The below is the work of several investors in Wonderland who have come together to work out a roadmap to save Wonderland. Each of us has weighed in with our views from various fields of expertise.
Please share your thoughts as we would like to move to an official proposal as fast as possible - TIME is of the essence!
The frog nation has voted not to wind down Wonderland and doubt exists as to the future directions of the DAO. As a decentralised, autonomous organisation, it is up to leadership to take the direction upon which the frog nation votes. With confusion, FUD and accusations flying, A small collection of frogs believe the best way forward is a fair, time-weighted split which allows frogs to cash out and leave, or stay and continue to help build. Despite a series of catastrophes, we have already achieved so much, under the existing leadership. This should be allowed to play out as long as there are frogs invested in Wonderland. This proposal, if passed, may require further votes on continuing aspects, such as management changes or treasury allocations.
A portion of the treasury, no more than 35% maximum, can be split to offer old HODLers exit liquidity. The frogs who are eligible must:
- Have been holding TIME, MEMO or wMEMO at the time the value dropped below backing
Use a snapshot system to confirm that they wish to cash out and leave Frogs who bought in below backing are not eligible, but will be eligible to remain in the project for all future rewards, not relating to the split.
The treasury allocation is then divided among ALL frogs according to the amount of TIME, MEMO or wMEMO they were holding at the time that the value dropped below backing.
The frogs who have confirmed that they wish to leave will be given their share in a stable coin.
TIME, MEMO or wMEMO that was sold after value dropped below backing will not be included in the split.
Frogs who do not cash out will not be repaid for their losses below backing, but WILL be rewarded for staying - see below:
After The Split (redistribution)
Some of the funds available for exit will not have been claimed by exiting frogs. These funds are returned to the treasury. The treasury will now be holding the TIME, wMEMO and MEMO bought back from exiting frogs. These will be paid to the frogs who remain over a fixed vestment period, as a reward for loyalty to the project despite heavy losses:
Only frogs who held TIME, MEMO or wMEMO at the time value dropped below backing will receive the redistributed tokens
The quantity distributed to each wallet will be determined by the value of TIME, MEMO or wMEMO held in each wallet at the time the value dropped below backing
The vestment period will be paid out in installments, based on the length of the project to-date (or based on the initial purchase of TIME, MEMO or wMEMO from a particular wallet - vote may be required).
Due to confusion and lack of transparency, new multisigs partners and managers must be found and voted upon. New audits must be undertaken and paper-trails followed. Accountability and reliability must be paramount to the success of all Frog Nation projects.
Transparency into whom we are investing with and what their intentions are is key to rebuilding trust.
Existing Management must each, as individuals, write a short manuscript on their activities so far, the strategies they have been working on, and their true, complete strategy for the future of Wonderland. This will serve as a form of “job application” for the new management.
All management should be doxxed so that voters can decide on a verified track record of action. Management who do not wish to be doxxed must step down, but can be engaged as external consultants.
Only doxxed and community vote-approved management may:
- be included on multisigs
- have access to Wonderland code
- Have access to Wonderland assets and funds
There are to be NO MORE “shared” accounts on any communication platform. One manager = one account only.
Security - Audit and anti-fraud:
In the regular financial market, Audit is a pillar that make sure investors have all the information on a specific company before (or during) their investment. In order to move forward and restoring Wonderlands’ brand we must have a full audit. And it must be done periodically, every 3 months.
The audit is divided in different phases and sub-phases, what we need here in Wonderland is the following:
1. An IT Audit it focuses on the underlying IT system which relates to - for example - smart contract, security of private keys, controls and system in play to provide (and prevent) attacks to the funds and to the smart contract. It also makes sure (in the case of wonderland) to expose the amount of limit order in play if we want buybacks. A new IT audit will verify all coding and IT aspects of the project.
2. General Business Audit it focuses on the business model of the project - is it reliable and or sustainable? Such a control would be followed by tests and evidences that the business is sustainable long and short term.
The most important part of a general business audit is that it focuses not only on numbers, but also ensure that the management has the skills and knowledge required to lead the project. A background check must be conducted on the existing management team. These tests would also verify the risk of “management override of controls” (or fraud risk) meaning to verify controls that are in play to prevent the management to, for example, steal money from the treasury or to avoid them from signing on their own agreement for an investment with our funds.
After all the tests in point 1 and 2 are done we need to have an audit report. Where we can see the findings.
Actions that the frog nation can take to mitigate the risks described above:
- Appoint an audit team (or single auditor) - to perform both Audit 1 & 2. The auditor must be selected with a public vote;
- Allocate a minimal part of the treasury to pay for such services which are NOT paid in Frog Nation tokens
- Interact periodically with the Audit team to verify their findings, including a GUI on the Wonderland website with Audit progress reports being visible to the public
- Understand (& vote) how to implement critical parts of the whole process;
- Give precise instruction – via the voting system - to the management to implement critical aspects highlighted by the auditor.
The existing Wonderland acquisitions form a part of our shared portfolio and shall remain so unless voted otherwise by the community. Focus is to be allocated to these side-projects as a part of our continuing strategy.
Future Treasury Usage & Future Rewards
Treasure should be divided in 2 parts:
Stable holdings 30%
Stable farming and yields 20%
Investment fund (50%)
Tokens and coins
Frog Nation VC
These treasury % splits should be voted upon before deciding the exact ratios, thus making use of the wealth of brainpower within the Frog Nation.
Recommendation is to move to a revenue sharing (as mentioned several times and widely supported by Frogs). The revenue distribution would 70% of all profit done in a defined and multi options period of time, where the other 30% would go to the treasure to ensure we get sustainable growth of the treasure and bigger revenue share in the future.
The vision for revenue share would be done through pools, where wMEMO would be locked for a user defined amount of time (multi option, e.g, 1 week, 1 month, 3 month,…) where longer locked time would mean higher allocation of revenue for specific user.
Pools would refer to specify investment type, project or overall. Frogs could choose to specifically invest in:
Particular VC investment
Farming and Protocol
Farming and VC
VC and Protocol
In order to mitigate market crashes, the protocol will have the ability to remove and break LPs and pooled / staked tokens when certain trigger conditions are met. If this happens, a 24—hour vote will be opened to decide where to redistribute those funds for safer investments.
When investment opportunities are identified by management, a 24-hour vote must be opened to the Frog Nation before any investment is made. Frogs are not required to vote, but if they wish to have a say in the management of the treasury, the voting mechanism is their opportunity to do so.