Since the approval of IQ ATP development, IQ stakers agreed to increased rewards for both shareholders and the IQ team in order to support ongoing platform development.
Following the rollout of the ATP platform, concerns were raised regarding the continuation of this minting structure. These concerns were not related to opposition against fair compensation, but to the persistent selling pressure that stakers are structurally unable to offset through compounding alone.
Previously, selling into the market was often justified by the argument that it represented only a small portion of daily trading volume, commonly referenced as approximately 1%. While opinions on this differed, that framework became an accepted point of reference in discussions around market impact.
Using that same logic, it is reasonable to ask whether buying back a comparable portion of daily trading volume during periods of extreme drawdown could serve as a stabilising mechanism, rather than relying entirely on market forces.
Historically, IQ has traded around a 100M market cap. In crypto markets, volatility is expected. Drawdowns of 30–40% are common, and even declines of 60–80% are generally survivable. Beyond that range, markets typically enter a phase of capitulation, where confidence deteriorates rapidly.
This raises a clear governance question. Is the DAO prepared to define a response in scenarios where the IQ token experiences an 80–85% drawdown from historical levels, potentially through structured buybacks of a limited portion of daily trading volume? Or would any form of intervention only be considered at significantly deeper drawdowns, or not at all?
At present, price action remains under pressure. While initiatives such as hackathons and KRWQ are promising, historical price behaviour suggests that further downside cannot be ruled out. In such conditions, stakers can only prepare responsibly if there is clarity around potential DAO responses.
Defining a response framework near a 15–20M market cap range could help restore confidence among stakers, buyers, and traders. Clear expectations at these levels may also improve external perception on platforms such as CoinMarketCap and CoinGecko, potentially acting as an additional positive catalyst.
Waiting until substantially lower levels risks any response occurring only after the fact, rather than functioning as a stabilising or confidence-building mechanism.