Proposal 8 - HackMD

# Proposal 8 Drafted with support from: Ben Hawkins and 0xNallok ## Responsible Parties - Ben Hawkins (`7GmjpH2hpj3A5d6f1LTjXUAy8MR8FDTvZcPY79RDRDhq`) - Squads Multi-sig (4/6) `Meta-DAO Executor` (`FpMnruqVCxh3o2oBFZ9uSQmshiyfMqzeJ3YfNQfP9tHy`) - The Meta-DAO (`metaX99LHn3A7Gr7VAcCfXhpfocvpMpqQ3eyp3PGUUq`) - The Markets ## Overview - Ben Hawkins (`7GmjpH2hpj3A5d6f1LTjXUAy8MR8FDTvZcPY79RDRDhq`) wishes to acquire up to 500 META (`METADDFL6wWMWEoKTFJwcThTbUmtarRJZjRpzUvkxhr`) from The Meta-DAO Treausry (`ADCCEAbH8eixGj5t73vb4sKecSKo7ndgDSuWGvER4Loy`). - The price per META shall be determined upon passing of the proposal and the greater of the TWAP price of the pass market and $200. $$ppM = max(twapPass, 200)$$ - A total of $100,000 USDC (`EPjFWdd5AufqSSqeM2qN1xzybapC8G4wEGGkZwyTDt1v`) will be committed by Ben Hawkins - The amount of META shall be determined as the $100,000 USDC funds sent divided by the price determined above. $$amountMETA = 100,000/ppM$$ - The Meta-DAO will transfer 20% of the final allocation of META to Ben Hawkin's wallet immediately and place 80% of the final allocation of META into a 12 month, linear vest Streamflow program. - The amount of $100,000 USDC shall be used to create a 50/50 AMM pool with 1% fee matched in META by The Meta-DAO. - Ben will also send $2,000 USDC in addition to compensate members of The Meta-DAO Executor. - Any META not sent or utilized for liquidity provisioning shall be returned to The Meta-DAO. ## Background The current liquidity within the META markets is proving insufficient to support the demand. This proposal addresses this issue by providing immediate liquidity in a sizable amount which should at least provide a temporary backstop to allow proposals to be constructed addressing the entire demand. ## Implementation The proposal contains the instruction for a transfer 1,000 META into a multisignature wallet `FpMnruqVCxh3o2oBFZ9uSQmshiyfMqzeJ3YfNQfP9tHy` with a 4/6 threshold of which the following parties are be members: - Proph3t (`65U66fcYuNfqN12vzateJhZ4bgDuxFWN9gMwraeQKByg`) - Dean (`3PKhzE9wuEkGPHHu2sNCvG86xNtDJduAcyBPXpE6cSNt`) - 0xNallok (`4LpE9Lxqb4jYYh8jA8oDhsGDKPNBNkcoXobbAJTa3pWw`) - Durden (`91NjPFfJxQw2FRJvyuQUQsdh9mBGPeGPuNavt7nMLTQj`) - Blockchainfixesthis (`HKcXZAkT4ec2VBzGNxazWhpV7BTk3frQpSufpaNoho3D`) - Rar3 (`BYeFEm6n4rUDpyHzDjt5JF8okGpoZUdS2Y4jJM2dJCm4`) The multisig members instructions are as follows: - Accept the full USDC amount of $100,000 from Ben Hawkins into the Multi-sig upon launch of proposal If the proposal passes: - Accept receipt of META into the Multi-sig as defined by on chain instruction - Determine and publish the price per META according to the definition above - Confirmation from two parties within The Meta-DAO that the balances exist and are in full - Take `$100,000 / ppM` and determine final allocation quantity of META - Transfer 20% of the final allocation of META to Ben's address `7GmjpH2hpj3A5d6f1LTjXUAy8MR8FDTvZcPY79RDRDhq` - Configure a 12 month Streamflow vesting program with a linear vest - Transfer 80% of the final allocation of META into the Streamflow program - Create a 50/50 Meteora LP 1% Volatile Pool META-USDC allocating at ratios determined and able to be executed via Multi-sig - Return any remaining META to the DAO treasury - Make USDC payment to each Multi-sig members If the proposal fails: - Make USDC payment to each Multi-sig member. - Return 100,000 USDC to `7GmjpH2hpj3A5d6f1LTjXUAy8MR8FDTvZcPY79RDRDhq` ## Risks The price is extremely volatile and given the variance there is an unknown amount at the time of proposal launching which would be introduced into circulation. This will be impactful to the price. Given there are other proposals with active markets, the capacity for accurate pricing and participation of this proposal is unknown. This is an experiment and largely contains unknown unknowns, IT CONTAINS EXTREME RISK. ## Result The proposal evaluates a net increase in value to META by bringing additional liquidity into the ecosystem. This should also improve the capacity for proposal functionality. The expected increase in value to META is ~15% given the fact that the amounts are yet to be determined, but an increase in circulating supply by ~2-7%. | Details | | |---|---| | META Spot Price 2024-02-18 20:20 UTC | $695.92 | | META Circulating Supply 2024-02-18 20:20 UTC | 14,530 | | Offer Price | ≥ $200 | | Offer META | ≤ 500 | | Offer USDC | $100,000 | | META Transfer to Circulation | {TBD} % | | New META Circulating Supply | {TBD} | Here are some post-money valuations at different prices as well total increase in circulation: | Price/META | Mcap | Liquidity % of Circulation | Acquisition/LP Circulation | Total | |--|--|--|--|--| | $200 | $3.6M | 6.3% | 500 META/500 META ~3.4% | 1000 META ~6.8% | | $350 | $5.1M | 4.8% | 285 META/285 META ~1.9% | 570 META ~3.8% | | $700 | $10.2M | 3.8% | 142 META/142 META ~0.9% | 284 META ~1.8% | ## References - [Proposal 7](https://hackmd.io/@0xNallok/Hy2WJ46op) - [Proposal 6](https://gist.github.com/Benhawkins18/927177850e27a6254678059c99d98209) - [Discord](https://discord.gg/metadao)