Understanding TrueSight DAO’s Daily Buy-Back Budget: A Dynamic Force for Stability
- Admin TrueSight
- Apr 14
- 4 min read
At TrueSight DAO, we’re building a purpose-driven economy where every decision strengthens our community and drives meaningful change. A cornerstone of this vision is our Daily Buy-Back Budget, an initiative to repurchase TDG tokens from the market, supporting token stability and reinforcing value for our ecosystem. This budget updates every day, reflecting our latest performance and market conditions. In this post, we’ll break down how it works, how each part is calculated, and why it matters to our mission.
What Is the Daily Buy-Back Budget?
The Daily Buy-Back Budget is the amount TrueSight DAO allocates each day to buy back TDG tokens on the LATOKEN exchange. This program, which was voted into effect on-chain by our community to ensure transparency and collective decision-making, helps maintain a stable token price, rewards our community’s commitment, and aligns with our goal of fostering a resilient ecosystem. You can view the governance proposal and voting details here. Displayed among our ecosystem statistics, the budget is a transparent measure of our dedication to building value.
Unlike a fixed amount, the budget changes daily based on a formula that captures our sales activity and market dynamics. Let’s dive into how we calculate it.
The Formula Behind the Budget
The Daily Buy-Back Budget is determined by a clear and balanced formula:
Daily Buy-Back Budget = (Last 30 Days Sales / 30) * min($TDG Trading Price on LATOKEN, 1 - US 1 Month Treasury Bill Rate)
Each component is carefully calculated to ensure the budget reflects TrueSight DAO’s growth and market realities. Here’s how we compute each part:
Last 30 Days Sales:
What It Is: This is the total revenue TrueSight DAO generates over the previous 30 days, capturing the community’s engagement through sales and transactions.
How It’s Calculated: We sum all USD-denominated sales recorded in our off-chain transaction ledger over the past 30 days. For example, our ecosystem statistics show $806.09 in sales, representing the total value of qualifying transactions in that period.
Why It Matters: This figure grounds the budget in our actual performance, ensuring the buy-back program scales with our growth.
Divided by 30:
What It Is: We divide the Last 30 Days Sales by 30 to find the average daily sales.
How It’s Calculated: Using the example of $806.09, we compute $806.09 / 30 ≈ $26.87. This average smooths out daily fluctuations, providing a stable base for the budget.
Why It Matters: The daily average ensures our buy-back budget is sustainable, reflecting consistent activity rather than short-term spikes.
TDG Trading Price on LATOKEN:
What It Is: This is the going market price of TDG tokens in USDT, as quoted on the LATOKEN exchange.
How It’s Calculated: We fetch the latest TDG/USDT ticker data from LATOKEN’s API, specifically the last traded price. Our ecosystem statistics list this as 0.04 USDT/TDG, meaning one TDG token trades for 0.04 USDT.
Why It Matters: The market price anchors the budget to real-world token value, ensuring our buy-backs align with trading conditions.
US 1 Month Treasury Bill Rate:
What It Is: This is the yield on 1-month US Treasury Bills, a standard measure of short-term interest rates.
How It’s Calculated: We retrieve the most recent 1-month Treasury Bill rate from financial data sources, expressed as a decimal (e.g., a 5% rate is 0.05). In the formula, we compute 1 - rate (e.g., 1 - 0.05 = 0.95).
Why It Matters: This rate acts as a benchmark for economic conditions, helping us cap the budget responsibly.
Minimum Function (min):
What It Is: We take the lower of the TDG Trading Price on LATOKEN or 1 - US 1 Month Treasury Bill Rate.
How It’s Calculated: For example, if the TDG price is 0.04 USDT/TDG and the Treasury rate is 0.05, we compare 0.04 to 1 - 0.05 = 0.95. The minimum is 0.04.
Why It Matters: This ensures the budget doesn’t overcommit funds when market or economic conditions suggest restraint, keeping our approach prudent.
Final Calculation:
How It’s Calculated: We multiply the daily sales average by the minimum value. Using our example: $26.87 * 0.04 yields the daily budget in USD.
Why It Matters: This step combines performance (sales) with market context (price or rates), producing a budget that’s both ambitious and grounded.
Each day, we recalculate these components using the latest data—updated sales, fresh TDG prices from LATOKEN, and current Treasury rates—to set a new Daily Buy-Back Budget.
Why Do We Buy Back TDG Tokens?
The Daily Buy-Back Budget is a powerful tool with clear benefits for TrueSight DAO:
Supporting Stability: Repurchasing TDG tokens helps reduce price volatility, fostering confidence among token holders.
Investing in Our Vision: Buy-backs signal our belief in TDG’s long-term potential, reinvesting in the community that drives us.
Scaling with Success: By tying the budget to sales, we ensure the program grows as TrueSight DAO thrives.
Embracing Transparency: We share the budget in our ecosystem statistics, letting everyone see our commitment in action.
Looking Ahead
Because the Daily Buy-Back Budget updates every day, it’s a living reflection of TrueSight DAO’s progress. As our sales grow, TDG’s market price shifts, or Treasury rates fluctuate, the budget adapts to keep us on track. We’re also exploring ways to deepen community input, ensuring this program evolves with your vision.
You can see the latest budget in our ecosystem statistics, a testament to our transparency and shared purpose. It’s not just about numbers—it’s about building trust, step by step.
Join the Movement
Ready to explore more? Dive into TrueSight DAO’s vision and discover how you can contribute to a purpose-driven economy. Have questions about the Daily Buy-Back Budget or TDG? Reach out—we’re here to walk this path together.
Together, we’re shaping a future that matters.
Comments