Objective:
Allow people that have demonstrated a high level of community engagement to migrate their tokens.
Snapshot:
[CMP #5] Active Community Member Migration
Note: I am just sponsoring the original proposal.
High Level Details:
The community has already decided that opening general migrations is not of interest. I think there are still some benefits to migrating people on a case by case basis.
If someone demonstrates that they truly care about this DAO and want to become an active member, through helping on Discord, writing proposals, and voting regularly, it may benefit the DAO to migrate their tokens. It is especially important now as the DAO is reinventing itself in many ways. The more active people are the better.
As someone who missed the migration, I take full responsibility, but would also like to remain an active member and help to see this DAO thrive even more.
This migration also allows the DAO to point to specific ways people can migrate their tokens. Instead of the constant bickering with old wMEMO holders, the DAO can place the burden back on them: “the general migrations have ended but if you become an active community member, your tokens will be migrated”. By placing the burden back on other people it will show how much they care about the DAO vs just getting tokens and dumping. It will also help them build a deeper connection to the DAO before receiving their Volta and incentive them to stick around and see what a great community this is.
Low Level Details:
The choice of when someone has met the criteria of “active” will be determined by a “team member” or a “Bartender” (discord moderators). Only one of these individuals needs to nominate a community member for them to be added for migration.
After a community member is put up for migration, the community member will be manually migrated following the previous manual migration setup within five days. This is in order to keep things organized.
Protections
Team members and bartenders have an incentive to protect the DAO and can be trusted to use discretion to make sure the DAO is not being taken advantage of. Also, if the DAO feels too many tokens or people are being migrated, this can all be shutdown very quickly.
Each team member or bartender can only nominate one individual per quarter (but may choose no one).
Migration Caps
There is also a total cap of 1,500 Volta to be migrated. This is 0.15% of the original tokens allocated for migration. This should help reveal how people act post migration and provide insight into if this approach is effective for bringing in new money or participants.
In addition to a total cap, a formula will be used to calculate how what the wMEMO / Volta conversion rate should be for each person.
The first thing will be taking the minimum between the Backing Price (currently $320) and the current HWM (currently $195). This is the max dollars per Volta that will be converted. We will then take the previous minimum ($195) and divide it by the price of Volta three days before nomination* (currently $130). This is the percentage of the original ratio to use. In no situation should this exceed the original ratio though (1:330).
This ratio will then be multiplied with their wMEMO to identify how much total Volta they will receive.
*This is in order to prevent gaming the token price, like someone dumping the token to quickly drop the price. This will be determined by that day’s (three days before the person was nominated) highest valuation of Volta between the avalanch and ethereum blockchains on uwulend.
Formula:
ratio = min(100%, min(HWM, backingPrice) / currentPrice)
totalVolta = wMEMO * 330 * ratio
Two examples:
persons total wMEMO 0.1
HWM $195
backing price $330
current price $130
max dollars per volta $195
division 150%, but this cannot exceed 100%, so it will be capped at that
total volta 33
persons total wMEMO 0.1
HWM $195
backing price $330
current price $600
max dollars per volta $195
division 32.5%
total volta 10.725
Frequency
There is no defined number or frequency to find active members, but team members and bartenders should make an honest effort to identify these people.
Treasury Volta
Due to CMP3, Volta is used for performance incentives. If the team has any concern that a migration will interfere with a future performance incentive payout then migrations will be paused until this is addressed. Since there is already a large excess of treasury Volta and there will be treasury buybacks, this is probably unlikely to happen, but should be clear that performance fees take priority.
Expiration
In order to prevent this from being a never ending project for the team to process migrations, this program will only be active for 2024 and will expire at midnight on December 31st 2024 (using the last timezone in the world still in 2024). All nominations will stop at this point, but manual migrations may continue until all outstanding ones are processed.
If this proposal is found to be helpful to the DAO, it may be amended to increase the time duration or amount of Volta.