[DAO Discussion] No Confidence Vote in the Team given their performance since implementation of WIP #32
I am writing this proposal for a No Confidence Vote in the appointed Wonderland/Volta team overseeing the departments below in review of the performance and competencies shown since the passing of WIP #32, Wonderland DAO Amendment. Throughout this post I will refer to the DAO as Wonderland (it is still the contract name, from August 2023). WIP #32 created a 6-department structure for operating Wonderland:
If the team and individuals responsible for overseeing these departments are to be truly judged by WIP #32, then I believe all have failed in their key duties that were required to serve its token holders in 2023.
WIP #32 was built by taking legal advice into consideration. The High Level Overview from it reads:
“The following proposal was crafted after a series of in-depth discussions 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 negatively impacted 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 Wonderland’s day-to-day operations.
Moreover, Wonderland has been subjected to long, frequent, and inefficient governance procedures, which are susceptible to manipulation. Though the team has always focused on the community and how to serve it better, unintentionally it has resulted in 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 of the shares.”
A WIP such as #32 is built to entrust a team of people with making important decisions and delivering results in a number of ways, and as it clearly states it was brought about to avoid someone who may “accumulate voting power for a brief period of time” and also avoid a system “that focuses and abides by the loudest people, not the clear majority of silent “stake and chill” token holders.”
Unfortunately, I do not believe the management team have acted in accordance with this when the need arose in 2023. The clearest issue that Wonderland (now Volta Club) had to deal with in 2023 was the Multichain hack forcing the team to act promptly and come up with solutions to protect Wonderland DAO members and TIME, MEMO or wMEMO holders.
- This proposal simply questions the decisions and execution of strategy by the appointed Wonderland team in the solution that was designed following the Multichain hack and how that strategy unfolded.*
*Following the announcement of the Multichain hack in early July 2023, it came to the attention of Wonderland team, participants and followers that a huge risk had been introduced to the protocol as unbacked wMEMO was minted and could completely disrupt the DAO and treasury. As a result, the decision was made to migrate to a new token and replace the old three token system (TIME, MEMO, wMEMO). Another decision made was to rebrand Wonderland to Volta Club. This announcement was posted on 28th August 2023, albeit in a fragmented fashion.
An exchange ratio of 1:330 was announced for wMEMO to Volta, giving the new token Volta a max supply of 1mm. A migration process was developed by the team to do this. It was called “self migration” where holders of wMEMO would need to manually access the migration contract on the new Volta Club website. This “self migration” contract would then migrate the wMEMO to Volta at the previously stated exchange rate while the team continued to manually review migrations to avoid the maliciously minted wMEMO from the Multichain hack entering the new Volta Club protocol. The “self migration” contract opened for a period of 69 days.
Following the “self migration” contract, the team then began “manual migrations” following the closure of the “self migration” contract on 7th November 2023. This required an enormous time effort from the team to complete, as well as still requiring wMEMO holders to manually create a ticket on the new Discord server for Volta Club (new server announced 9th November 2023). A hugely time consuming act for the team led to widespread frustration among new Volta Club holders and 10 days after beginning “manual migrations” on 19th November 2023 at 02:36 am a DAO Discussion was started called “End of Manual Migrations”. The post made a proposal that 1st January 2024 midnight UTC would be the deadline for manual migrations, 53 days after opening the new Discord Server and ticket system to begin these.
The proposal found a sponsor, without amendment, from a member of the appointed Wonderland team to move to a CMP, or vote. As a result, at 00:00 UTC on 1st January 2024 over 70% of wMEMO holders who were part of the Wonderland DAO in August 2023 have now had their token allocation in the new Volta system burned, which as of today 6th January 2024 is the equivalent of over $100 million. This stake in the treasury has been transferred to Volta holders.
The departments responsible have simply neglected the duties given to them and have proven incapable of upholding WIP #32’s vision. Below is a brief overview of the failures within each department. I have avoided splitting these into high and low level overviews.
