Success Token Proposal Discussion

Hello. I’ve been working with the UMA team and various folks in the ShapeShift DAO about our on-going conversation about Range Tokens:

discourse-post-upload20231125-65354-f9tclv.pngFinalizing FOX Range Token Specifications

  1. Summary: This proposal is to present defined Range Token parameters for the purpose of gathering community and investor feedback, and ultimately finalizing the Range Token spec so that it can be turned into an actionable vote. 2. Abstract: Proposed settlement on FOX range token with the following specs: 6 month expiry Range of $0.4 - $1.0 Locking 2.5M FOX to raise $825,000 in stables OTC sale 3. Motivation The motivation for treasury diversification with Range Tokens was co…

So far the consensus from those I’ve talked to is that a Success Token is better than a Range Token to put out for a private sale. The goal is the same - to diversify the treasury with stable coins using a method that does not create sell pressure on the FOX token.

The Success Token has a couple advantages over the range token. Mostly it is better for those who want long exposure to FOX. And the types of investors we are targeting we think will be long FOX. The UMA team was the original folks who suggested we consider the Success Token over the Range Token. It also requires less FOX collateralization up front, so good for the DAO to not lock up as much for the timeframe.

For a one page summary of the proposed terms and quick analysis of those terms, please see here: FOX Success Token One Pager 20210922.pdf - Google Drive

The proposed terms are:

Token Name: scFOX-1023

Size: 6,000,000 sc-FOX-1023

Maturity: Oct 01, 2023

Price: 0.34 USDC

Total Value: 2,040,000 USDC

Collateral: 12,000,000 $FOX

I am not looking for firm commitment on these terms exactly. What I’d like at this time is a general thumbs up to go shop these terms around. After feedback from potential Success Token buyers, I will come back with what terms look attractive to them. The idea is we will be looking for a lead investor to set the terms, and then find follow-on investors to come in and complete the traunch. Much like a start-up first finds a lead investor for purchase of an equity position. Once we are nearing agreement with a lead investor, we would return to the community for an official proposal to mint the Success Tokens.

Thanks to for his assistance in reviewing and beginning some initial investor conversations (once we get the go-ahead from the community here). Thanks also to , , and the rest of the UMA team for your help putting this together and the templated one-pager.

Please let us know what you think and what questions there are. Thanks!

I’m in full agreement with moving to the Success Token, as well as the approach you describe here Josh. The approach applies what we learned about trying to design the parameters while also navigating the DAO’s gov process. Seems like a well thought path forward. Thanks for the shout out.

Here is a useful explainer infographic by Eric Bal, Super Uman.

Success tokens are the way to go. ShapeShift is going to make great use of them, showcasing what the suite of products that UMA has created, can do for them and many others looking for that special…edge!. Excellent!


Got a soft commitment from for $200-300k for the Success Token if we fill up the round (currently planned for $2M). They’re super cool too.

This was the first fund that I know of that we’ve run this past. Let’s talk to some more investors and see if we can fill this out while we have momentum!

Anyone who wants to schedule a meeting with a fund, please feel free to grab any open time on my cal: Calendly - Willy ShapeShift

Ahh I’d heard but hadn’t seen this. Great news. Hoping this opens doors for other investors to follow. :+1: