Summary: Proposal to add an Addendum to SCP-25, creating a committee to be able to make changes on behalf of the DAO under predefined guidelines established within this proposal. The bond committee would have the power to change the max number of bonds as well as the max payout for the duration of the initial bond program, which runs through the end of February 2022.
Motivation: The first couple of days of the FOX bond program has been
wildly successful, and this would allow for us to better capitalize on this high demand moving forward. It is to be able to better capitalize on the demand of these FOX bonds and to acquire more DAO-owned liquidity and do so at an appropriate rate. This would mean being able to allocate more funds from the treasury to the smart contract and increasing the offerings of bonds for a given period of time through the support of this proposal by the community. This will allow for the DAO to better capture and realize the true demand of these bonds and purchase their liquidity through this offering.
Specification: The committee would be formed to implement changes to the number of bonds and rewards issued in the bond program on behalf of the DAO. They voted on parameters of daily reward amounts between 14,454 FOX to 144,530 FOX. This would be accomplished through a majority vote by committee members after hearing out the thoughts of the community during an open meeting. Any increase that is voted on will result in a need to deposit more fox for the tentative period of time that we are looking to increase. The point person from the committee would work with the Olympus DAO team to get these changes made to the FOX bonds and work with the treasury to get any additional funds required distributed to the smart contract. Ron/PTT would like to nominate himself as the point person to work with
communicating and collaborating these agreed-upon changes to the OHM team and working with them to get the bonds updated.
This proposal will allow for the committee members to trigger the allocation of additional FOX from the treasury based on the parameters set through the ideations post.
I would like to additionally propose that these committee team members are
compensated for their time each month. A 400 FOX allocation per month for each committee member and an additional 600 FOX for the point committee member handling the additional work of communicating and coordinating the changes with the Olympus DAO and the treasury. This distribution will occur monthly until the end of February 2022.
Poll Results: See forum post for results.
Poll 1: I propose that the committee have the ability to increase the bond/reward amounts to up to 5 times the agreed-upon rate in the original proposal through a majority vote based on community feedback. This amount would be on behalf of the community to increase the rewards per day up to a total of 144,540 FOX which may result in the need for additional distribution of FOX from the treasury.
Poll 2: We had a 90% vote in favor of the committee having the ability to be able to lower the bond/reward amounts vs the current rates. Due to this, I am moving forward with proposing that the committee have the ability to decrease the bond/reward amount based on the currently approved proposal at as low as the rate of 50% based on Poll #3. Proposal stating that the committee can vote on behalf of the community to decrease the rewards per day down to a total of 14,454 FOX.
Poll #4: I am proposing that the committee be Ron/PTT, JoshF, Neverwas, Marley Shapeshift, and Hunt.
Benefits: The committee being in place would allow for a better reaction to
market conditions for the bonds vs having to go through the lengthy, 10-day
minimum, governance process currently in place. This includes the ability to sell more bonds when the market demands it and lower the number of bonds when the market isn’t looking for them. In addition to the previous benefits of the original proposal.
Drawbacks/Risks: A potential risk is that committee could go rogue and act against the community’s consensus, but due to the fact that we have 2 former ShapeShifters with a combined 12 years of experience working for ShapeShift corporation involved(one which is the engineering workstream leader, the other recently passing a proposal), and three highly involved members with the community and involved with workstreams as well, I think the chances of this are incredibly low. In addition to the previous benefits of the original proposal.
VOTE
For: Create the FOX bond committee to make changes to the FOX bonds through the end of the program in February 2022
Against: We do nothing.