As per WIP #32:
“The voice of Wonderland. Communications, social media, monthly Medium articles and community platforms are the scope of this department and serves as a meeting point between the various departments and the community at large.”
Responsible for communicating the important decisions to a community of tens of thousands of members and utterly failed.
The biggest and most prestigious following Wonderland achieved since 2021 was its 137,000 followers on X.com/Twitter. In the “rebranding” of Wonderland since 28th August 2023 there was not one Tweet posted with the words “Wonderland” and “Volta” in the same post. The individual responsible for overseeing communications did not communicate to the protocol’s largest following, even once in four months, that “Wonderland is now Volta”. Impossible to understand how the most basic level of communication was not done for such a huge rebranding as it combined with the need for migrating tokens in the protocol and badly needed a large response from the community.
Did wMEMO holders not migrate because now they don’t want their money or did the majority simply not have a clue who Volta Club was since there absolutely no coherent communications strategy for the rebranding and migration? The ““stake and chill” token holders” were not communicated with. Since our communications department never put the words “Wonderland” and “Volta” in a post there would be no direct association found by a person viewing Twitter who sees wMEMO and Volta Club in a post, without any mention of Wonderland. No connection between the old and the new. Most people will not associate the link and it is woeful to ASSUME that tens of thousands of people will understand the same way. Rather than giving all holders a complete picture how what was unfolding for Wonderland, the communications strategy acted more like a jigsaw or a puzzle. It was left to the holder to figure who was posting on their timeline.
All posts concerned with migration since 28th August 2023 reached approximately 5% to 7% of the Wonderland/Volta Twitter following under the handle @TheVoltaClub. Below are the two posts that the Twitter account posted for the deadline window, one in November and one in December. Despite the fact that barely 20% of old holders had migrated, there was zero posts with an urgent appeal to members of the old Wonderland to try inform people better about what was going on. It was not a communication strategy, it was not the “best we could do”.
|27th November 2023
|25th December 2023
The official Tweet to launch rebranding from Wonderland to Volta on the Twitter page got 19,000 views. It was the first post in nearly two months from this account. The account changed name/username and logo but got 20% of people who saw the first tweet to read the second because tweet 1/7 never mentioned that this was still Wonderland! For anyone reading, it is pretty easy to see how they might think that Volta Club is transferring to a new token - not Wonderland!
If this is what the “rebranding” was, how can it be taken seriously and how can the communications department stand over their work? What metrics have they been using to determine whether the message was getting out to wMEMO holders properly or not?
In messages on the new Discord server, the team have responded saying “we did everything we could” - does no linking from Wonderland to Volta for a rebranding sound like that? Does one tweet per month getting to 5% of followers about a deadline for migration sound like that? If that is actually doing “everything we could” then I cannot see how the communications department position in Wonderland is tenable given these absolutely woeful metrics show they did a terrible job in getting the message out to the majority of wMEMO holders that firstly Wonderland was now Volta (literally did not say once) and second that they needed to migrate before a deadline (95% did not see these Tweets). How does this show good communications performance and how does it show competence in the role?
New social media channels were created on Reddit and Discord. Both have shown a massive drop in members. Why some social media channels like Twitter were just transferred to the Volta Club name and why others were left to start new is strange. The numbers who changed across again show a poor performance in communicating to members - even on the old platforms that a new channel was set up.
|137,000 Followers (old account)
20 to 25% of old members transferred. While a Tweet was mentioned on 9th November 2023 about the new Discord server for Volta Club, again no direct association was made to connect this for followers on the largest social media platform that this new Discord Server was actually Wonderland.
Despite there being only 20% of members transferred to the new Discord server, no announcement was ever left on the old server to the remaining 30,000 members that a deadline had been imposed on getting wMEMO migrated to Volta and what the repercussions of this would mean. Surely the team serving all old holders should have had some urgency in doing all of this for all wMEMO holders?
0 Tweets were used to announce the new Reddit channel. I have seen some posts saying that the old Reddit may not have been the actual official one, if so doesn’t that deserve a Tweet to 137,000 people that a new Reddit has been created?
