[WIP #5] – Offer a Rage Quit Option to wMEMO holders

[WonderlandTeam]

[WIP #5] – Offer a Rage Quit Option to wMEMO holders

Scope:
This proposal is inspired by a collection of threads including the RFC from DCFGod. It combines elements from all threads and allows the development team to prepare the contracts for the rage quit within a specific timeframe.

The past few weeks have been turbulent for Wonderland and its community. With a need to find new treasury management and an uncertain future, the wMEMO price took a toll. While a vote was casted to remove its current treasury manager, it left the DAO without buybacks or any active treasury management. As a result, the price of wMEMO has dropped far under the treasury backing. The process of building a new management structure and recruiting a new treasury manager takes time. The recent unwinding vote has shown that there is a larger percentage of wMEMO holders which would like to exit the DAO. To avoid these users voting towards achieving only short term goals which benefit them exiting, a rage quit proposal is launched which lets people exit the DAO through a predetermined pathway. It allows the DAO to continue with individuals which are aligned long term towards the success of the project.

Link to previous [DAO Discussion] and [RFC] thread:
https://dao.wonderland.money/t/rfc-offer-rage-quit-before-other-decisions-are-made/13879
https://dao.wonderland.money/t/proposal-offer-rage-quit-before-other-decisions-are-made/13438/1

Objective:
Lay out a plan and execute the Rage Quit option to allow wMEMO holders exit the DAO at a value that is close to treasury backing.

Provide a High Level Overview:
The Rage Quit process consists of two phases:

• I. Phase 1: Snapshot Governance
• II. Phase 2: Deployment of Rage Quit Contract

I. Phase 1: Snapshot Governance

The first phase consists of two snapshot governance votes.

1. WIP #5.1: Offer A Rage Quit Option to wMEMO holders

The goal of the first vote is to decide if the community wants to implement a Rage Quit contract which allows wMEMO holders to enter a whitelist and exit the DAO at a predetermined valuation. This WIP will allow the DAO to decide if a Rage Quit option should be implemented for individuals to be able to exit the DAO.
The snapshot vote will be posted as WIP #5.1 with the option to implement rage quit or not. The snapshot vote will last 7 days. After the vote is over, and if the results indicate that the DAO wants to implement the Rage Quit option, liquidity will be pulled, and all trading will be halted until the rage quit option is implemented.
The WIP snapshot has to include the backing price of wMEMO which token holders can expect to receive when using Rage Quit. With not more than 5-10% variance to this predetermined price.

2. WIP #5.2: Rage Quit Whitelist

A second snapshot vote for the Rage Quit whitelist will be held. The goal of the second vote is to create a whitelist and allow the treasury to prepare the funds and contracts according to the amount of wMEMO entering the whitelist. This extra data will increase the efficiency of the rage quit contract and lower slippage.
The Rage Quit Whitelist snapshot vote will last 4 days. wMEMO holders who wish to exit with their wMEMO tokens and receive their part of the treasury will need to vote YES on this snapshot.
By voting YES, your address will be added to the whitelist.
Once the whitelist snapshot has ended, a 48 hour window will allow the development team and multisig to assess the results and prepare the treasury for the Rage Quit.

II.Phase 2: Deployment of Rage Quit Contract

At this stage the development team has already announced the backing price calculation of wMEMO and shared it in the first snapshot vote. This value together with the whitelist data will be assessed and used to create the Rage Quit Contract. The contract will allow each whitelisted user to exchange their wMEMO with the predetermined backing price ±5-10% slippage.

The Rage Quit contract will be topped up with the amount needed for the entire whitelist to exit and will remain open for 72 hours.
After 72 hours, the Rage Quit contract will be halted and trading of wMEMO will start again. We are giving the development team a window of 24 hours to adjust the liquidity and resume trading of wMEMO.

Provide Low Level Details:
Each individual component of the Rage Quit Proposal will be listed in this section of the WIP.

Snapshot 1. WIP #5.1 Offer A Rage Quit Option for wMEMO holders:

This snapshot vote displays the backing of wMEMO and allows the DAO to vote if token holders should be allowed to leave the ecosystem through a Rage Quit Mechanism.

Snapshot Vote Duration:
7 Days

Changes to Protocol:
If the Snapshot passes, the DAO will move into a transition phase. All trading of wMEMO will be halted until the Rage Quit is completed.

