[CMP #16] Wind down of the Volta Club Protocol and Treasury Distribution

Governance [CMP] Community Member Proposal
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[CMP #16] Wind down of the Volta Club Protocol and Treasury Distribution


Objective:

To wind-down the Volta Club protocol and facilitate the equitable distribution of treasury assets
to all Volta token holders.

High Level Details:

This proposal outlines the steps necessary to wind down the protocol and distribute the treasury assets to our community of token holders in a transparent and orderly manner. It is proposed that UwU Lend continue its operations as usual, with Volta token holders receiving their share of the protocol respectively through UwU token streams.

Provide Low Level Details:

  1. Dissolution Timeline
  • Proposal Approval: Upon passing this proposal, a 30-day period will commence.
  • Exchange Portal Setup: Within these 30 days, the team must establish an exchange portal,
    allowing holders to swap their Volta tokens for their corresponding share of the treasury assets.
  1. Treasury Asset Distribution - Vesting Assets
  • UwUStreams: Current UwU streams will remain active to ensure the continued operation of UwULend.
  • UwUTokens: Treasury-held UwU tokens will be vested over a period of four years, with claiming available continuously.
  • Liquid Treasury Assets: Liquidation Process: The liquid portion of the treasury will be liquidated to the fullest extent possible.
  • Redemption Portal: Funds from the liquidated assets will be allocated to a redemption portal, where users can exchange their Volta tokens. The exact assets and amounts available for exchange will be calculated based on the total Volta tokens in circulation and the available liquid treasury value.
  1. Exchange and Redemption Period
  • Exchange Window: Users will have a one-year period to exchange their Volta tokens through the redemption portal.
  • Contract Maintenance: The redemption contract will remain operational throughout this period to facilitate smooth exchanges.
  1. Communication and Support
  • Website and Socials: These platforms will transition to announcement-only mode during the wind-down process. Continuous updates and links to the redemption portal will be provided to keep the community informed.
  • Discord Support: The Discord server will maintain a dedicated support section to address any questions or issues that arise during the wind-down process.
  1. Business and/or Technical Requirements of the Implementation of the Proposal

  • 5.1 Business Requirements

    • Transparent Communication: Regular updates must be provided to ensure all holders are informed about the progress and any changes in the wind-down process.
    • Equitable Distribution: Develop a fair and transparent method for calculating and distributing treasury assets based on token holdings and vesting schedules.
    • Community Engagement: Maintain active channels for support and feedback to address community concerns promptly.

  • 5.2 Technical Requirements

    • Exchange Portal Development: Secure and user-friendly interface for token exchanges.
    • Smart Contract Management: Ensure the redemption contract is secure and operates without vulnerabilities.
    • Asset Liquidation Process: Efficient and secure liquidation of liquid treasury assets to maximize value.
    • Transparent reporting of liquidation outcomes to the community.

  • 5.3 Resource Allocation

    • Team Responsibilities: Team members to oversee the development and maintenance of the exchange portal and redemption mechanisms.
    • Team members to oversee the support channels required for community feedback and technical assistance.
    • Timeline Management: Adherence to the proposed timelines for dissolution, portal setup, and the redemption period to ensure a smooth transition

Since a DAO Discussion is meant to introduce a proposal, not all information may be available at this stage. The discussion should be used to measure the community’s interest in what is being proposed. If the minimum requirements are met, it can be submitted as a Request for Comments.

2 Likes
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It is time to wind down, agree.

I think four years is too long for vesting. Maybe we should have a separate CMP to vote on, if this one gets posted to snapshot.org and passes.

It’s also missing instructions on what to do with the remaining funds after the year passes

1 Like
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Can anyone here please explain what an alternative to the proposed vesting schedule could look like?

Volta token holders have shouldered the losses that came from that platform and are now asked to wait years before they can realize some of the value left in the tokens that were supposed to go up and make a bailout of the platform all worth it.

I’d like to see what a viable alternative could look like before voting though.

4

Regarding the missing details:

  • The Uwulend treasury (~$500k) should be distributed to Volta holders as well (“liquidated to the fullest extent possible”), especially consider Volta took the hit of the exploit with more than $10m while the Uwulend treasury was unscathed. Uwulend will fund development through the already active UWU streams and revenue from the protocol
  • Who will own Uwulend? We should try to auction it before the wind down at a reasonable price (imo, the better option), or alternatively UWU should become similar to a governance token where token holders directly own the platform
  • What will happen to the remaining funds? They must be distributed to those who partecipated in the wind down, proportionally to the amount redeemed. They must not be distributed neither to the Volta team nor to Uwulend.

We can’t lack this many details on such a crucial proposal. I urge holders to vote against this one in hope of a more detailed one. I’ll write it, if necessary.

And as I already stated, vesting is too long, 6-12 months is much more reasonable. We already waited so many years to get any value from Uwulend and all we got is massive losses. We deserve to get at least something right now

1 Like
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I dont find this a good idea, especially that UWUlend has managed to almost pay all bad debt.

We should vote for better management of a change in direction i dont think its a good idea to destroy the people that holded for so many years

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it is winding down but now our prize is that we have to migrate VOLTA to ETH at $200 GAS fee for an undisclosed backing value and no discord or any comms just a kick on the way out right?

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