[SCP-32] Addendum to Proposal [SCP-25] the FOX Bond program through OlympusDAO

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 public and open community meetings
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. 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.

This proposal will allow for the committee members to trigger the allocation of additional FOX from the treasury based on the parameters set below from the poll results. This
would be accomplished through a majority vote, and figuring out the additional number
of fox needed by the smart contract for any sort of increase. The point person would
work with the Olympus DAO team to get these numbers and work with the treasury to
send these funds over if they are needed to be allocated.

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.

Poll Results:
Poll 1:

Due to this, I am moving forward with proposing that the committee have the ability to
increase the bond/reward amount to up to 5 times the agreed-upon rate in the original
proposal through a majority vote based on community feedback.

Based on this, the Committee can vote 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 of additional
distribution of FOX from the treasury. This will only be done through a majority vote of
committee.
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%. This is based off
the following poll #3.

Based on this, the Committee can vote on behalf of the community to decrease the
rewards per day down to a total of 14,454 FOX. This will only be done through a
majority vote of the committee.

Poll #4:

Due to the 100% support of the currently listed members, I am moving forward with the
current committee members as Marley ShapeShift, Neverwas, JoshF, Hunt, and
Ron/PTT.

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
Forum Post 5
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 feesExposure to the 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”

VOTE
For: We move this addendum proposal to snapshot for the final voting stage
Against: We do nothing.

  • For: We move this addendum proposal to snapshot for the final voting stage
  • Against: we do nothing

0 voters

2 Likes