WIP #32 gives the team flexibility to make decisions and develop the strategies to execute on those decisions. In return, a high level of transparent communication that causes minimal confusion and is streamlined across all communication channels must be expected from this department. This department have failed to do so and they have failed thousands of people. They must be able to show that they made every attempt to make people aware, not even linking the name Wonderland to Volta on a Twitter post once in four months and bare minimum posts about migration show this clearly was not done.
Again, I would think a communications department wanting to align itself with the vision of WIP #32 would go above and beyond in their communications, it is a department that could be the source of huge growth for the protocol and it is ultimately not serving all holders and did not serve the 70% of wMEMO holders who have been burned.
“The Compliance Department should provide advice and assistance to all managerial posts with regard to compliance with all relevant laws, regulation, and DAO rules.”
I would argue that the simplest law, regulation or DAO rule that the compliance department missed was the following in WIP #32. “Token holders are provided with close communication daily through Wonderland’s social platforms and discord channels, or they can opt to follow the quarterly treasury summary and market outlook and regular news articles instead.”
The “or” statement in the above section from “Department Details” quite possibly solves a very simple issue which has been the source of much frustration and led to the CMP #1 vote on ending manual migrations. Had the compliance department done what has been entrusted by them by all token holders in January 2023 they would have acknowledged that some token holders will only view the quarterly treasury report for information or possibly Medium articles (of which none were written to tell holders about the 1st January 2024 manual migration deadline). I understand that a DAO can propose a vote and an arbitrary deadline, but the team is following a clearly set out WIP and a member of the team sponsored a vote despite quarterly communications being the minimum standard the team are to follow. Did the compliance department highlight this to the team member who sponsored the vote?
“Establishing this structure will be beneficial for future restrictions and regulations as it closely resembles existing real-world corporate structures.”
Many Discord messages show frustration to “the the clear majority of silent “stake and chill” token holders” by asking why can’t they just jump on Discord to find out what’s happening as much as everyone else . As per WIP #32 this is not expected. The Q3 Treasury Report for 2023 did not tell any members that they had a deadline to migrate. It would have required telling them this in the Q4 Treasury Report for 2023.
The vote to end manual migrations might well have been compliant, but only after all holders were told about a deadline and this includes those who prefer to check on their investments quarterly. Given that a team member sponsored this vote, it raises huge concerns. No migration notice whatsoever was mentioned in the Q3 Treasury Report for 2023. It may be the compliance department’s fault that it did not inform the communications department or financial department of the many requirements it would have during this period.
As there was no change noted to WIP #32 since its inception, these expectations of quarterly check-ins apply are the most basic requirement that can be asked of any holder, if we are to apply an interval to which they should check in. It is the only thing Wonderland holders had in writing about their expectation to be informed. The vote gave a deadline period from 27th November 2023 to 31st December 2023. It was the compliance department’s responsibility to not accept this window (or at least argue strongly to amend the vote) and follow its duty to protect all possible Wonderland holders by advising of a deadline after the Q4 Treasury Report (and including the deadline information in the report) and at least 1 Medium Article on the deadline. This did not happen and the compliance department are ultimately at fault for the short window that the vote proceeded with. There are no comments under the DAO Discussion for ending migrations where the compliance department advised of a longer window for a deadline.
Again, it is almost certain more wMEMO holders would have migrated to Volta if this information was at the very least advised by the compliance department in the DAO Discussion. Most Volta holders would accept that it is fair to at least follow the only piece of writing that Wonderland has made available to holders and that is end of quarter intervals.
“Oversee all Treasury-related activities. Responsible for the preparation of quarterly performance reports for the holders, oversight of the Treasury operations and its budget, community proposals, risk management, and approval of strategies.”
