I propose that we liquidate the Akita for ETH and look towards the DeFi Treasury Mgmt Workstream to better ascertain how we utilize the underlying capital.
How the ETH is used is not apart of this proposal.
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Proposal Update #2
After some conversations with the Akita community it has become clear that the best path to maximize our ETH outcome is to enable some form of participation with them.
Highlights:
There will be a buy back and burn program that funds the AKITA LBP, for every 1 akita purchased X will be burned(economics still being finalized).
The ETH raised here will be put into the LBP with a time of completion set for 3 months.
Based on our conversations I propose the following:
Option 1:
We split the LP Tokens as follows:
40% to Gitcoin
40% to Akita (streamed over the length of the LBP through Sablier)
20% to a Charity (yet to be chosen) funds ETH raised will be delivered VIA Gitcoin, post sale.
Option 2:
We split the LP Tokens as follows:
80% to Gitcoin
20% to a Charity (yet to be chosen) funds ETH raised will be delivered VIA Gitcoin, post sale.
Option 3:
We don’t split the LP Tokens
We agree to burn more Akita via Sablier by streaming to the 0x000 address Y tokens for each X Akita in the LBP.
Without a serious burn or a share of the ETH being raised, AKITA is most likely to dump their token or fork us out entirely.
Proposal Update #1
After today’s Spaces call to discuss some of the proposals and based on some comments by Alex Van de Sande
With the help of James Hancock we have adjusted my proposal to include a high level overview of the means by which the $AKITA would be liquidated to ETH.
This process will be carried out by the DeFi Treasury Mgmt Workstream for ratification by the multi sig signers.
The what:
A balancer smart pool will be created that is setup to supply the $AKITA:ETH
Better for Gitcoin
- more likely to get more capital for public goods. To liquidate now would get a ceiling of 2 million, done overtime in a less harsh matter is more likely to get more out of those tokens.
- avoids negative PR around dumping a project
Better for the Akita Community
- Day 1 nothing changes
- It is usable liquidity for the duration of the pool.
- Predictable: The Akita community will know predictability what is happening mitigating fears of the unknown. Discouraging a “run on the bank” of akita to get out before Gitcoin does.
Things to work out after the proposal.
- How to handle exposure to the token over the entire period.
- Is it worth withdrawing the pair token, or building a Smart pool with some custom ability to handle this.
- It would be best to avoid complete collapse if Akita went to zero in the middle of the transition.
At a ratio of 0.1%:99.9% ETH/AKITA shifting the weight linearly over time to 99.9%ETH/0.1% AKITA