Summary

• Colosseum wishes to acquire a boost from the protocol that grants them 10% of emissions for the next 80 days (approximately ~11,000 ORE) for $230,000 USDC.
• This USDC would be used to buy and “bury” ORE off spot markets.

Overview

The ORE community has recently been exploring new ways of distributing the token to long term holders. In parallel with these discussions, a number of parties have inquired about available OTC deals to avoid spot market slippage. Matching buyers with sellers for OTC deals is a difficult and time consuming process. Thus, out of the recent discussions about new distribution mechanisms, the idea arose for the protocol to sell boosts directly to interested parties wishing to acquire large quantities of ORE.

For $230,000 USDC, Colosseum would like to purchase a boost that directs 10% of emissions to a Colosseum-controlled account for 80 days, granting them approximately 11,000 ORE. These parameters were calculated to result in Colosseum receiving approximating $230,000 worth of ORE at the current spot market valuation. The USDC funds raised by this sale would be used to buy ORE off spot markets and “bury” it (see appendix for details). The timing and strategy of the buy-and-bury operation will be made public via the ORE discord at least 24h in advance of its execution. The boost acquired in this deal would enforce a natural vesting period on the emitted ORE tokens over the 80 day period of its activation.

The supply allocated to this boost would come from the emissions currently allocated for miners. Staking incentives for liquidity providers would remain unchanged.

Motivation

The benefits to the parties of the deal are as follows:

• Colosseum saves thousands of dollars by avoiding spot market slippage.
• ORE holders benefit from the buy-and-bury operation executed by the protocol.

If passed, this deal would set a precedent for the protocol to engage in future OTC deals with parties interested in acquiring large quantities of ORE. Used in this way, boosts offer a type hybrid vehicle where buyers benefit from avoiding spot market slippage and holders benefit from spot market purchases and removal of circulating supply. This structure, if successful, can potentially unlock capital currently sidelined by the slippage loss of DCA acquisition strategies.

Appendix

In the context of ORE, a “buried” token refers to a token that has been burned but can re-enter circulation via the mining protocol. To avoid confusion, we conventionally reserve the term “burned” for tokens that are minted but intentionally sent to an inaccessible address and irrecoverable. This distinction is made because the emissions rate in the core mining contract is hard coded based on the current supply of the ORE SPL mint account. As long as there are fewer than 5 million tokens minted, the protocol will allow miners to mine new supply. In this way, tokens burned via the SPL burn command will automatically re-enter circulation, and thus we refer to those tokens as “buried” and waiting to be dug up again.