As per the notes on the compliance and communications department, the finance department failed to once mention the word “migrate” or “migration” in their Q3 Treasury Report for 2023. They failed to mention anything about “rebranding” in the Q3 Treasury Report 2023 or that this is still the Wonderland Treasury Report. The Q4 Treasury Report 2023 “Buybacks are reaching the $200 level on Volta for the first time as migrations come to a close. We launched in the $90–100 range, so Volta holders are reaping great rewards!” The first mention about migrations by a treasury report is when the deadline to do them was over! As per WIP #32 this does not support all holders. They were not informed by the treasury report in Q3 about what happened, this follows no tweets from 28th August 2023 about “Wonderland now being Volta”. Holders who are not part of a small group on Discord have been completely isolated and the numbers who migrated speak for themselves. This is the first fault of the financial department, surely a better newsletter was required for Q3 to let holders know what was happening!
In terms of risk management, there is simply one risk that the team failed to highlight over and over again. The team seemed to be completely concerned with outside risks and the strategy concerned only with outside risks of wMEMO entering the system, but what about the risk mentioned in WIP #32 from a group who “may accumulate voting power for a brief period of time”. This is a huge financial risk to Wonderland and the treasury. In November it was clear how many migrations had occurred when the vote came about and when the discussion started. Migrations were in the 20%s. Any vote to get rid of a significant portion of wMEMO holders during this time for holders who could only vote with Volta is a complete an utter failure to highlight the financial risk involved to Wonderland. Again, there are no DAO Discussion comments from this department to highlight this as per their duty. It has resulted in $100 million transferring to <30% of holders. Complete and utter failure. And again, in a well functioning operating system a financial department would advise all team members of this risk and advise team members to not sponsor such a vote due to the damage it may cause.
It is also questionable to highlight buybacks as such an important part of the Wonderland strategy given the clear failures it had in January 2022. It gives holders a false sense of security. The only way it possibly becomes more effective is to make the group of buyers and sellers smaller so that buybacks can have more control. So is this what the financial department is looking to do? Rather than grow Wonderland, it has closed it’s circle to a smaller number of buyers and sellers and put in a false floor on price? Would it not make more sense to focus on growth through investment which is what holders want and expect? Liquidity for trading the token is possibly the worst for something of Wonderland’s size compared across other coins and tokens. Now the largest pool of potential buyers and sellers (old wMEMO holders) have been eliminated so the pool will struggle to grow.
Treasury end of Q1 2023 - $134 million
Treasury end of Q4 2023 - $136 million
But Volta is now up and people are happy - but it’s only due to a failed strategy by the team that has meant old holders are gone.
“Ensure 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. The Operations Department also serves as the Protocol’s information bank.”
I mean if this department almost serves as a link between all of the rest why is there such a fragmented approach between them all. If it’s supposed to be an information bank for the protocol why are the other departments clearly uninformed on what their responsibilities were as per WIP #32?
Discord server members who have been asking about the deadline since 1st January 2024 have been banned from doing so within a few days, told they are “stirring the pot” and “beating a dead horse” by team members. What is the plan as more and more wMEMO holders come to find out what has happened. What happens when someone with a far greater reach than this poster finds out what happened.
How much was it going to cost to build a fully automatic migration contract and how long would it have taken? I think given the scale of the amount of Wonderland holders this simply needs to be clearly answered. Everybody understands there is a challenge, it still needs to be quantified and still can be. Any team undertaking a project will have options and ways to do it to get to the final result and will put time estimates on cost and timelines for each. I think clearer numbers here are important, as in actual $ cost and dates. And also, if there was a more manual process going to be required, how much time did the team expect this to take. Ultimately, that is what led to the CMP #1 vote so I think it would be important to acknowledge if migrations ran as expected time wise or if the team completely under-estimated what would be needed and therefore, could have tried to communicate with the DAO about that, and essentially not sponsor the vote.
“Ensure that the protocol’s technical components meet industry standards. Assurance that all technical operations are functional and properly managed. Ensure that technological resources are geared towards technological advancement and all technical improvements and suggestions are implemented in a timely manner.”
