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:

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 @scott for his assistance in reviewing and beginning some initial investor conversations (once we get the go-ahead from the community here). Thanks also to @sean, @inalittlewhile, 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!

9 Likes

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.

6 Likes

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

5 Likes