Liquidate DAO Treasury

Liquidate DAO Treasury

TL;DR
Facilitate three stages of redemptions from the DAO Treasury through a burn-to-claim program to redistribute a) existing holdings, b) future revenue from the FMP NFT drop and c) future proceeds from the sale of the Dune Bible.

PROPOSAL
Community member DCF GOD and Spice DAO multisig signer Soby have both suggested the option of redemptions, or burning $SPICE to claim $ETH from the DAO Treasury. Q3 2022 is the most appropriate time to exercise this option since all outstanding Snapshots have been delivered and we are expecting a significant amount of revenue from the FMP NFT drop this summer.

PRECEDENTS
Throughout the 2022 market meltdown there have been multiple precedents of DAOs refunding their holders. High profile recent examples include: Merit Circle DAO voting to buy out Yield Guild Games’s investment; Tribe DAO voting to refund users of the exploited Rari Fuse pools; and Wonderland DAO voting to exercise a quarterly redemption option for their holders all year.

LIQUIDATE DAO TREASURY
Stage I and II will happen in connection with the FMP NFT drop. Stage III will happen in connection with the sale of the Dune Bible.

Stage I - Instead of airdropping free NFTs to $SPICE holders, create a whitelist of DAO members who want to redeem their $SPICE for $ETH that they can use to purchase FMP NFTs in advance of the public sale (currently scheduled for Aug. 15).

Stage II - Sell out the FMP NFT collection in four weeks or less. This new revenue will top up the Spice DAO Treasury with maximum $ETH. Create a whitelist of holders and/or take a snapshot of all $SPICE holders in advance of the FMP NFT public sale so there is no arbitrage opportunity for bad actors to accumulate $SPICE in advance of the redemption period.

Stage III - This is still to be discussed by the community and put up for a vote but the Core Team thought it would be advantageous to put the Dune Bible up for sale in Q4 2023 to capitalize on the $250M Hollywood marketing campaign for Dune: Part II which opens in theatres on November 17, 2023.

DAO members will have the option of dividing their $SPICE tokens into one, two or three tranches to redeem their pro rata share of the treasury.

All steps will be taken to restrict re-entry; provide sybil-resistance; and stop any arbitrage by bad actors.

TIMELINE
Stage I - Aug. 7-14, 2022*

Stage II - September 15, 2022*

Stage III - October 2023*

*Dates subject to change

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Reposting from the Discord:

It was shared in discord (not on this proposal, should be added) that the Phase 1 redemption will be for a maximum of 595 ETH and cover the total SPICE supply. There are a few discrepencies that must be addressed:

  1. Treasury held SPICE (in wallet and as protocol owned liquidity) should be excluded from the supply. Treasury SPICE will not redeem itself for treasury ETH.

  2. There is 695 ETH in treasury currently. Why is there 100 ETH subtracted? Furthermore, there was 1,075 ETH in treasury when the liquidation proposal was posted in April. What happened to >$500k between now and then? The maximum budget is $50k/month. With Charlotte gone and other team members (appearing) to take on smaller roles, that monthly opex should be significantly lower. The DAO series bible was $100k and is the only additional cost during that timeframe. It looks like that 380 ETH mostly went to Coinbase and FTX. Where is that money?

  3. There is some assurance that a Frank Miller collection will sell out like hotcakes. I don’t think that’s a given at all. Is there a more comprehensive strategy in play that hasn’t been circulated? Nothing sells these days

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