[Proposal] VSP-2 - Dissolve

1

[VSP-2] Dissolve Proposal

Summary

Given the non-innovation progress of Vesta in almost two years and no clear roadmap. We are proposing dissolving the Treasury Multisig.

Background

Vesta was launched as a borrowing protocol with the main goal of bringing innovation into the ecosystem. Since the release, vesta only successfully deployed the interest rate module, the saving module (soon deprecated) and soon, the governance module. The hearthUpgrade also known as V2 doesn’t bring any protocol-changing features but a different interest rate model and depreciation of Saving Module with Single Stability Pool.

Motivation

Given the management at Vesta hasn’t found any product market fit after all this time, and still doing “research” doesn’t show a strong long-term vision for the DAO.

Specification

Vesta Treasury Worth - $10,414,603.27

Circulating Supply at Snapshot 129356661 - 25,514,788.88 VSTA

  • Vsta can be valued at ~$0.408

  • Take Snapshot as soon as proposal is agreed upon (the evaluation might change)

  • Founders can redeem their vesta at ~$0.408, only the claimed vesting can be redeemed. All current vesting streams will be canceled and locked

We have four types of creditors

First Creditors: LBP investors

Second Creditors: Angels

-Refunded if they have tokens

-if they sold VSTA they are not owed anything, no redeeming

-Allow redemption of their initial investments 1 to 1 refund or they can redeem with holders last

Third Creditors: LP / VSTA Holders

-Redemption Priority for Vesta key holders, would need a snapshot

-Redemption at FDV)

Fourth Creditors: Founders

-Redeem at FDV

Order of redemption:

LBP → Angels & Vesta Key Holder → Holders

Current fee generation would be used to to support vesta V2 at LTS

Creditors would be redeemed in ETH.

Claiming would be done by a contract that is developed by Vesta.

Excluded Addresses (We counted any staked vsta & pending to be claimed):

Addresses Description
0xa684cd057951541187f288294a1e1C2646aA2d24 Vsta Token
0x64343594Ab9b56e99087BfA6F2335Db24c2d1F17 VST Token
0xefD767F55534b09617150434d9e35BFf4b1C96B0 Vsta Vesting Contract (minus ready to be claimed)
0x626420aE6986A4941DF830F57775aa7df4aAC9D3 Community Issuance
0x65207da01293C692a37f59D1D9b1624F0f21177c Liquidity Pool
0xb891586271C15816225ECced3BdEA5ac463A2C4E Old MS
0x4A4651B31d747D1DdbDDADCF1b1E24a5f6dcc7b0 Admin MS
0xC9032419AA502fAFA107775DCa8b7d07575d9DB5 Treasury MS
0x5f153a7d31b315167fe41da83acba1ca7f86e91d VSTA LP Holder
0xBA12222222228d8Ba445958a75a0704d566BF2C8 Balancer

While commenting on this proposal, please use the provided template.

Template to comment

: Status (Retail / LBP / Angel / Team)

: Opinion

: Preferred proposal (VSP-1 or VSP-2)

: Estimate amount of VSTA

For: Vesta V2 will be released and the treasury multisig will be dissolved
Against: Do nothing, vesta continues operating

1 Like
2

Status: Retail

Opinion: Dissolve proposal looks promising as everyone will get fair value. Do we have voting open for accepting this proposal. Thanks

Prefered Proposal: VSP 2 - Dissolve

Estimated Vsta - 30k tokens

2 Likes
3

Not crazy about the option, but if its choosing between founders dumping 2m+ tokens on the market and redemption I would side with the redemption option.

Estimated Vsta - 20k tokens

2 Likes
4

Same boat as this man. I vote for VSP 2-Dissolve

5

Status: Retail

Opinion: I respect the courage of the founders to accept that dissolving the project rather than needlessly burning the treasury is the right decision. I’m supportive of this proposal if 1/ there is a clear detailing (+ numbers) of the execution of this proposal and 2/ it doesn’t include an unfair snapshot block detrimental to free market participants (remember that if the price hovers near book value, this will allow holders to exit before the redemption is live, which is a nice option to have for everyone).

Preferred proposal: Dissolve

Estimate amount of VSTA: 500k tokens

6

Hey all

I am an angel investor in Vesta and an angel investor in multiple companies in crypto and traditional markets. I’ve also started companies and sold companies in the traditional market.

This situation happens more often than we think. Multiple co-founders having different visions and leaving or splitting. This is unfortunate but not an isolated case.

Now, I am 100% against this proposal on both side. Let me explain myself. The 2 co-founders, Atum and Midnight, are looking to “rage quit” and get paid at the same time. This proposal makes no sense and is most likely illegal.

When you start a company, a lot of people take risks. Angel investors take risk by giving you money in exchange for a potential return on investment. Founders take risk by giving their time for a potential return on investment. Normally in the traditional market, founders and investors get equity or options. These shares are worth nothing until the company sell to a bigger entity or does an IPO. In crypto, everyone is lucky. This process is accelerated with token creation.

The price of Vesta token before this proposal (which makes people buy the token, which is bad since they will lose money) was 0.14$.

The 2 co-founders are asking to leave at 0,40 for no reasonable reason. If they were in the traditional market, they would only be able to keep their equity and hope the third founder brings the company to success so that they can sell their share. We also know that 90% of companies that have founders that leave will fail. Which means the success of the company after they leave is really low and therefore they would have a really low chance of getting anything from the company.

The normal way to wind down a company is well known and fair for everyone based on the risk they took during the project. In traditional market, the founder would take the remaining cash (around 10M$ for Vesta) and send back the money to angel investors with a pro-rata of what they have invested first. The team gets nothing since their equity is valuable only if the company is successful.

Now, this is crypto and like I say above, we are lucky. The creation of a token already gives everyone a chance to get some money.

This is my proposal:

  • Burn every team unvested token and token that are not yet in circulation.
  • Return the amount of money to all angel investors. In total since the treasury is worth more then the initial investment.
  • Take the LPB snapshot and reimburse everyone the amount they invested in the LPB. LPB investors are like small angel investors that believe in the project.
  • Buy every token of the team at 0.14$ (This is the lucky part, normally team gets 0)
  • Buy the remaining token on the market at the fair market value. Create a Rage Quit page for everyone to get part of their money back.

I hope both parties will make the right choice to protect their reputation and wind down the right way.

1 Like
7

Yes there will be a voting, but right now we are looking at feedback to apply modification before opening any voting.

1 Like
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Status: Team Member

Background:
I joined Vesta in April 2022 as Community & Awareness Lead, so not a founder. Since then, I have been involved in a wide range of responsibilities, encompassing community management, marketing, content creation, governance, and more. My commitment to Vesta has been total, and I’ve consistently been available seven days a week, every day of the year.

Opinion:
Firstly, I want you to know that I wasn’t even informed about this situation by Atum or Midnight. I found out about it just like everyone else did this morning. Although there have been clear issues with our shipping speed due to multiple changes in our roadmap, I was never told about such problems by the founding team. I’m genuinely shocked by this turn of events taking place in public.

I understand now how serious this situation is and the desire to move on, but remember, our team isn’t just about the founders. There are others like me who have a lot at stake here. We’re talking about real jobs and real people.

Imagine making a decision like this within just 48 hours. I mean, you could potentially lose your job in less than a week because of an internal dispute. So, I’m kindly requesting more time to think about possible solutions or, at the very least, to receive more clarification on what’s happening.

4 Likes
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I created a topic for discussion here with the aim to increase discussion quality.

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(post deleted by author)