Treasury diversification proposal
Greetings to all!
Like many of us, I believe that we should diversify some of our governance funds.
Diversifying adds more stability to governance funds and this stability could help the governance, if the community decides so, to support liquidity, or support the community fund to pay current costs and contributors/recruit new contributors during this bear market (non-exhaustive list).
Therefore, I asked @Marty to work on a diversification proposal.
To do so, we could crowdsell some TORN and acquire WETH on governance contract.
To avoid having a negative impact on the TORN price, we could implement a crowdsale.
This consists in setting up a crowdsale with TORN-v-1 sold at a
20% discount with a lock period.
For this, we could use the 1inch limit order protocol.
What is TORN-v-1?
TORN-v-1 is a vesting TORN token that must be transferred to governance. After TORN-v-1 being transferred into the governance contract, 1 TORN-v-1 is directly transformed into 1 TORN, giving access to the staking yield and the vote.
Then, the investor will have to wait for a given period of time (here a period of
365 days is suggested) to be able to unstake.
Advantage of this sale
This is not just a simple sale. Sold TORN will be locked in governance, which means that there is no selling pressure at the moment. It’s a good way to attract strategic partners, so they can help our governance funds to diversify by buying TORN at a discount, while being able to vote and earn yield.
Let’s set up some parameters
Here are the parameters we need your opinion about:
saleAmount - 60_000 TORN, amount of TORN to be sold saleDiscount - 20%, discount from market TORN/ETH price at governance proposal execution moment rateLowLimit - 0.008, minimal TORN/ETH rate for sale (minimum 0.008 ETH for 1 TORN) saleDuration - 14 days vestingDuration - 365 days
Below are polls to see what parameters you would like to see in the governance vote.
- 70,000 TORN
- 60,000 TORN
- 50,000 TORN
- 30 days
- 14 days
- 7 days
- 365 days (12 months)
- 273 days (9 months)
These two points may dissuade potential buyers from purchasing TORN-v-1:
- As the market is not waiting for us, the TORN price could drop during the proposal execution, which could make the proposed price higher than the current market price.
- As governance contract has
canWithdrawAfter[user]parameter which says when an exact user can withdraw his tokens (common date for all user’s tokens), users can’t stake TORN-v-1 on governance if they already have locked tokens on it. Buyers should then be cautious and use a new wallet in that case.
I would like us to discuss this diversification proposal and the different parameters with you before we launch any governance vote
Have a wonderful day Tornadoes!