" 1. Proposal 1: Replace two multi-signature signers
- DeFiance Capital to be replaced by Flow Ventures LP
- OPCrypto to be replaced by Mechanism Capital.
- Change the key of CitizenX from:
0x085843dbde124ab8babd558fea60534962628338
To:
0x7fA32E98C5f3C8594DE1785e23905FB0C74bcCd7
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Proposal 2: Seed all current and future multisig wallets (as and when appointed) with 0,5 ETH signing fees. The last signer pays a fee in Ether, by seeding these wallets with ETH will have more signatories that are able to be last signer and with it increase the flexibility of the 4-7 multisig. There are currently 7 signatories, therefore the current outlay would be equal to 3,5 ETH total. These will be bought with USDC at market price. It should be noted that the DAO may purchase more ETH to fund existing signatories or newly appointed signatories as and when the multi signatory arrangement changes.
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Proposal 3: Mandate for early stakeholders with investment expertise and good reputations to deploy up to 100 million in USDC out of the MainDAO’s treasury to utilize for DAO operations. The following parties will form a discretionary investment committee to make investment decisions:
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Flow Ventures LP
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OPCrypto
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Maven11
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DeFiance Capital
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Mechanism Capital
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Sergei Chan
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CitizenX
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Merit Core contributors
The DAO’s investment operations include and are limited to:
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NFT investments
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Token investments
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Crypto assets (including crypto assets in yielding positions)
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USD stablecoins (including stablecoins in yielding positions)
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Liquidity Provision token positions such as (but not limited to:) Uniswap or Sushiswap LP tokens
For SAFT or NFT investments there is no need for an additional proposal if the individual deal amount is below 1% of the total treasury value. In case the investment exceeds this, a governance proposal is required.
The committee plans to put 10% in crypto positions (with a maximum of 20%). This will mostly be held in Ether and BTC. The function of the crypto position is not to make a specific bet on a crypto asset. Rather it is to diversify the current cash position that is currently 100% made up of fiat currency. Fiat that currently has a significant inflation rate, meaning a negative APR. The committee believes BTC and ETH are better long term cash positions. A mix of BTC, ETH and USDC is preferable over just Fiat. In the committee’s opinion. It makes sense for a crypto-native DAO to have an operational cash balance that is made up from a mix of “harder” crypto assets. This also hedges against space growth relative to the DAO.
Additionally this hedges against sector growth. If the space grows, by definition more $ is entering the space and at the same time existing protocols with crypto on their balance sheet benefit from increased treasury value. The DAO would become less competitive to other DAO’s in terms of absolute treasury value and, moreover, this could lead to extra sector specific inflation. Increased prices for people and goods within the crypto sector.
The committee further believes it’s prudent to put some fiat in yield farms that the committee deems to have good risk/rewards. As per safeguards no more than 5% can be put in a single position and no more than 20% in total can be put into yielding stable coin positions. This will create additional cash flow for the protocol while the funds sit idle before they can be deployed in P2E and gaming investments.
In general the committee believes the DAO will benefit from a robust and diversified treasury.
The newly formed investment committee will operate a 2-3 multisig wallet. The signatories to this wallet are a combination of the entities detailed above. The 2 out of 3 multisig wallet has 3 cold-storage signers. The operation 2-3 multisig wallet is authorized to use single sign cold-storage wallet for deployment. The single signer cold-storage wallets that are used can only be owned by any of the above listed parties. The single signature wallets are not used for long term holding or storage of asset, only for deployment. Not all chains have multi-signature wallet support yet, on chains where there is no support, the assets will be held for longerterm holding or storage purposes, until there is a multi-signature solution.
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Grant the MainDAO authority to fund ongoing Axie Infinity operations of the scholarship vaults and the breeding vaults with ETH.
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Authorize buybacks of $MC tokens with $SLP (The reward token used in the Axie Inifinity gaming ecosystem) profits from Axie Infinity operations at market prices, conducted through the Uniswap V2 pool. It should be noted that until new governance proposals are accepted that specify a different use of funds, all (100%) profits from operations will be used to buy back $MC tokens for the DAO, to be held in the DAO treasury.
The above mandate has set specific rules to seek to ensure that the mandate is not breached and therefore prevent any unforeseen circumstances. These specific rules will be in place until a new proposal that overwrites any of the safeguards is voted in.
- Up to $5 million USD in asset value can be deployed in single signer cold-storage wallets. These are wallets that are earmarked as DAO wallets. Right after deployment, the assets will be transferred back to the MainDAO 4-7 multi-sig or the MainDAO operational 2-3 multi-sig.
- All used single wallet and operational multisig wallets will be transparently published in a live document.
- All used wallets are cold-storage and owned by stakeholders that are also in the 4 out of 7 multisig.
- A maximum of 20% of treasury value can be put in Crypto assets (this only applies to the initial amount, not to an amount after potential price appreciation)
- A maximum of 20% of treasury value can be put in, crypto or stablecoin yield farms (this only applies to the initial amount, not to an amount after potential price appreciation)
- A maximum of 5% of treasury value can be put in a single position (this only applies to the initial amount, not to an amount after potential price appreciation)
- Each multisigner should disclose his/her interest or position in any project in which Merit Circle DAO invests in. The disclosure needs to be on the public governance forum as a reply to the specific proposal (unless disclosed in the actual proposal). This only applies to assets / projects that have a marketcap under 1B $ valuation. Projects with a higher valuation are deemed efficient and deep markets where any impact the DAO would have is minimal."
And:
“**This proposal will be open for discussion until the 13th of November 2PM UTC”
To be added into new proposal^