Discussion: Create a VET Validator for the DAO and Use Generated VTHO to Buy Back B3TR. Public idea from TG

General
1

Discussion: Create a VET Validator for the DAO and Use Generated VTHO to Buy Back B3TR. Public idea from TG.

Summary

This proposal suggests that our DAO allocate part of the treasury into VET and run a validator node. The VET will generate VTHO passively, which will then be used to purchase B3TR on the market. The goal is to create a long-term, automated value loop that strengthens the B3TR ecosystem and provides sustainable buyback pressure.

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Why This Matters

Holding a VET Validator provides two key benefits for the DAO and B3TR holders:

  1. Sustainable VTHO Generation

VET naturally produces VTHO over time.

The DAO can use this VTHO to:

Perform scheduled buybacks of B3TR.

Apply deflationary pressure if tokens are burned.

Stabilize demand and support price floor levels.

This approach provides a constant, organic source of buy pressure, without additional fees or taxes.

  1. Stronger DAO Influence in the VeChain Ecosystem

Delegating a significant amount of VET helps the DAO increase network participation.

Raises the DAO’s profile and influence within the VeChain ecosystem.

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How It Works

  1. The DAO allocates a portion of treasury funds into VET.

  2. VET is validated via a DAO-operated or delegated validator node.

  3. All VTHO generated is sent to an automated buyback contract.

  4. The contract purchases B3TR at regular intervals (weekly/monthly).

  5. Purchased B3TR can be:

Added back to the DAO treasury,

Distributed to stakers, or

Burned (if the DAO votes for a deflationary model).

Governance votes will determine buyback frequency, burn percentage, and distribution model.

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Potential Benefits

Creates continuous buy pressure for B3TR.

Adds real external utility to the DAO’s treasury.

Supports long-term price stability.

Strengthens the DAO’s economic engine.

Fully transparent and verifiable on-chain automation.

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Risks & Considerations

Capital Lock-Up: Treasury funds allocated to VET are less liquid and exposed to VET price fluctuations.

Validator Operations: Running a validator requires technical setup and ongoing maintenance.

Market Risk: B3TR buybacks are still subject to market volatility; VTHO production may not always match desired buyback targets.

Governance Complexity: Voting and coordination are required to set buyback intervals, percentages, and distribution methods.

Opportunity Cost: Funds used for VET may have alternative investment opportunities with higher returns.

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Discussion Points

How much of the DAO treasury should be allocated to VET?

Should B3TR bought via VTHO be burned, staked, or added to treasury?

Optimal buyback frequency: weekly, monthly, or flexible based on VTHO generation?

Risk mitigation strategies for VET price fluctuations.

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Conclusion:
Creating a DAO-operated VET Validator is a strategic way to generate passive value for the ecosystem while reinforcing B3TR through automated buybacks. This model aligns treasury management with sustainable tokenomics and long-term growth.

Please drop cons and/or pros. Just a healthy discussion for now

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Nice idea, but to have a validator you need at least 25,000,000.00 VET. If you sell the B3TR treasury to buy VET wouldn’t it destroy the price of B3TR in the first place?

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You are right. It shouldn’t be done when b3tr/bet ratio is bad on b3tr side.

So far from my own notes I have following:

Funding Options for the DAO to Raise 25M VET

  1. Direct Treasury Allocation

  2. Community VET Crowdfund (members deposit VET into a shared validator pool)

  3. Hybrid Treasury + Community Match

  4. Swap Existing DAO Assets (VTHO, stables, B3TR, other holdings → VET)

  5. Generate Revenue Through DAO Services (tools, subscriptions, NFTs, licensing)

  6. Validator Bond Token Sale (token representing claim on validator yield)

  7. DAO Bond Sale (raise funds without minting new tokens)

  8. External Partner Investment (shared validator or revenue-sharing deals)

  9. B3TR Staking Events (stake B3TR to help fund the validator)

  10. Slow Accumulation / DCA Strategy (steady weekly/monthly buys)

  11. Ecosystem Grants or Co-Funding (VeChain Foundation or strategic partners)

  12. Community Events

Some are less doable some are better.

But Id love community to chip in. We shouldn’t be afraid to dream