- Eliminate the ‘[borrower incentives] ([Proposal] Growing Borrower Activity with TRU Incentives)’ (rate subsidy) for all future loans.
- Use the remaining 593,010 TRU allocated towards that use for a referral program to bring on new borrowers.
- Pay 39,534 TRU to any borrower that refers another borrower that qualifies for and originates a loan of at least $500,000
Note: At the moment, we have a CRM w/ 56 existing and potential borrowers at varying onboarding stages. These 56 borrowers include borrowers who have already taken out loans, some actively onboarding, some we need to catch up with. While we can’t share that list publicly, we’ll do ‘scouts honor’ with borrowers so that if they introduce us to someone that (a) we have never spoken to (b) have on the list, but aren’t actively onboarding with, we will pay out the referral.
We introduced the ‘borrower incentives ’ as a way to subsidize rates. However, with the introduction of the ‘rate model’ we are seeing lower base rates on average and the ‘borrower incentives’ are now overkill.
Existing borrowers have been the best source of new borrowers. Many of our repeat borrowers today come from introductions or recommendations from earlier borrowers. We’d like to give borrowers even more of a reason to incentive new TrueFi borrowers.
- One of the top priorities right now is to increase utilization in the pools. Bringing on new borrowers is one way to continue doing this.
- If this works and we can bring on 15 new borrowers via this program, we can consider expanding this program.
For: You agree with bullets 1-3 above
Against: You disagree with 1-3 or would like to alter the proposal