Under what circumstances does the foundation repurchase (under what circumstances does the foundation collapse)?

Under what circumstances does the foundation repurchase? Editor’s note: This article is from According to Odaily Planet Daily, authorized reposting.

Under what circumstances does the foundation repurchase? What is the foundation repurchase? The foundation has purchased nearly $500,000 worth of Bitcoin and Ethereum and other encrypted assets in the past two years, but as time goes by, the foundation will no longer be able to profit from them. Therefore, it has decided to take measures to repurchase and maintain the use of these funds. If not, the foundation will stop selling its fund shares to investors. Generally speaking, the foundation’s sales of most of the funds it has raised have caused the price to rise (for example, on December 1, 2019), but when the market is in turmoil, it may have an impact on the entire industry.

Repurchase refers to the portion of profits paid by the foundation to new token holders as rewards or partial ownership of the company. This distribution method is the same as other types of stocks such as bonds, real estate, gold, or commodities, and can be considered as a return. Repurchase, also known as “burning,” allows the community to participate, including voting, investment, and development activities. In this form, the foundation regularly reduces or eliminates operating costs and management fees.

The repurchase mechanism is generally adjusted based on the inflation rate (the ratio of issuance to circulation) and the expected change in the foundation’s future income. The foundation will repurchase 1% to 5% annually; in addition, repurchases do not happen immediately. The foundation spends an annual balance of at least 50,000 BTC, and it sends 2% of its average supply to any new shareholders each month. (Note: The return on investment achieved since 2009).

Foundation repurchase refers to a repurchase method approved by the board of directors of the foundation, which is controlled by a new entity called SteemDAO. The foundation uses the resources of its management team for governance decisions. In the process of implementing the repurchase plan, Steemit will serve as an ecosystem to help promote the development of the network while maintaining decentralization.

In order to enable the foundation to continue to develop the relationship between the foundation and its core members, SteemDAO has created a tool specifically for promoting project development. This platform supports the contributions of many early adopters of the project. One of the founders of Steemit, Michael Wernick, established SteemitFoundation.so at the end of 2016 and led the development of Steem 2.0.

Under what circumstances does the foundation collapse

In the past few months, the foundation and advisors have been working hard to address various issues they face. However, the ultimate result of these issues is that many people have left the organization as prices have fallen (or for other reasons), and as the foundation becomes stronger, especially in the cryptocurrency field, more and more people are paying attention to it.

However, this collapse is not driven purely by technical factors, but by some fundamental flaws of the foundation itself. First, their work has not been well developed. Secondly, the foundation acts irresponsibly towards its financial situation because they usually need the management team to ensure smooth operations; finally, the foundation’s balance sheet has suffered heavy losses, resulting in severe financial losses. Why would the foundation do this? In fact, this situation may be different from Bitcoin, Ethereum, and some other tokens, which are used to purchase goods and services. While some projects may offer products, the foundation will not. If necessary, the foundation can provide support to companies that want to earn more returns and participate in the project. Should the foundation really give up all of its core business? Obviously not! In a sense, this is a very obvious and worrisome thing—that the foundation is seeking to reduce costs. The foundation’s sources of income mainly come from donation funds and charitable organizations. According to Chainalysis data, by the end of 2020, over 80% of donations were used for charity. However, by April 2021, this proportion has dropped to about 20%. In fact, despite the decline in the foundation’s income, the average monthly amount received in the first six months of 2019 reached record levels. (Cointelegraph)