OP re-posted due of issue with edit permissions: [Deprecated] [Proposal] VSP-6 Fair Path Rage Quit - #8 by sunshineplaza
Given the sentiment expressed in the snapshot vote initiated last week, I’d like to submit a first proposal to explore a fair path forward.
I urge everyone to put their own judgment aside during the administration of this matter. We are here to collectively find a solution that serves the objectives supported by all parties involved.
This proposal’s final form should be detailed and equitable, according to the sentiment expressed by the co-founders and the tokenholders.
I have noticed that legal was raised as a concern and I looked at what other protocols did in order to put forward a proposal. I also took into account the fact that Mikey, as the sole remaining co-founder of Vesta Finance, would like to have the opportunity to pursue the development of a new oracle-less lending platform and capitalize on what has been invested until now to get a shot at achieving product-market fit.
In summary, this proposal combines the rage quit objective with the opportunity for Vesta Finance foundations to support an organization in its goal of achieving product-market fit.
Give VSTA holders the option to rage quit by opting in to Fork DAO, a smart contract that will allow them to exchange their VSTA for a pro-rata share of the Vesta Finance treasury (distributed in USDC and ARB).
For each VSTA that is rage quitting by confirming its opt-in on Fork DAO smart contract, the Fork DAO smart contract will receive assets from Vesta Finance treasury corresponding to the book value of the VSTA (in USDC and ARB) that opted-in and transfer it to the rage quitter.
- 1-month rage quit opt-in period during which all circulating VSTA (including vested VSTA) can be exchanged for a pro-rata share of the Vesta Finance treasury (corresponding to the VSTA book value, distributed in USDC and ARB)
- Remaining Vesta Finance treasury assets will support the funding of the remaining team; if 70% of the circulating VSTA decides to rage quit, this would leave $3,291,873 of funding for the remaining founder and team
Despite not achieving product-market fit, Vesta Finance has invested a significant amount of resources in order to assemble an elite team, acquire valuable industry knowledge and build brand awareness. Out of the 3 co-founders, 2 want to leave but 1 wants to pursue the opportunities he deems worth it.
This proposal suggests that tokenholders that support Vesta Finance new developments have the opportunity to keep their exposure, while the remaining management team gets ample funding to support the runway and achieve product-market fit. VSTA tokenholders that are enthusiastic about the future developments will therefore continue to provide resources needed for the release of V2.
Currently, the Vesta Finance treasury holds the following assets (links to treasury wallets below):
- 7,901,567 USDC & USDT, valued $7,901,567
- 2,713,675 ARB, valued $2,177,656 as of today
- 269.07 ETH, valued $431,952 as of today
- 315,412 VST, valued $315,412 as of today
- 33.51 gOHM, valued $100,234 as of today
- 13,923.33 BAL, valued $46,086 as of today
- Minus liabilities
The total treasury assets value is $10,972,909 as of today.
Links to the treasury:
- (a - Admin) Link - DeBank
- (b - Treasury) Link - DeBank
- (c - Protocol Owned Liquidity) Link - DeBank
- Bundle view: Link - Zapper Bundle
The current circulating supply of VSTA is:
- 100,000,000 VSTA Total Supply
- (-) 71,945,131 VSTA in the treasury (a)
- (-) 2,884,695 VSTA in the admin (b)
- (-) 690,884 VSTA in the protocol-owned liquidity (c)
- (-) 1,077,356 VSTA unvested (4,041,806 VSTA in the vesting contract - 2,964,450 VSTA claimable)
The VSTA circulating supply is 21,073,799.14 as of today.
This puts each VSTA book value at $0.521 as of today ($10,972,909 / 21,073,799.14).
As soon as this proposal is passed and approved, the following steps will be executed:
- Fork DAO rage quit funding: protocol-owned liquidity will be withdrawn, and all the Vesta Finance treasury assets except ARB will be converted to USDC.
- Fork DAO smart contract and front-end: Fork DAO will have 2 weeks to develop and deploy a smart contract and frontend to allow VSTA tokenholders to opt-in to the rage quit option and receive VSTA book value per VSTA that opts-in.
- Rage Quit Period Opening: the rage-quit period will last 1 month after the first opt-in is possible. At the end of this 1 month, there will be no more possibility to opt-in to Fork DAO rage quit.
This proposal will remain open on the forum for comments for 7 days before proceeding to snapshot.
As a VSTA holder, what will I need to do to participate in the rage quit?
You will need to opt-in to the rage quit option with your VSTA. You will receive VSTA book value per VSTA that you opt-in to the rage quit option.
I believe in the new project led by Mikey, can I keep my VSTA to stay exposed to its future success?
Yes, there is no forced participation in the rage quit process.
- What are the liabilities for the 1 month during which the rage-quit will be open?
- Should a solution that would involve a separate entity (Fork DAO) with its own governance token, multisig, treasury and snapshot be explored rather than the current one?
- What would be the process to confirm that Fork DAO smart contracts are approved by Vesta Finance?
- This is an opt-in rage quit solution, which implies that the remaining treasury value at Mikey and its team disposal is unknown. Should a solution with a fixed amount of funding be explored? - this solution would use the separate entity model, which would receive the rest of the Vesta Finance funds and become claimable by VSTA holders who migrated to this separate DAO governance token.
- What are the requirements to ensure there will be no service interruption or degradation of service for Vesta Finance users during the 1 month of rage-quit availability?
- In favor of the Opt-in Rage Quit
- In favor of a fixed amount transferred to a separate entity that will organize the rage quit