Objective:
Reopening migrations in a form that is helpful to most, while minimizing adverse effects on holders.
Snapshot
[CMP #4] Post Deadline Migration Fund
Note: I am just sponsoring the original proposal.
High Level Details:
Establish a fund dedicated to distributing $VOLTA tokens to current $wMEMO holders who have not yet migrated. $VOLTA will be purchased on the market. Funds required for this initiative will be generated through a 10% tax on the net profit from any successfully sold assets.The fund shall operate through a smart contract, with the initial verification process similar to the one employed during migrations. In the case where a smart contract is not feasible, the process can be done manually.
Provide Low Level Details:
In the following proposal, I will cover all the elements necessary to facilitate the migrations and outline the pros and cons for all parties involved.
Ground rules
- Exchange ratio remains the same: 1:330 $wMEMO to $VOLTA.
- Frst-come, first-served order.
- A new deadline is set until 31.12.2024, with the option to extend depending on holders’ opinions at the time. It’s important to note that the deadline specifically applies to getting whitelisted. The distribution of funds continues until all whitelisted addresses have migrated their $wMEMO.
- 0.25 $VOLTA tax on each migration designed to incentivize the team to perform the migration and, if needed, hire additional staff.
- Eligible wallets are those who were eligible for the first migration Wonderland Token Migration to Volta | by Volta Club DAO | Volta Club Newsletter | Medium.
- Any user who was eligible but sold their $wMEMO as the migration ended is still eligible if they reacquire their $wMEMO.
Fund
The biggest problem with reopening migrations is the dilution of tokens, which will lead to a decrease in backing and affect the profit of current holders. This proposal aims to solve that by raising funds through a small tax levied on the net profit of successful trades. With those funds, $VOLTA tokens can be purchased on the market instead of increasing the total supply.
Let’s use existing assets like $UWU as an example:
If the team sells 1,000,000 $UWU at $20 per token, they will realize a net profit of $17 per token and a total net profit of $17,000,000. A 10% tax would be $1,700,000, which can be used to buy approximately 8,000 $VOLTA tokens at the current market price. When these tokens are given to people who need to migrate, there won’t be any dilution.
The process isn’t meant to be instant but gradual, with more $wMEMO holders successfully migrating with every profit taken. Additionally, any purchases of $VOLTA tokens should follow a similar approach as buybacks— not all at once and announced.
Above backing: If the price of the VOLTA token is above the backing price, the team shouldn’t purchase $VOLTA but should instead use existing tokens held in the treasury. While this increases the total supply, more $VOLTA can be distributed for the same cost without affecting the backing price.
Below backing: $VOLTA tokens should be purchased through the open market.
Human input
By using a smart contract, human input is still required, but it should allow the team to not focus on migrations.
Verification:
For the verification of eligible addresses, the team will reopen the ticket system used in migration but will only verify the address and its balance, whitelisting them by entering the information into the smart contract.
Since, in this case, the user won’t automatically receive their Volta, the ticket system should be improved by the user receiving a direct message (DM) from the bot confirming the successful verification and outlining their next steps. Although this information will be available beforehand, this will help alleviate unnecessary questions.
Communication:
To ensure the maximum number of people are aware of migrations, the team will periodically post updates on ongoing migrations via its social media channels. Additionally, whenever $VOLTA is deposited, announcements should be made. These announcements, while notifying users about the availability of $VOLTA, can also serve as a form of advertisement, highlighting Volta’s profitability.
Smart Contract
A smart contract would need to be written and deployed to enable the following functions, listed in chronological order:
-
Whitelisting eligible addresses and tracking $wMEMO balances:
Once an address is verified as an existing $wMEMO holder, and their balance is determined, the team can include their address along with the corresponding balance. -
$wMEMO Deposit:
Upon whitelisting, users can deposit their $wMEMO. -
$VOLTA Deposit and Distribution:
Whenever the team acquires $VOLTA for migration, it should be deposited, and the addresses should be filled in order until the distribution of $VOLTA is complete.
In a first-come, first-served order, if Wallet A needs 5 VOLTA to complete its migration and Wallet B needs 10, until Wallet A receives its 5 VOLTA, Wallet B receives nothing. Once Wallet A is allocated its 5 VOLTA, the process moves on to Wallet B and then to Wallet C, and so forth. Each wallet is addressed in the order it initiated its migration request. -
$VOLTA Withdrawal:
Any user with $VOLTA can withdraw their balance. -
Opt-Out Option:
Users have the choice to opt out by withdrawing their $wMEMO, but in doing so, they forfeit any right to $VOLTA equivalent to the amount of $wMEMO withdrawn. -
Donate
If anyone is feeling generous, they can contribute their own funds to support the migration process.
This is a basic overview of the main functions needed in the contract, which can be modified to improve the process, such as adding a function to whitelist multiple addresses simultaneously. Additional functions can be included, like a team withdrawal of $VOLTA Tokens. Furthermore, once deployed, the team will need to add a new page on the website where the contract can be interacted with.
Pros and Cons
wMEMO holders:
I understand that you have lost money. Many of you are angry, and there’s a lot of blame directed towards the team for the actions of us holders.There isn’t any point in going back and forth, so this proposal aims to help you recover your funds without negatively impacting holders. While it may not be perfect, and the return of your funds might take time, the intention is that you will eventually receive them, likely appreciating in value. This way, you can truely stake your $wMEMO and relax while the team works towards getting your $VOLTA.
VOLTA holders:
The reality is that you want profit, and giving away volta to someone who does have a claim on it will negatively impact us. This proposal aims to address that by allocating a small portion of the generated profit. This approach ensures that the token continues to increase in value, while the supply decreases.
Team
First and foremost, I would like to express my gratitude for your hard work, as I have witnessed nothing but helpfulness throughout this ordeal. While it was expected that things would get messy, so far, no viable solutions have emerged.
This proposal aims to be that solution. I am interested in understanding the amount of work required to implement such a system so that, if it proves to be substantial, we can explore ways to streamline the process and save TIME, perhaps through the implementation of a more efficient verification system.
Transperancy
A bonus for it being done through a smart contract is that we can know at any moment how much $VOLTA needs to be migrated. Additionally, anyone can verify the addresses submitted, ensuring all addresses are correct.