The frustration which led to a vote that now sees over 70% of wMEMO holders having their tokens worthless came about due to the technology deployed to help the team get the migrations done. They were not fit for purpose to transfer tens of thousands of holders. The team says it did 5,000 migrations in the last 1.5/2 months. At that rate with the technology they had it would have easily required 12 months to get all holders migrated if the technology department was to work as per WIP #32 and serve all holders. Depending on the source of information, the holders to be transferred can be estimated to be 50,000 (happy to be corrected if the wrong contract is being used here from Snowtrace $677.53 wMEMO Token | Token Tracker - Snowtrace).
Rather than improving the technology available to the team as time went on, it actually went backwards. It led to mass frustration among already migrated holders. The technology department failed to suggest anymore solutions to this that could help ease the situation over time. Understandably, the hack on Multichain caused a complex problem, but what would stop a better technological solution to migrated users over time? It is dealing with on-chain data and should be expected that a 9-figure fund can build the technology to deal with this. It would also serve as a potential signal that Wonderland is innovative and is extremely secure for any similar future hack like what happened with Multichain. If one happens again what will be the response from the technology team? Same manual migration method? No technology was ever built perfectly straight away, if a staggered approach was required to getting to the best potential version then that needed to be investigated more.
The frustration that built up with already migrated Volta holders could conceivably be because they saw no end in sight that for the team to focus on migrations and nothing else. A plan of action from the technology department could have eased this.
Also, if the technology department are responsible for the website, why are they not co-ordinating with the communications, operations and compliance department to ensure that people who get their Wonderland information from the website are served there? There was no mention of the deadline for manual migrations for some time after the vote happened. A similar problem occurred in November when the website did not mention the deadline for self-migrations then either.
Another clear indication that WIP #32 has not been followed and all token holders interests catered for. I mean, why it is that basic communication across platforms is not a necessity and why it is not learning from mistakes immediately? When I say I think Wonderland’s communication is more similar to a jigsaw than a clear picture, this is what I mean.
“Advise all departments in order to ensure that the vision for the Protocol’s growth is implemented and provide knowledge and guidance on delicate decisions. Analyzing and providing insight into the potential risks associated with the protocol’s financial investments to help avoid making decisions that might have unintended consequences. Whenever necessary, assisting with the negotiations with third party protocols.”
Surely, I mean surely, the conflict of interest had to stop you sponsoring the vote, outside of every other failure that the other departments have shown in these last few months. I am happy for you to completely correct all figures I have, I am no expert in blockchain explorer analysis or whatever it might be called so I would ask you or anyone else who is to put up the correct numbers, they are not accessible anywhere within the Wonderland communication channels so this is the best I can do.
Current centralization numbers for Wonderland/Volta Club (please correct):
270,000 circulating Volta Club Tokens approx
100,000 combined in uVolta for Sifu.Vision (90%) and Sifu (10%)
37% for Sifu/SifuVision.
Is there a vote on Sifu.Vision when casting votes for Yes or No in Wonderland or do you just make that decision?
While I understand that the team does not have a veto on what the DAO proposes, they can essentially have a “silent veto” by not sponsoring such a vote knowing that they are tied to a protocol or framework like WIP #32. Since the Snapshot vote is not now available online, I have posted below the downloaded .csv file results from before that event (Snapshot taken down) happened. The comment you left on your vote states you are “voting with the overwhelming majority of the community.”
Despite WIP #32 serving as a guidance for how team members should operate, your comment, your sponsorship of the vote and your vote flies in the face of that protocol completely.
“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 of the shares.”
Measure this whatever way you want, but even after sponsoring that vote you still had the choice to vote No if you truly felt all holders were not being served. Not counting your vote, the yes and no’s totalled the Volta number number. The wMEMO equivalent (1:330) for yes votes was just over 21, out of a total of over 3200 - “collectively hold a very small percentage of the shares”
If you want to look at total votes cast, that was 123 - “voting with the overwhelming majority of the community.” All done while migration numbers were at 20% or so.