Snapshot Text:
Should a Rage Quit option be implemented which allow wMEMO holders to exit the protocol at a predetermined backing price?

Link to Original WIP:
https://dao.wonderland.money/t/wip-5-offer-a-rage-quit-option-to-wmemo-holders/15176)

Voting Options:

• Yes, Offer a Rage Quit Option
• No, do not implement Rage Quit

Link to Snapshot poll for the proposal:

[WIP #5.1] Should a Rage Quit option be implemented which allows wMEMO holders to exit the protocol at a predetermined backing price?

Snapshot 2. WIP #5.2: Rage Quit Whitelist

This Snapshot will start as soon as Snapshot 1. WIP #5.1 has finished and the community voted for implementing Rage Quit.
wMEMO holders who wish to exit with their wMEMO tokens and receive their part of the treasury will need to vote YES on this snapshot.

Snapshot Vote Duration:
4 Days

Changes to Protocol:
wMEMO trading has been halted. The development team is observing the whitelist vote and actively building the contracts for the Rage Quit.

Snapshot Text:
The community has voted to implement the Rage Quit Option. You can read the details here: https://dao.wonderland.money/t/wip-5-offer-a-rage-quit-option-to-wmemo-holders/15176.

If you would like to participate in the RageQuit you need to enter the whitelist by voting YES on this snapshot page.

Voting Options:

• YES, add me to the whitelist
• NO, I do not want to participate in the Rage Quit

Link to Snapshot poll for the proposal:

[WIP #5.2] : Rage Quit Whitelist

Treasury Backing Price:

The development team is summarizing the treasury and will present a wMEMO backing price with a 5-10% maximum variance.
The details on the treasury and how much 1 wMEMO is backed by will be released and presented on the website prior to WIP #5 Snapshot.
The treasury consists of liquid and illiquid assets, for users to receive maximum benefit, the illiquid assets will not be added to the backing price since it would create a false/overinflated value for wMEMO.
The BSGG token is considered an illiquid asset and is therefore excluded from the backing price calculation.
Keep in mind that some of the treasury assets are volatile and the backing price can move upwards as well as downwards. Therefore, a variance of 5-10% from the backing price is accepted.

Rage Quit Contract:

After the whitelist vote has been completed, the development team will assess the data and announce the required assets necessary for the whitelisted wMEMO holders to exit. The multisig will get the treasury ready and will start the rage quit process within 48 hours from the ending of the whitelist snapshot vote.
The UI of the rage quit contract will show each whitelisted wMEMO address the capital that can be claimed for their wMEMO, respecting the 5%-10% variance from the original backing price. Each participant will be able to redeem their wMEMO against the calculated backing price in MIM tokens.

Start of Rage Quit:
Within 48 hours after the whitelist governance snapshot has been concluded.

Rage Quit Window:
The rage quit window will stay open for 72 hours to allow sufficient time for everyone that is whitelisted to claim their share of the treasury.

End of Rage Quit:
After 72 hours of the Rage Quit Window opening, the contract will close and a 24 hour transition period will start to allow the multi sig and development team to restart trading and add all liquidity.

[brentini]

So this vote will go up with in days now right?

[Catalyst]

So this is a vote to get whitelisted or I need to read it again in the morning sober?

Edit: I had to get sober.

[Steve]

I’ll be voting “No” to the rage quit option. I’d change my opinion if the RQ qption was restricted to those who’d purchased Time/wMemo prior to Sifugate, to prevent what is essentially arbing by buying low after Sifugate, then selling at a guranteed price/profit using RQ. And then buying back in to WL at it’s current price.

