Outline Wonderland’s quarterly redemption process and implementation.
Links to previous discussions:
[RFC] - Quarterly Redemption Option for Holders
[DAO Discussion] Quarterly Redemption Option for Holders
This Wonderland Improvement Proposal (WIP) will define the details of the three major components required for quarterly redemption to be implemented.
1. WIP #9 vote to establish if quarterly redemptions should be implemented or not.
2. Establish the redemption process.
3. Assets considered as part of redemption.
The goal of this vote is to decide if the community wants to implement a quarterly redemption option which allows wMEMO holders to enter a whitelist and redeem at a predetermined valuation (redemption price). This WIP will allow the DAO to decide if a quarterly redemption option should be implemented for wMEMO holders as proposed below.
The snapshot vote will be posted as WIP #9 with the option to implement quarterly redemptions as described in the governance framework. After the vote is over, and if the results indicate that the DAO wants to implement the quarterly redemption option, the core team will take the steps necessary to ensure the redemption process is implemented.
Snapshot Vote Duration:
- Yes, implement quarterly redemptions
- No, do not Implement quarterly redemptions
Link to Snapshot poll for the proposal:
WIP #9 Snapshot Vote
If the result of the WIP #9 Snapshot vote is in favor of implementing quarterly redemption, the following process is to be implemented.
The core team will present a summary of the treasury, including a breakdown of the redemption price per wMEMO to the community no later than 24 h prior to each whitelist snapshot.
A link to the breakdown should be added to the whitelist text. The breakdown should be easily available to everyone. A post on the forum is recommended.
If some assets will not be redeemed as USDC (or selected stable coin), the pricing used for the calculation of the redemption price breakdown will be taken as close to the announcement as possible.
Keep in mind that some of the treasury assets are volatile and the redemption price can move upwards as well as downwards until the treasury has been fully prepared. Assets not converted to a stable coin will continue to vary in price.
A Snapshot votes for a redemption whitelist will be held on a quarterly basis, starting with “Q3 2022 - Redemption Whitelist” and will continue in the future with Q4 2022 - Redemption Whitelist, Q1 2023, Q2, etc.
- The whitelist vote will start 9 days before the redemption period.
- The vote will last 7 days.
- The redemption price per wMEMO has to be included in the description of the snapshot.
wMEMO holders who wish to be eligible to redeem their tokens and receive the determined amount associated with their wMEMO will need to vote YES. By voting YES, their address will be whitelisted for the redemption period of that quarter.
If you would like to participate in the QX 20XX redemption, vote “YES, add me to the whitelist”.
Redemption price: $XX XXX
Link to summary of treasury information and breakdown of the redemption price::
QX 20XX - Redemption Breakdown
For more details on quarterly redemptions, refer to [WIP #9] - Quarterly Redemption Option for Holders.
- YES, add me to the whitelist
- NO, do not add me to the whitelist
Once the whitelist snapshot has ended, a 48 hour window will allow the core team and multisig to assess the results and prepare the treasury for the redemption period.
Once the treasury has been prepared, the redemption contract will be topped up with the amount needed for the entire whitelist to redeem.
- The redemption contract will be open for 72 hours.
- After 72 hours, the redemption contract will be closed
- The assets left in the contract will be returned to the treasury.
The UI of the redemption contract will show if the connected address is whitelisted, the redeemable amount of wMEMO, the redemption price and the amount of redeemable assets.
Redeemed wMEMO tokens will be taken out of circulation and burned.
Whitelisted addresses should be able to redeem a portion of their total redeemable amount.
- June 21st, treasury summary/redemption price breakdown announcement
- June 22nd to June 28th, whitelist period.
- June 29th to June 30th, treasury preparation.
- July 1st to July 3rd, redemption period.
- July 4th, the contract is closed and assets returned to the treasury.
The Treasury Manager will manage liquidity as required throughout the redemption process.
Illiquid assets, assets allocated to the revenue share farm, and a portion of VC 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.
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.
**Up to 25% of any VC assets that are considered liquid will be redeemable.The final percentage allocated will be determined by the Treasury Manager and announced as part of the redemption price prior to the redemption period.
VC assets: - For the purposes of this WIP, VC assets are defined as both liquid/illiquid assets generated from seed funding investment from the treasury.
After discussions with the community, moderators, and acting Treasury manager, to address concerns from long term holders regarding treasury depletion, a $100mm “halt value” has been enacted. If the total treasury value drops below $100mm, a new Quarterly Redemption WIP will need to go up for a vote to determine a new “halt value” established via the governance process. If the community decides not to continue the Quarterly Redemption at that time, redemptions will cease.
If the halt value is met during a redemption period, the redemption period will not be halted until it is completed for the quarter. If a new WIP passes with a new “halt value”, redemptions would resume the following quarter unless indicated otherwise in the proposal.
Thanks to SkyH, Tikkamasalas, Nal X, Kyle, and everyone in the discord/forum for input and help writing the WIP.