Hello, Pollo family.
Since April 4, when PDO went up to $70, we have been selling our PDO holdings little by little according to our team rules.
As a result, we now have about $330,000 in the bank.
Will you be disappointed that it is a Dumping Action?
It is very difficult to say what is right and what is wrong in investment behavior.
In this article, I would like to share with you the consistent intentions of the Pollo Team. We hope it will help you in your decision making.
Question: Who will support the buying?
Algorithmic Stablecoins, by their nature, will always have a time when the price falls below $1.
To review the <Document>, when a bond is purchased, the PDO is burned and the PDO’s maximal supply is reduced.
When the maximum supply of PDO is reduced, the expansion of PDO becomes slower.
For example, multiplying 100,000 Maximum Supply by 4.5% results in the issuance of 4,500 new PDOs, but multiplying 90,000 Maximum Supply by 4.5% results in the issuance of only 4,050 new PDOs.
Without buying PDOs and exchanging them for bonds, the Pollo Basic Income protocol would not survive.
This bond mechanism is what we should call the guardian of the algorithmic stablecoin.
Just as we breathe, the algorithmic stablecoin needs to expand and contract repeatedly.
If you continue to breathe in, your lungs will expand fully and it will be very difficult to bring them back up, and it will take a long period of time for them to contract.
Again, someone has to buy the PDO and replace it with a bond during contraction. So, who is this “someone”?
That is, it is you, the family, the community fund (DAO fund) that buys the bonds, and until the DAO takes over, it is the Pollo Team.
But there is no way that the Pollo Team is going to beg you to buy a bond.
You are participating of your own free will, with no one forcing you to do anything. Therefore, you should be able to buy bonds of your own free will.
If the Pollo Team wants to move you, Pollo Basic Income needs to create a mechanism that will make you want to buy bonds.
To put this in a comprehensive way, it means that we all have to overcome. This is not a mental argument. Because if we don’t get back to a dollar, we will all be losers.
Until the DAO is built, we still need a boss, or rather, someone who confidently points the way to the destination. is Pollo Team giving courage to the family?
A poor fund cannot be a fund
It is the fund that accumulates power unobtrusively until a crisis comes, and then relies on it in times of crisis. Unfortunately, if the fund is weak, it is meaningless.
As I wrote in the Roadmap, the Pollo Team is not going to sit around forever acting like an employer or a management team.
Once the DAO takes over the management of the Pollo Team, the Pollo Team will promptly join the DAO as a member, or become an active member in the field, or watch over the activities.
In other words, we will fulfill our duties until that day. We have a responsibility to keep Pollo alive. That’s why a strong fund is essential.
Pollo aims to be a long-lasting protocol by emphasizing the true nature of algorithmic stablecoins. pollo Basic Income is not a protocol that will be ended in a month or two.
The longer it lasts, the longer the sPDO you have earned will be able to receive PDO distributions for many a long time. At the same time, you should factor into your assumptions the possibility that you may not be able to receive PDO distributions below $1.01 from time to time.
The more it survives, the more participants it will have; remember that Pollo has been out for less than a month, bDollar for 4 months, and Pancakeswap for 6 months.
In order to continue for a long time, it is very important to prevent over-expansion, as I mentioned in the beginning. I will tell you this dozens of times in the future. It is a fact that must be ingrained in the bodies of all participants.
Use of Funds
All funds raised from the sale of PDOs will be used for the benefit of the Pollo family. The main use of the funds will be to buy back PDOs, purchase bonds, and pay for development.
If the PDO is below $1.01, no revenue will be generated from the boardroom; if it is below $1.01 for too long, you will not get any PDO from the boardroom for three or four weeks. If that happens, it will be too frustrating a time.
For that reason, it is healthy to go below $1.00 now and then.
Ideally, we would like to be able to break and regain the $1 with all participants, but sometimes, like Bolt and Monster, there may be a “long no return” period.
The funds we have saved will be used in such cases.
In addition to this fund, the community fund is also a powerful supply and demand adjuster. Normally, we sell some of the PDO we get from the boardroom to keep accumulating BUSD, and when the need arises, we buy bonds and so on. For more information on the function of the community fund, please take a look at the last section of the <Document>.
Isn’t too much stability a problem?
“If Pollo Basic Income is too stable, won’t many speculators go to more exciting coin investments and not pay attention to it? As a result, TVL will not rise during the bubble phase, resulting in a huge opportunity loss or losing out to fierce competition?”
I understand that there are some concerns about this.
This is where “PoFi” can play a role to some extent.
PoFi has a maximum supply of 500,000 units and is eligible for Pollo’s Fee revenue sharing, so in terms of specifications, it is by no means inferior to other cryptocurrencies.
PoFi is not currently listed on any exchange, but given the fact that it has room to be listed, there is a good chance that it will catch the attention of speculators. And when you look at the specs of PoFi, it should be somewhat compelling.
“Doesn’t Pollo hate Pump and Dump?” Some may argue that it does.
The reason we didn’t welcome the wild swings in PoFi prices is that we wanted as many people as possible to be on the whitelist before Pollo Basic Income starts.
The idea of “stabilization” is something that algorithmic staple coins are currently playing a role in, and it’s something we’re focusing on.
We also believe that PoFi is the phase where we should aim to maximize the value so that the initial investors can get the maximum profit.
We will control what we can control, and if the price spikes on top of that, that will be a welcome development.
Whether you have PoFi now or are buying it in the future, let’s keep the spirit of DYOR in mind as we move forward. Pollo is with you.