Link to previous discussions:
[DAO Discussion] Amendment & Clarification of Quarterly Redemption
[RFC] - Amendment & Clarification of Quarterly Redemption
Link to snapshot
https://wl-l.ink/Snapshot/WIP-18
https://wl-l.ink/Snapshot/WIP-18-2 *extension due to wrong timeframe on initial vote
Objective
The objective of this proposal is to clarify some aspects of the original proposal as well as do some minor amendments.
This proposal is administrative in purpose only and does not change the original intent of WIP 9. It serves only to clarify sections of the original proposal and does not change the redemption process.
High Level Overview
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Add the explicit notion that the party in charge of redemption should look at minimizing the impact of assets being redeemed in the best interest of holders, redeemers and affected protocols.
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Clarify how assets are to be distributed.
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Modify some wording of the original proposal to reduce gaps and remove some of the confusions around “VC assets”.
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Add a clause for periods where there is no Treasury Manager.
Low Level Details
For reference: [WIP #9] - Quarterly Redemption Option for Holders
To address the required clarifications, “Objective 3” of WIP 9 will be modified to the proposed text below:
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.
Using the current investments as an example, the Betswap and Cross the Ages investments do fall under the “seed funding investment”, but the Sifu Vision investment does not.
Additionally, to ensure the continuity of redemptions, in the absence of a Treasury Manager, for all intent and purposes, the process will be managed by other elected representatives as per WIP 15.
