Credit has greased economic wheels for millennia, and Maker is the world’s
first 100% software-based, community owned and operated credit facility. As
a family of smart contracts operating on Ethereum, the system offers
secured loans of equal cost to anyone in the world. The by-product of loan
generation is dai, a stablecoin collateralized using on-chain rules and
This is NOT the same as an equity buy-back strategy. An EBB strategy is valuable because it increases the Earnings Per Share by reducing the denominator in the EPS equation (ie. the number of ordinary shares). MKR tokens are not an income deriving asset like a dividend paying stock. The value of MKR tokens is purely subjective based on how valuable one “thinks” the governance of the network is. This is not explained at all in this thesis.
Solution to what? I was just confused by the title. Investment thesis tends to indicate a model or valuation of some sort.
I have a basic stock buyback excel model I use with some dumb assumptions. I don't pretend that it's accurate, but it gives me an idea on the multiple of growth possible.