The scope of this proposal is to turn Wonderland into an organization that serves the vast majority of its token holders. To improve security, ensure stability, and allow flexibility, by creating a team of officers empowered to handle day-to-day operations with less friction.
The purpose of this proposal is to take into consideration legal advice and maintain stability and security. To minimize the threat of a problematic governance affecting day-to-day operations by empowering an elected team to make decisions with less roadblocks and friction. To assure flexibility and responsiveness in a space where these traits are paramount.
- I would like to see a formal proposal
- I am not interested in seeing more
The following proposal was crafted after a series of in-depth conversations with legal firms around the world, which led to the realization that we have failed our holders by losing focus on the main objective of the protocol, profits for holders.
As a result of Wonderland’s abstract management, there is a high risk of malicious actors carrying out Governance Attacks in an effort to totalize the system. Protocol stability is affected directly by this, since these actors may accumulate voting power for a brief period of time and promote their own agendas in specific aspects of the Protocol’s day-to-day operations.
Moreover, Wonderland has been subjected to long and inefficient governance procedures, which are susceptible to manipulation. Though we have always focused on the community and how to serve it better, unintentionally we have developed a system that focuses and abides by the loudest people, not the clear majority of silent “stake and chill” token holders. A long and time-consuming governance system, that promotes mob participation rather than a power by shares or delegation in Wonderland, which is host to constant conflict and disagreement between people who, estimated on votes, collectively hold a very small percentage less than 0.1% of the shares.
Furthermore, our Treasury cannot respond quickly to the fast changing market conditions, which is essential in this industry, thereby reducing our performance and putting investor value at risk.
The structure of a DAO, such as ours, involves smart contracts and a collective decision making process that is independent of human control. To allow users to update its rules in any way, from technology upgrades to the slightest financial investment, there is a voting procedure.
One of the problems is that these changes are generally handled in a two-stage or even three-stage process that is slow-moving. Typically, a change is proposed by someone who outlines its specifics and then attempts to raise support for it via social media, or in our case Discord channels and DM groups. The discussion phase of the proposal must continue for a certain period of time.
Next comes the RFC phase where a preliminary vote is held while the Governance Officer monitors the votes, views, likes, and comments. During this stage, you may have a mob voting against a beneficial proposal without any evidence of holdings as the forum is accessible to everybody, not only holders. The actual decision makers, who possess most of the voting power, might be ignored since the proposal can stay in this phase indefinitely if enough people can hold the voting results below 60%. Taking advantage of forum governance, you could hire people just to vote down proposals, indicating a colossal security issue.
If the proposal appears to be beneficial, if it lacks people rallying against it and yet does not get enough attention, then again the system requires manipulation to work to raise awareness and to encourage people to vote, again without any proof of holdings. Wonderland promised the real holders a long term investment opportunity of passive income, and they can “stake and chill” by providing active treasury management, which is inefficient right now, and the revenue sharing system. In the event that sufficient support is received, a second vote, snapshot, will be held to determine whether the proposal will be passed or rejected. The discussion and polling periods last for weeks. Valuable time is lost and until the snapshot vote ends nothing can be implemented.
For a financial proposal, all that is needed is a TMP. With the TMP, essentially it is announced to the entire DeFi community what Wonderland will do in the future. Due to this procedure, a significant amount of yield is lost daily.
As an example, only UwU Lend, which was one of the most controversial proposals and had to be voted on three times, resulted in Wonderland losing an average of $4,000 per day (approximate, impossible to calculate with maximum precision) for every day the proposal was delayed. The Treasury Council decided to lock UwU on 8th of November and the final approval arrived on 8th of December resulting in an approximate amount of $120,000 in damages. This is directly affecting the liquid backing, the yield is considered liquid for the redemption price. Aside from the daily damages, the exposure of this proposal was significant and led to a certain amount of frontrunning. The original proposal for the lock-in UwU LP was drafted with Wonderland at the time looking at around 300% APY returns on investment. However, once the TMP actually passed, a month later, Wonderland was looking at 90% APY returns on investment.
Our seed investment in Interport is another example. As part of Interport’s seed phase presale investment, Wonderland intended to invest $1,500,000 for 7,500,000 ITP at $0.2 per token. Upon approval of the proposal, Interport’s presale had already concluded and the price had changed to $0.3 per token. Ultimately, Wonderland acquired 5,000,000 ITP, resulting in an overall loss of 2,500,000 ITP, or $2,800,000 at the current valuation.
The Swapfish investment was among our Alpha findings. However, yields dropped by over 50% during the TMP delay, when both the Alpha and our intention to join were announced to anyone interested in joining. Giving them days of yield that should have gone to our holders.
