Maybe I’m wrong in this assessment, but it appears that Foundation and other entities did not liquidate more XEM reserves for fiat at key times, such as the Coincheck hack, when it became clear the stolen XEM were going to flood the markets.
And again when markets were giving obvious signals, such as the death cross in March 2018.
And then again during Consensys, when XEM temporarily doubled in value, but was still far from achieving golden cross.
Now moving averages are reaching a pinch point, with golden cross likely to visit XEM the first half of this year. Volumes are increasing, and volatility is minimal. LTC, ETH, and other prominent cryptos are in similar situation, with 50 day moving up towards a falling 200 day.
Catapult will be a significant catalyst for XEM price action. And fundamentals are strong throughout the crypto-sphere.
It would be frugal to take market conditions like these into consideration when spending the limited XEM reserves that exist. $1 spent today will effectively be $10 in the future.
Right now is arguably the time that critical NEM entities should be accumulating XEM, to fill their reserves, to sell during bull, so that survival during the next bear cycle in years ahead, isn’t so questionable.
But now we are in a position where XEM reserves need tapped, to accelerate NEM development and adoption, while at the bottom range of a market cycle.
It would be good to have a plan beforehand. EG. if we reach 15 cents, we sell X amount. If we then drop back to 8 cents, we rebuy X amount. If we hit 50 cents, sell Y amount to cover expenses for T time. …
A plan like this is one of the most immediate things that can be implemented to conserve XEM reserves and increase Foundation & Labs sustainability.
After much review, I’ve decided that I can support both proposals, although not conclusively, as there may be details that need cleaned up after the fact.
The plan forward isn’t entirely clear, but I feel that trust can be extended to some degree.
After polling, if proposals are approved by community, I would hope there would be coordination between parties to form a plan of action, establish a joint contingency plan, and further reduce expenditure as realistically as possible, especially in the short term. Even if it means reduced pay until markets recover.
Also, to limit risk and liability, funds probably should not be issued in lump sums post approval. There should be some sort of financial oversight.
How this would be done, I don’t know. Maybe a joint SRO? Self regulation between NF, NV, and NL? Or NF, NL, and core devs? With each party having to sign off before any one entity receives they quarterly allotment?
I’m starting to just throw ideas out there, and these details can be shored up after polling. So I’ll wrap this up by saying: At this point, unless there is some significant reveal I believe I will be voting yes to both proposals, but leave full veto and amendment power to core devs.
Some of the points I’ve made may have already been addressed. There is so much documentation to read, history to recall, and other dynamics - that it’s hard for the average community member to make a fully informed decision.
Things do seem to be improving, though. Thanks to all who have contributed.
