Proposal: BanklessDAO <> Tokemak

This proposal requires us to swap around 30M BANK tokens (3% of total supply) for TOKE, hence giving us a significant exposure to TOKE’s price.

That is correct.

A component of this as well is that the TOKE token will be used to control the deployment of liquidity, so while the price may fluctuate, it will also be used to manage liquidity on AMM’s.

Anyways, I know saying anything is under/ovevalued today is political so if you disagree it’s fine but let’s be aware of the risk here. If I understand it correctly, we are betting 6x the amount of total seasonal funding for all projects on a single project, be it an important one. Hmmmm.

Definitely agree it is a risk, although potential upside as well.

Aside from that, what I like about it is through the token swap we align ourselves to support our mutual success.
Stronger together.

Thanks for clarifying. I do like the ‘stronger together’ approach of closely aligning ourselves with and taking a stake in selected projects.

As above, my main concern is that the whereas BANK’s market cap is 100M, the fully diluted market cap of TOKE is 6.9B - which doesn’t seem massive in comparison to some hot projects in the space rn but is massive by any objective standards, especially if we are taking a long-term view (which in this case we are). It probably wouldn’t be my first choice to invest in from a growth point of view, especially at this level of exposure, tough I understand this is mainly a strategic play for a different reason.

I haven’t looked into where TOKE is deriving its valuation from in much detail though, so happy to leave that up for discussion, if you or others have. If you tell me their P/E ratio is about 30 like Sushi, I will immediately become more bullish. If it’s 3.000, I will become very very cautious.


Moving to archive. Please reply to reopen.