Several other positions were canceled or modified as the TMP caused frontrunning and valuable time was lost. Some strategies were never proposed, as they cannot efficiently be implemented with these processes.
As explained, Wonderland’s Treasury is threatened by lengthy procedures and frontrunning opportunities that the Protocol provides by informing the public space in advance of Wonderland’s investments. This tactic would be considered outrageous by any experienced investor. It is common for frontrunners to pay for access to such information, whereas Wonderland leaks it for free via the TMP system, confusing strategic information censorship with transparency.
The purpose is not just to demonstrate how the protocol would be more efficient, but also to highlight how its current structure is unintentionally rugging its holders by being completely inefficient due to the lack of a clear decision making leadership.
It is prudent to establish a successful corporate management structure for Wonderland in order to ensure long-term stability, security and flexibility to reach our full potential and profit the most. Corporate management structures have been developed through decades of experience and billions of dollars of investment, and have been found to be an optimal structure by regulatory agencies and think tanks around the world.
For the Protocol to be successful, secure, and stable, it is essential to have a strong leadership team with decision-making authority. We are in the midst of a bear market where opportunities are limited. Now is the right time to take action and evolve to prevent further losses caused by our systematically flawed experiment and establish a proven working system to do what the vast majority wants. Security, efficiency, stability, performance, profit.
Fortunately, this year, a number of individuals from the community emerged to lead the internal process and maintain the Protocol’s integrity and vision.
Unfortunately, Wonderland has become cluttered with constant discussions meant to stir up controversy in the present day.
Due to the our attempt to be a DAO that wants to have all decisions run through every holder, it operates as a hippie community that is statistically susceptible to failure due to the small number of voices in conflict drawing the attention from what really matters and the lack of flexibility in a space where timely response to conditions is the key to success.
It is imperative to give the team the opportunity to continue with greater efficiency what they have been doing for the past year, despite their limited access. A better management system is one that aligns with real-world trends and lessons learned, rather than reinventing the wheel. The DAO should be responsible for setting the general direction of the organization, while management should be responsible for its day-to-day operations.
A five-department structure was designed based on Wonderland’s current operations to avoid the danger of testing an unfamiliar system which could lead to negative results.
Every department is led by an officer, while the Visionary ensures that Wonderland’s vision is adhered to throughout the organization and supplies valuable insights and knowledge needed to run a multimillion-dollar organization securely, efficiently and effectively.
Supervise all departments in order to ensure that the vision for the Protocol’s growth is implemented and provide knowledge and guidance on delicate decisions. Strong leadership skills are required, as well as the ability to lead and advise.
The founder, Sifu, is proposed to serve as the Visionary of Wonderland.
The voice of Wonderland. Communications, social media, and community platforms are the scope of this department and serves as a meeting point between the various departments and the community at large.
Proposed as Communications Officer of Wonderland is Alice.
Responsible for ensuring that all departments are functioning within their authority, and that power abuse and external influences are not occurring. Make sure respect is accorded to all decisions made by the new management.
Proposed as Compliance Officer of Wonderland is Nal X.
Overseeing all Treasury-related activities. Responsible for the preparation of quarterly Treasury reports for the holders, oversight of the Treasury Team and their payments, community proposals, risk management, and approval of strategies.
Proposed as Finance Officer of Wonderland is ruian.
Make sure that the information is accurate, the structure is appropriate, the internal organization is effective, and that legal advice is followed in cooperation with the Compliance Department. In addition to ensuring Wonderland’s internal operations are efficient, the Operations Department will provide the rest of the departments with solutions to increase day-to-day efficiency. Also, the Operations Department serves as the Protocol’s information bank.
Proposed as Operations Officer of Wonderland is Bamchicka.
It is the responsibility of the Technology department to ensure that the protocol’s technical components meet industry standards. Assuring that all technical operations are functional and properly managed, as well as ensuring that technological resources are geared towards technological advancement and all technical improvements and suggestions are implemented in a timely manner.
Proposed as Technology Officer of Wonderland is Catalyst.
The DAO serves as the organization’s board of directors and elects officers to handle all aspects of the organization’s management. Token holders are provided with close communication every day through our social platforms and discord channels, or they can opt to follow the quarterly performance reports and our monthly treasury reports instead. As per legal advice, establishing this structure will be beneficial for future restrictions and regulations as it closely resembles existing real-world structures.
In order for the Protocol to fulfill its strategic mission, the elected Officers are responsible to collectively establish and publish the operational system that demonstrates how specific activities will be handled. It is expected that the first internal structure report will be provided within a month if this proposal is approved, although all departments will take their positions immediately upon approval. After that, any alterations to the new structure will be published to the DAO quarterly.
