Is there any chance that with several mayor swings lower from TSLA that we over print TTSLA and any solution for that except that more need to buy it
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Is there any chance that with several mayor swings lower from TSLA that we over print TTSLA and any solution for that except that more need to buy it
TTSLA isn't going to be just frivolously printed into the market
Sustained periods of it trading over the peg will be met with very tiny additions to the market
Imagine for example that TTSLA trades 10% over the peg for a whole week. Over the course of that week, you might see a few shares added to the market programmatically
It also can't bloat beyond the over-collateralization ratio. So there is a ceiling as well as a moving average requirement
Stating these requirements can cause people to front-run, so some obfuscation is needed. Though the verbiage continually says "market expansion into demand without dilution to token holders"
Measuring dilution can be done in TTSLA's over collateralization. So if you always ensure more and more LEO is backing more and more TTSLA, there is no problem with issuing a programmatically larger amount over long timeframes.
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IMHO, the amount of new shares will likely be very tiny and unnoticeable. It is also only done into major strength.
They can do the same thing (ATM issuance) with LSTR and SURGE btw and have yet to do it. They've proven to value not dilution existing holders even if it adds more USD to their balance sheet to buy LEO in the short-term
Everything is done with a long-term, 10 year mindset. Having the ability to ATM shares is about having a 10-year ability to expand the market share as LeoStrategy grows
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