MIP-1: Bootstrapping (ACCEPTED)

Authors

  • OPCrypto
  • Flow Ventures LP
  • Maven 11 Capital

Summary
MIP-1 proposes that the DAO’s official token sale will be carried out through a Balancer V2 Liquidity Bootstrapping Pool (BLBP), the proceeds of which will be used for the DAO’s operations.

Abstract
MIP-1 proposes that the DAO’s official token sale will be carried out through a Balancer V2 Liquidity Bootstrapping Pool (BLBP). In this sale, 7,5% of the MC supply (75,000,000 MC tokens) will be put up for sale on the Balancer decentralized exchange through their LBP program. This will be done through both Copperlaunch and the Merit Circle website.

The Balancer sale will be conducted with the following parameters:

  • Pair: MC/USDC
  • Starting weight: 96%/4%
  • End weight: 50%/50%
  • Duration: 72 hours
  • Starting date: November 2th 16:00 PM CEST
  • Ending date: November 5th 16:00 PM CEST

All USDC proceeds from the public sale will be added to the DAO’s treasury. These proceeds will be used for the DAO’s operations in line with its mandate to create value for the DAO.

Up to 15MM USD Uniswap v2 liquidity will be seeded. The DAO will pay back it’s BLBP seeding debt and other outstanding debts that were provided by other parties on behalf of the DAO. To ensure continuity of operations as long as there is no formal token governance in place yet. It will also be authorized to fund ongoing Axie Infinity gaming operations with ETH funding in the amounts that are needed from operations, sell $SLP to different tokens and to fund SAFTs or NFT deals with project partners.

Motivation
To bootstrap the DAO and the DAO’s governance, there needs to be widespread distribution of liquid tokens since future proposals will be approved via the governance forum and voting weight per token.

By distributing the tokens in a permissionless and accessible way, the DAO will become more decentralized and ensure broader participation. The Balancer Liquidity Bootstrapping model is not limited by time, the amount of money raised or the number of people participating ensuring that the DAO allows anyone that is willing to participate has the ability to.

Budget
There is no budget requirement from the DAO. Not currently and not at a future date. The funds will be seeded by Flow Ventures L.P. (incubator) and Merit Circle Ltd.

Process
Should you have any objections to the aforementioned sale please respond to this email within 24 hours. This mail will serve as the pre-governance module. If no serious objections are raised, then the proposal will be ratified by the DAO’s multi-sig wallet.

Rationale
The proposal is a sensible approach that will allow Merit Circle to bootstrap their ecosystem, while utilizing fair launch mechanics in order for fair and transparant token price discovery to take place.

Copyright
Copyright and related rights waived via Creative Commons CC0

1 Like

For transparency purposes we’re adding a bit of context here as to how the vote was conducted. By definition, there was no governance token prior to the token generation event (TGE), therefore MIP-1 has been conducted through an early governance process through chat and email. The proposal has been discussed and reviewed by all stakeholders, after which all stakeholder unanimously gave their consent. See e-mail for context:

"Dear,

If you are receiving this mail, it means that you are officially recognized as one of the Merit Circle DAO members.

In light of there being no tokens and therefore no ability to conduct a governance vote, we, the DAO, are therefore writing to you today as a demonstration of how the DAO will operate moving forward and how it will be truly decentralised. We are here to send you the first ‘Merit Improvement Proposal’ (MIP).

The DAO has been officially deployed by the Company. To avoid any confusion, the Company does not own or control the DAO, the DAO will be under control by the community through voting via the MC token. At the time of writing, there are no tokens in issue (as they are subject to the agreed vesting protocol).

The DAO has therefore created a multi-signature arrangement to ratify community decisions. The members of the multi-sig wallet consist of early stage supporters and community members of the DAO. The Company is not one of these multi-signatory parties. On top of that, it must be clear that none of the multi-signatories are resident in Gibraltar.

The initial multi-signature setup will be formed by the following parties (name - ETH address):

Marco van den Heuvel (Person) - 0x08B308c486D7B9A9f9DCac1A0dc80d9d523A6967

OPCrypto (Fund) - 0x35E6395d2063bD5f12DB62E55707CEe3E549B30f

CitizenX (Fund) - 0x085843dbde124ab8babd558fea60534962628338

Sergei Chan (Person) - 0x15aF80290F04Ba73eDFD912b31452354eB5a4e2A

Maven11 (Fund) - 0x8938892193FddAB15F113459E91e1c4Ab1f052A4

Mark Alexander Borsten (Person) - 0x0ee16877560e2c08A3c0917C7e440ac9e13d0973

DeFiance (Fund) - 0xB7078b28955563AC4CEDD6EF5a8219FeA57efaDd

To ratify a community decision 4 out of 7 signatories need to sign.

However, prior to launching our governance forum and the official proposal mechanisms, we have one important proposal the DAO has to agree on. We will require a majority to ratify decisions and therefore we are mailing you today. "

Closed and moved to Governance - Proposal repository