In order to ensure frictionless workflows, secure procedures, and adhere to legal advice to prepare for any upcoming regulations, we will implement an internal system of operations that is as close to actual fund guidelines as possible.
Officers and the Visionary are responsible for running the Protocol to its fullest extent and handling its daily operations. In the absence of explicit mention and confirmation by them, all previous votes on governance are now to be considered merely as guidelines, not as rules, until a new clear structure about all different aspects of our organization is voted and implemented.
The Compliance and Operations Departments collectively, will create and maintain documentation that will contain all internal decisions on every aspect of the protocol that members should follow. Also it will include all future decisions approved by the DAO on handling delicate to the organization matters. This documentation will be matter of ongoing change and improvement and a live version will always be published online for every DAO member to refer to.
The revised management structure explicitly sets all internal rules. The Operations Department is responsible for documenting all decisions made and sharing this information with the Community Department and the Compliance Department. The Compliance Department is in charge of ensuring that all managerial posts follow every decision to the letter. The Department of Technology is responsible for implementing new features and tech wherever necessary and improving all technological aspects of the organization. The Finance Department is responsible for monitoring the performance of all members of the Treasury Team, optimizing profit while minimizing risk, and overseeing the performance of the treasury team. The Community Department serves as a point of contact between the DAO and the officers. It manages the organization’s communication infrastructure, improves engagement, and ensures that information is made available to all members.
Henceforth, the Visionary and the Officers will be referred to as “members”.
Members may propose the removal of another member by internal vote, with a majority vote being required.
A No-Confidence Vote (NCV) can be proposed by the DAO at any time as a DAO Discussion [DD], with solid reasoning, to replace any member. Since this is a significant subject that might potentially disrupt current operations, the proposed DAO member should bring this matter to the attention of the Team. The Team will undertake an internal inquiry, and the results will be presented. If the findings are adequate, the members will vote to oust the member in question from the organization. If the internal vote to oust the member fails and the situation remains unresolved, the DAO member may initiate the forum-based removal process as follows: The NCV must be posted and remain open in the Wonderland Forum for seven days for discussion before voting. At the conclusion of the seven-day period, a snapshot vote will be conducted. In order to prevent exploitation of the system, if a NCV fails, the member has immunity for three months and during this period can only be removed by an unanimous members’ vote.
In the event of a member being ousted, unable to fulfill the duties of the position for a prolonged time, or resigning prior to official elections, the members will vote for an interim replacement and an open letter will be posted in the forum following the established procedure of the DAO for hiring officers. The members are holding the responsibility to do the due diligence for every application and to approve the candidacy.
As per industry standards, real world corporate fund standards and legal advice, a 2% annual management fee will be instituted.
Elections will take place each year in June for every department position.
The Operations Department will collect all applications from the 1st to the 7th of June.
On the 8th of June all applications will be published in separate forum posts, during this period the community alongside the members will have 7 days to do due diligence for every applicant.
Six snapshot votes, representing every department, will be posted on 15th of June for a period of seven days. The newly elected members, vote winners, will be announced to the community on 22th of June. There will be eight days of transition from the current management to the newly elected management with the newly elected members participating as observers till the 1st of July when they will assume the responsibilities of their respective roles. The first term will start immediately after the proposal passes.
A new subcategory, Wonderland Management Proposal (WMP) will be created, replacing the RFC and WIP sections. The DAO Discussion section (DD) may be used by any member of the DAO who wishes to post an official proposal for review by the management team. The management team as whole or any member of the management separately can edit, refine, and promote the proposal to WMP, if the proposal is deemed as beneficial for the DAO and enough participation is reached. The management team may use a direct WMP to obtain DAO approval for controversial or highly important decisions. It should be noted, however, that while this will be the case for any major changes, this option is not mandatory for lesser management changes. The discussion phase timeframe for each WMP prior to moving forward with a Snapshot vote will be determined dynamically by the management team based on the state of emergency, the complexity and the feedback received.
If this proposal passes, the newly elected members and the Visionary will constitute Wonderland Management Team. All responsibilities and authorities for the management of the protocol will be transferred to them. Decisions made using the old governance system serve as guidelines which could be followed until new amendments are voted through a WMP.
Our goal is to implement a system that is as close to real fund guidelines as possible, for a frictionless workflow and a fast, but efficient decision-making process. Implementing a proven system will not only enhance our ability to comply with regulatory requirements, but will also allow us to formulate legally and statutorily acceptable guidelines as well.