MetaDAO has officially enabled proposal 10, a Dutch auction that attempts to raise funds for the DAO. The first auction price is set 50% above the spot price and adjusted down 5% every 24 hours. As a first price, 100 META from the DAO was listed at a price of $1,350 vs current spot price of ~$835.
What’s the reason for doing a raise this way? Simply, there is very little liquidity in the market and prices are easily moved. The proceeds will then be used to increase on-chain liquidity at the spot price. The DAO aims to sell 1,000 META throughout this process and the entire proposal can be seen here: https://hackmd.io/@Durden/Increase-META-Liquidity
It is unclear if there will be strong demand here or not. Meta got publicity when Pantera proposed to buy at a price of $100 a month ago. Ironically, Pantera’s signalling added legitimacy to the project and caused the price to go >$1,000 and their proposal to buy denied.
As for the project itself, Meta is based off of the idea “futarchy”. Essentially, all decisions by the DAO are done through markets. If members believe a proposal will increase the price of META, they will pass it. If not, it will fail. MetaDAO got >100 submissions for their Solana Scribes event and Helius released a very good post breaking it down here: https://www.helius.dev/blog/futarchy-and-governance-prediction-markets-meet-daos-on-solana#an-introduction-to-futarchy
MetaDAO is one of the wildest/riskiest/unknown projects out there right now and has captured the attention of many builders in the Solana community. There’s a high chance this fails, but it’s intellectually stimulating and a good change of pace from the memecoin & governance token farming meta.
disclosure: I own META
