Topic 3: Hedging against volatility of SAND price

💬 General
2

Yeah I tried to unravel this at about 1:10:15 in episode 35, I covered the new budget guidelines and requirements but I need help trying to figure out a possible solution. I also put all my notes in this thread here. Here’s what I came up with

“We guarantee 70% of the requested budget in USD at the time the proposal is published for discussion in “SIP Draft”

  • Recommendation: change “SIP Draft” to “SIP Active” instead of Draft to account for SIP changes

  • Disincentivizes high-budget/high-value requests & long-term projects: the more you have, the longer you wait, the greater the price volatility change

  • Recommendation: I’m not sure…I don’t know a good solution right here.

    • Proposals can incur significant risk due to $SAND volatility (Coingecko: 7d Range $0.2533 – $0.2947) → 14.3%

  • “To manage excessive FX volatility, we cap our financial commitment at 110% of the requested budget in USD”

    • For 50K SIP → 110% = 55K (5K buffer) 50K SAND
    • Recommendation: Change to 150% for Tier 1, 115% for Tier 2, 110% for Tier 3
      • 50K → 60K (10K), 200K → 230K (30K), 500K → 550K (50K)