Someone Receives 10 million Ada From treasury, then what?

English
1

He guys,

If someone receives say 10 million ada from the treasury to fund his project then what happens?

  1. He instantly sell and converts to fiat…
  2. He does not sell and gambles on ada price increase which may lead to a disaster

I believe there is 6 million dollar in funds each month soon?

If projects choose option 1 then we will have massive sales pressure each month leading to lower ada prices

If projects choose option 2 then we could have similar results like the ICO craze. They gambled on higher ether prices but were wrong and ran out of money.

We don’t want high sales pressure each month nor don’t we want people gamble with their funding?

(I understand the so called feedback loop where the projects create value and demand when they launch their product. However this is front run by huge sell pressure)

Is there an official rule on how to deal with received funds?

2

According to CMC ADA daily volume is >$600m.

3

So you don’t expect any effect?

What is your opinion about what to do with the received funds? My preference would be option 1 though

4

Well if additional sales per month are around 1% of the normal daily volume, what do you think? :grinning:

What people do with funds they receive is none of my business, and I’m very happy with that… :grin:

1 Like
5

Ok agree to disagree

6

A couple of thoughts…The first is someone would have to have a pretty good plan to get that much money. Chances are they would act responsibly. Also by the time we get to the point I would think the trading volume will increase significantly and there would be demand for the supply. I think if it does become problematic checks and balances can be put in place by the community as well…

In a similar vein. I’ve always wondered if there would be any seasonal impact from people selling off Ada to pay taxes for staking rewards.