[Hijtan]

pretty much how I understand it too

[Afro]

if guys think voting NO on the ragequit would help time or wMEMO, u are wrong! Everyone buying last weeks would just sell, dumping the price back to 17k$ or even less. Ragequit on the other hand will decrease the amount of wMEMO circulating, letting everyone out who wants out! While increasing the value of wMemo since less wMEMO out there! Giving Memo a fresh new start, and then focusing on new WIPs! Danielessta & DCF & The Professor are for it! Don’t bet agains big brains…

[shwnboy]

ill be a no on this. All Olympus clones are down huge. The treasury can be used a lot more effectively to make frogs “whole” with patience

[BloodyStools]

This is the WRONG RAGEQUIT OPTION! The professor’s plan is MUCH better:

1. Shut down all trading and remove LP liquidity effective immediately. This will eliminate many of the worries from some frogs about whales and sharks that are currently not invested who try to game the system by seeing which way the vote goes and buying in at the last second to arbitrage. Don’t worry about those that bought in opportunistically after Sifu Gate and are still holding, as many have exited their positions in the run up to the vote ending anyway, given the uncertainty that abounds.
2. Have the Wonderland Team provide a clear calculation around the backing per wMEMO that rage quitters would receive. In the calculation, they should provide:

• the total circulating supply in wMEMO (converting Memo and Time positions);
• the DAO owned supply in wMEMO (converting Memo and Time positions);
• Non-DAO owned circulating supply (total circulating supply less DAO owned supply) (“Non-DAO Supply”); and
• The total asset and Treasury value including single sided assets, stripped LPs and BSGG airdrop, but not including the BSGG vested tokens, Cross of Ages allocation or native tokens (“Treasury Value”).
• wMEMO = Treasury Value / Non-DAO Supply.

The BSGG airdrop was equal to 500 million BSGG, which equates to 23.85% of the total owned BSGG by the DAO. The total BSGG asset value is approximately $90 million, which means that rage quitters will lose access to $67.5 million of asset value.

3. Allow a 48 hour window for rage quitters to claim. Airdrop all BSGG tokens to everyone during this 48 hour window (no more wen airdrop questions please…)

4. Once the rage quit swap has been concluded, shut down the LP and trading for another 2–3 weeks until new management is appointed to take over and the path forward is clear. For those that decide not to rage quit, there should be an APY multiplier during these few weeks where the reward yield is increased by 25–50% the normal rate (management should decide this figure).

5. Prior to reopening the LP, the DAO will burn all wMemo tokens from the rage quit swap and any other DAO owned tokens management sees fit to decrease circulating supply and have an effect on lifting price above backing.

[Degree0]

No. Post must be atleast 20 characters. No

[a79]

I’m voting against this proposal. If you wanted out, you should have already decided that.

[redcoatwright]

Allowing this is tantamount to ending Wonderland. Anyone in the comments, on the discord or on the subreddit that says otherwise is likely trying to arb their position for a profit.

It was clear from the first vote that we did NOT want to liquidate the treasury to pay back investors in Wonderland. Why is this proposal even showing up? It’s essentially the same thing.

[Brandon1]

i’ve waited the next morning, i’m still failing to grasp

[InfinitiesSin]

Why was this option used as WIP? This idea is trash and only benefits people who tanked WL and bought below backing. There were other ideas for “rage quitting” that were 100X better. No from me.

[chr1schan.eth]

I believe the option to “rage quit” is to simply sell your wMEMO and move on. We’ve already voted to NOT liquidate Wonderland treasury. I will be voting NO

[ali]

There were some other considerations mentioned by Dani on the discord like length of hold among other things for the rage-quit option. Why aren’t those mentioned… is this a free for all for the arbers?

[InfinitiesSin]

They are for rage quitting, but I highly doubt they are for the trash that was proposed in this WIP. There is a smart way to do rage quitting… this isn’t it. If The Professor is big brains, why don’t we vote for his rage quit option? That would be smart smart.

[scalatoreluigi]

I think rage quit option must be available only for long term holder who want to quit. So people who bought after Sifu gate have to sell wmemo to the Dao for the market price. Will it be more difficult for us? Probably. But it’s more important the amount of treasury.

[Neutronium]

Everyone voted and majority decided WL is here to stay. Now this vote is to determine what exactly? That members can still leave and get a snapshot price of wMEMO?
This seems contradictory to the decision already made. Next WIP should be on building Treasury and Wonderland 2.0 with revenue share model, not creating a means out for rage quitters. Add value to the token for the ones who have held the token and voted yes to keep wonderland first.

Rage quitters can quit whenever they want and a lot have. People remaining are the diamond handed fans or sharks waiting to get a bite of treasury.

[asdfasder]

At last, fully support. Will be voting yes.

[Kevkev_91]

Absolutely. This idea seems to prevent and erase many concerns regarding whales manipulating Im all for a revision of the OP proposal.