[RFC] - Amendment & Clarification of Quarterly Redemption
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Yes, this provides proper clarification
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Yes, but this need more clarification
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Make No Changes
Name
[RFC] - Amendment & Clarification of Quarterly Redemption
Link to previous [DAO Discussion]:
[DAO Discussion] Amendment & Clarification of Quarterly Redemption
Objective
The objective of this proposal is to clarify some aspects of the original proposal as well as do some minor amendments.
Provide a High Level Overview
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Add the explicit notion that the Treasury Manager should look at minimizing the impact of assets being redeemed.
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Clarify the intent behind how assets are to be distributed.
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Modify some wording of the original proposal to reduce gaps.
Provide Low Level Details
To address the required clarifications, Objective 3 of WIP 9 will be the main subject of our modifications.
For reference: [WIP #9] - Quarterly Redemption Option for Holders
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A paragraph to add consideration on how the assets should distributed in order to limit the impact on the parties involved will be added.
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A paragraph to better explain the intention of redemption and how the value per wMEMO is to be calculated will be added.
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To remove some of the confusion, it is proposed that we rename “VC assets” to “seed assets”. This will align better with the proposed definition in the original WIP and make it more clear that VC investments like WIP 11 do not fall under the “seed assets’'.
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Additional changes to wording in order to increase overall clarity.
Most modifications would fall under objective 3 of the original WIP. Here is what the new version would look like:
Objective 3: Assets considered as part redemption.
Illiquid assets, assets allocated to the revenue share farm, and a portion of seeds assets** will not be added to the redemption price per wMEMO.
No additional exit fees or penalties will be enacted or deducted from the redemption price.
The redemption price and assets allocated per wMEMO should be calculated based on the circulating supply of wMEMO. The distribution of seed assets allocated for the redemption should also be calculated based on the circulating supply of wMEMO. Both, the redemption price and the redeemable assets per wMEMO will be indicated in the redemption breakdown provided prior to the whitelist period.
Before adding an asset to be redeemed “as is”, the Treasury Manager will consider the consequences of doing so in order to preserve value and limit the impact that redeeming the asset may have on the holders, redeemers and the protocol. As an alternative, the affected protocol will be offered the opportunity to buy the assets eligible for redemption through an OTC trade at market price (with the possibility of negotiating a lower price) prior to the redemption period. If a deal cannot be reached the assets can be sold OTC to someone else, redeemed or the value-equivalent of the token can be added to the stable portion of the assets being redeemed.
In the event of an unforeseen situation or issue around assets not covered by the proposal, the Treasury Manager will use their discretion in an equitable fashion for holders and redeemers with an allowance of up to 25% of the asset redeemable.
**The value of up to 25% of any seed assets that are considered liquid will be added to the redemption price. The final percentage allocated will be determined by the Treasury Manager and announced as part of the redemption price prior to the redemption period.
Seed assets: For the purposes of Redemption, “seed assets” are defined as both liquid/illiquid assets generated from seed funding investment from the treasury To fall under “seed assets”, the investment does not require equity as a result. A Simple Agreement For Future Tokens (SAFT) investment would also qualify.
Business and/or technical requirements of the implementation of the proposal
No business or technical requirement other than the Treasury Manager taking the changes into consideration when the redemption period approaches.
Since an RFC is a “work in progress” Proposal, not all of these points need to be filled out from the beginning. They can be added over time as the RFC evolves into a mature Proposal.
