###### tags: `Fingerprints DAO` `Governance`
# Proposal for an Ongoing Buyback System

## Context

Given recent below-NAV trading for the $PRINTS token it has become consistently profitable for Fingerprints (or anyone) to purchase its own token.

However, there isn't a pre-established buyback system in place, forcing each buyback to occur in an unpredictable and costly ad-hoc manner.

This proposal seeks to establish objective guidelines to trigger buyback actions from the DAO, resolving many issues currently keeping the market price of $PRINTS below its otherwise fair value, which are detailed in the further reading section.

## Proposal

1. Develop a buyback smart contract that:
a. takes in ETH from Fingerprints' treasury
b. allows for manually setting a buyback price for $PRINTS (and thus Voxelglyphs)
c. exchanges ETH for $PRINTS or Voxelglyphs at the buyback price
d. allow for setting a cap in the amount of ETH that can be withdrawn on a weekly basis
2. Develop a custom UI where users can exchange their $PRINTS or Voxelglyphs at the buyback price
3. Allow buybacks to be made constantly up to the $PRINTS price at the NAV which values the collection through the "highest current bid with tier premiums" method
4. Allow the liquidation of collection pieces to sustain the buyback program should the cash balance fall below **6 months worth of the DAO's monthly expenses** (a threshold currently equal to 144Ξ);

## Further Reading

For more details on the formulation of the proposal, please refer to [this document](https://hackmd.io/@lucaspon/HJB161NRh).