I have read the TIP again and have few more points to raise. If I have missed any details that is already mentioned, please pardon me.
Any project could buy up to 1% of total supply of Magic which means they can get almost 3.5 million Magic at discounted rates. Now, based on above, I could think of below points, please advise if any of them is based on a flawed rational.
1) The project is not buying Magic from the market, it will have no impact on price. In other words, this will not result in an increase in Magic price directly.
2) The project is looking to participate in BW which means summoning, crafting, questing and staking. Most of these activities are beneficial to the community but what if the project dumps ALL of their Magic, up to 3.5 million into Atlas mine/Harvesters and rake in a big portion of mining emissions which they can keep for themselves or share with their community. The community in turn could keep or sell it on the market, This could result in negative price appreciation. Bear in mind since they haven't purchased their Magic from the market they didn't contribute to positive price movement.
Also, existing Stakers will see noticeable reduction in their emissions if this happens.
3) Magic price is currently the strongest motivator for any individual or project to invest in Treasure but if the circulating supply of Magic will keep going up as more and more projects continues buying from DAO rather then market, which is expected as the time goes by, but it has to be countered by increase in Magic price otherwise it could be detrimental to long term price of Magic. Projects must contribute to positive price movements.
4) Will the Magic received by these projects is going to be vested? If Yes, for how long? If No, then why not?
I do understand that having a utility for Magic in projects outside Treasure ecosystem is a huge plus but that utility is subjective and needs to be maintained to make sure the community of other projects continue to invest in Magic otherwise, they will buy it one time, complete their task and dump it.
What if?
We strengthen our liquidity depth through Balancer Crystals so that slippage issue is dwarfed.
We reduce the amount of Magic any project could buy from DAO to let's say maximum 0.5% of total supply and rest they can source from market(They can buy in batches)?
The purchases are staggered and voted on by DAO if the project has proven to add value to the baseline i.e. price of Magic and not simply farming and dumping. For example, if the project wants to buy 2 million Magic from DAO, we allow 25% of buy at a time, the project then implements and proves it's advantage to Treasure ecosystem and then next 25% buy is allowed. If we simply give them 2 million Magic in first go and they fail to add value, there is nothing we could do.
