were formulated. Since then @khoanguyen.btc has put up a vote to receive $7m stx back from the usdc available. This would nearly make us 75% whole upfront. There is a poll from fhe communuty who overwhelming agreed to this. Please confirm the team is aware of this dispute to the inital propsal. All we are asking is that these items are being addressed on the back end. Thanks josh
Thanks for sharing this!
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