Daniele Sesta’s role at Wonderland has never been clearly defined. As a protocol claiming to be a DAO, having clear and defined responsibilities for team members is critical.
This has never been clearer with the recent questionable usage of Wonderland’s treasury during the UST/LUNA collapse. The lack of coordination and communication has caused the community to question Daniele’s scope of power at Wonderland. Various community members pointed out that Daniele’s role and vested interest in other protocols, namely Abracadabra, have been highlighted as a conflict of interest. Therefore, they believe Daniele should not have the power over Wonderland’s treasury as he appears to do so at this time given that he is no longer interim treasury manager.
Hopefully, this DAO Discussion will lead to a clearly defined role and responsibilities for Daniele Sesta.
There is an obvious conflict of interest that needs to be addressed. As of this writing, Daniele owns no amount of WMemo and about 4B ~ Spell Tokens worth apx. $5mm is currently being used as collateral on Abracadabra:
Source: Apeboard.finance; Dani’s Personal Wallet
However, it is worth noting that Daniele sent his wMEMO to the treasury before the Rage Quit period. This may not mean that Daniele has no interest in Wonderland succeeding. However, it helps create the perception that he does not.
There have also been various instances where Daniele has shown clear bias towards improving and focusing on Abracadabra, including when asked how he plans to help Wonderland recover:
This indicates that Daniele’s priority lies in increasing Spell token price and making Abracadabra a success. The events that happened this past week seem to reinforce this bias.
From May 5 to May 13, LUNA lost 99.9% of its value, leaving UST to be worth 0.17 cents as of this writing. This complete collapse of a stablecoin and entire ecosystem left Abracadabra with the potential to be stranded with millions of bad debt as UST lost its peg.
Daniele, with the help of an unknown mutisigner, used Wonderland’s treasury to save Abracadabra from potentially devastating debt to liquidate and purchase millions of UST tokens that were now being bag held by Wonderland instead of Abracadabra.
Skyhopper, our elected Treasury Manager, was not informed of Dani’s unilateral usage of Wonderland’s treasury (he was asleep) and had to arbitrage the trade.
Overall, the liquidation and arbitrage of UST resulted in a loss of 9 million USD for Wonderland.
To be fair, although this could have turned out profitable for Wonderland, it seems to have been a secondary motive as it was done without informing the Treasury Manager. Profiting off the UST / LUNA collapse was not a priority for Wonderland. However, reducing the debt for Abracadabra most likely was.
The use of Wonderland’s treasury funds was a GAMBLE that placed 25% of the treasury at risk without the Treasury Manager’s consent—showing that Daniele makes unilateral decisions to do what he wants with Wonderland’s funds.
Wonderland was used by Dani to bail Abracadabra without permission and took a hit of $9mm that could’ve been a lot worse if it weren’t for the active management of our elected Treasury Manager, Skyhopper.
The topic of a merger is one that left a sour taste in the mouth of a lot of frogs. Daniele has indicated multiple times that he believes a merger under Abracadabra is what’s best for everyone.
While there are currently no details on this merger and anything we could say would be speculation, his vision of merging under Abracadabra re-enforces the sentiments of biases and conflict of interest against Wonderland.
Daniele’s primary motivation and vested interest seems to be with Abracadabra. This presents a massive conflict of interest with Daniele’s current powers at Wonderland, as we have witnessed with the recent improper treasury usage during the Terra Luna collapse.
Since Daniele is one of Wonderland’s founders, acting on our behalf makes total sense. However, the treasury is a core component of Wonderland and playing with it needs higher accountability.
As co-founder and Chief Strategist of Wonderland, Daniele plays an important part in the protocol. Many members of the community look for his guidance. Daniele has indicated that his vision of the ecosystem would be to merge under one protocol, but until we cross that bridge, each protocol should do what is beneficial to them.
That being said, in the spirit of becoming more organized and act like a real corporation, the following responsibilities are proposed:
Seek out investment opportunities for Wonderland and present them to the community and/or Treasury Manager.
Continue as a member of Wonderland’s multisig.
Be meaningfully involved in the Wonderland community as the face of the project.
Promote and coordinate potential collaborations within the Frog Nation ecosystem beneficial to Wonderland.
Ensure/delegate to an elected official the responsibility the implementation of passed Wonderland Improvement Proposal
Ensure/delegate to an elected official the responsibility to ensure plans and strategies are communicated to the community.
Properly disclose and communicate potential conflicts of interest to the team and community to ensure that decisions are not made at Wonderland’s expense.
[Other potential duties as discussed by the community]
While it is reasonable to believe Daniele may need to make certain use of the treasury, these should not be made without the Treasury Manager’s consent.
In case of a disagreement from the Treasury Manager, if no compromise can be reached, further consultation should be done with the rest of the team members (if required) to ensure that the involved parties are not being unreasonable.
When judged necessary, the situation may be brought in front of the DAO for final decision. However, any use of funds overruling the Treasury Manager’s objection should be reported to the DAO as soon as possible to implement corrective measures if required.
- Yes, implement these roles, limitations, and responsibilities for Daniele Sesta as Co-Founder & Chief Strategist
- No, Don’t implelment these roles, limitations and responsibilities for Daniele Sesta