Proposal to add an addendum onto [SCP-25]the FOX bonds program

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… These changes would be within an agreed upon
range voted for by the community and be based upon community feedback solicited at a
public and open community meeting such as the Weekly Governance call.

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 purchasing their liquidity through this offering.

Specification: The specifics would be that this committee would be formed to implement
changes to the Bond Program on behalf of the DAO within predefined parameters
(upper and lower bound polls are below) to change the weekly Bond amounts and
reward amounts. 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 to. 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.

Through current communication in the discord server, we have myself (Ron/PTT),
JoshF, Neverwas, Marley Shapeshift, and Hunt. I would like to nominate myself 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.

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 committee would be in place until the end of the initial bond program, which would
be the end and would require an additional proposal to continue operating.
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 previously stated benefits from the original proposal.
“-Permanent liquidity source
-Increased treasury value from liquidity that also earns trading fees
-Exposure to paired asset in liquidity pool (ETH)
-ShapeShift can stake its LP tokens to provide additional runway for incentive programs”

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 previously stated benefits from the original proposal.
" -Additional FOX emissions via bonds may increase sell pressure.
-Protocol-owned-liquidity can be seen as diluting existing LP holders"
POLLS

How much extra capacity should the committee be able to vote on behalf of the
DAO to increase from the current amounts? (this is not the amount they will increase up
to, but rather the upper thresh hold of being able to increase to)

  • 3x
  • 5x
  • 7x
  • 10x
  • None - I am voting against

0 voters

Should the committee be able to vote on behalf of the DAO to lower the Bonds lower than the current proposed rate for the bonds?

  • Yes
  • No

0 voters

If you voted Yes on the previous poll, what level should the committee be able to
vote the current bond rate down to? This would establish the lower end of the range the
committee could vote on these bonds to.

  • 90% of the current rates
  • 80% of the current rates
  • 75% of the current rates
  • 50% of the current rates
  • I voted no/I do not think they should be able to vote to lower than the original proposal rate

0 voters

Do you support Ron/PTT, Neverwas, Marley ShapeShift, Hunt, and JoshF as the
members of the committee?

  • Yes
  • No

0 voters

VOTE

  • For: We move this addendum to the FOX Bonds proposal forward to Ideation with the poll results guiding the numbers
  • Against: We leave the bonds as is.

0 voters

7 Likes

Thanks for putting the time and effort to delivering this to the community PTT, a great option and pathway to creating greater value and adaptability for the DAO. Also enjoyed the involvement and feed back from many members in DAOing this out. I have cast my votes and look forward to additional feedback and efforts.

3 Likes

Thank you for volunteering to be a part of this, assuming it passes!

4 Likes

thanks for taking this on @PTT!

Hope to see this advance to ideation/proposal asap so we can #raisethecaps

4 Likes

This is great. Thanks. I voted and would fully support this.

3 Likes