Out of all social channels that Wonderland has available, you are possibly the second biggest in terms of following with 66,700 on your Twitter page (behind the main Wonderland Twitter page) and despite being an active poster not once in the last four months did you retweet something from the Wonderland page around migrations/deadlines, and neither did the Sifu.Vision page for that matter if you want to pass on the problem to that.
If the DAO votes for one thing and you are okay with it (CMP #1) then you must apply that across all votes that have been approved by the DAO and that includes WIP #32 which has given you the freedom to make your investments. In return for that freedom you have a responsibility to serve all token holders as per the numerous sections of WIP #32 I have added here, instead you sponsored and voted to end the majority’s participation in the DAO while there was holders who were able to “accumulate voting power for a brief period of time”.
The circle has closed around the treasury, it is surely a reputational risk that Wonderland did not need. If the fund was to achieve massive growth in the next couple of years do you think out of thousands of people who have had the migration window closed, at least a few wouldn’t want to explore all options and tackle the decisions of the team in whatever way they could? Does that reputational risk alone not put a cap on growth for the treasury? The current excitement around a Bitcoin ETF is built around Wall Street having more ways to enter the market - more liquidity. How can clearly centralizing Wonderland more than ever be a benefit to the token holders?*
If all team members can read this and truly think they have applied WIP #32 when they were needed then I don’t see how it is actually relevant anymore and I would say that it opens many questions around the validity of any vote held by Wonderland. It means there are no standards to which each department will hold itself to to benefit all holders and the basic requirements asked of them have not been considered when implementing their decisions and strategies. I will again state that I understand they had to deal with a difficult situation and can see how it opened up an opportunity to change from the Wonderland name but the failings which have led to a combined loss of close/more than $100 million (based on average treasury of $130 million across the year) to the majority of holders is something that just cannot be hidden or just passed off with throw away comments. While everyone can be frustrated with long term holders and maybe their inactivity WIP #32 literally had a basic definition of what might be expected in this area from participants - a quarterly review. It also said it will communicate across all channels and would manage risks of any smaller groups getting voting power in a short duration of time. The rebranding, migration and vote all show negative performance in comparison to this from the team.
If the team do concede that the information above shows that they have not acted in accordance to WIP #32 they’re options are:
- Sponsor the vote of No Confidence, which if they now want to act in accordance with WIP #32 should be also posted on the Wonderland Snapshot page seen as no governance procedure ever seemed to end that
- Provide a solution to fix issues and risks that have come up because of the CMP 1 vote. Given the flexibility and responsibility they are provided with from WIP32, they could ensure a fast response as more wMEMO holders come looking for their money just one week post the imposed 1st January deadline
As there is a requirement for collaboration across teams, it is possible that some team members informed others about their duties under WIP #32. If these were ignored and another team member’s continued without regard for the compliance aspects of their duty then I do not see why the rest of the team will not exercise their right as per WIP #32 to “propose the removal of another team member by internal vote with a valid reason. Majority vote is required.”
To ensure this post is seen, I will soon be creating a Twitter page to hopefully do the job of communicating with wMEMO holders since now they seem to be clogging up the new Discord server with questions and post everything I have on the feed and the page will be promoted hopefully helping TIME, MEMO and wMEMO holders find out that they’re holdings are now worthless and I will send them to the Twitter account who changed its name without letting people know - @thevoltaclub.
I understand a DAO can vote on anything, but ultimately there is responsibility resting with the team for causing any frustration the migrated Volta holders had due to each department’s failings that concluded with a team member sponsoring the vote.
I would have imagined that in a new bull run Wonderland could position itself as a project that could see a $10 billion treasury if it had a reputation that could get in the door for some of the best deals/crypto start ups out there. Instead, given what has happened I do not see it being anything more than a “Golden Goose” treasury fund where the team will get the fees and Volta holders are told “buybacks are coming”.
Thank you for the Wonderful Memories.
- All team members have not performed as per standards set in WIP #32
- All team members have performed as per standards set in WIP #32