zComb DAO Proposal AKA ZCDP 2024-5

Comb founder has proposed to repay Hives with their creation cost in $COMB, and is looking into both ROI (Return On Investment ie in USD purchase price terms) and ROT (Return On Token ie in $COMB purchase price terms).

This raises numerous issues for zComb DAO and puts current $COMB holders and zComb DAO members at a significant disadvantage.

Hives have on average emitted 2.6 $COMB for each $COMB it cost to purchase them. By reimbursing all hive owners with the $COMB used to purchase the hive, each hive owner would receive 3.6 $COMB for each $COMB used to purchase a hive. The extreme $COMB emission rate was the reason for significant price action between Feb 2022 and June 2022, leading to significant losses to many members of zComb DAO who believed marketing promises and locked their $COMB for governance rights and a revenue share of the protocol. View details on hive emissions here: https://docs.google.com/spreadsheets/d/1EIicuub1d39Q0_zj-cwWtsoT0FCPxtNCW-kRYtf0S00/edit#gid=1320088635

Furthermore, the Comb team was paid in hives. With the team receiving hives and $COMB payouts from these hives throughout the duration of the project, it would be an extreme conflict of interest for the team to suggest a further payout to the team.

By minting $COMB to reimburse hive purchasers and team members, the protocol is expected to mint under 91,872 $COMB and reduce the payout to $COMB holders from an expected $3.75 per $COMB to $2.88 per $COMB. By rejecting this aspect of the Comb founder’s proposal, each $COMB holder who has locked $COMB for zCOMB governance rights will increase their payout by 30% on their locked $COMB.

That said, the Comb NFT marketplace has been utilised for the sale and purchase of hives. It would be remiss to not consider ROT for purchasers of these hives. As such, zComb DAO could include a partial reimbursement of $COMB to purchasers of hives from the marketplace. For example, a user purchases a Top Bar Hive for 20 USDC when the $COMB price is $2. User then receives 1 COMB before $COMB emissions are halted. Therefore, the reimbursement to this user would be (purchase price in $COMB at the time) minus ($COMB received) = (20/2) - (1) = 10 - 1 = 9 $COMB reimbursed. While it reduces the payout to existing zComb DAO members as a whole, it is an appropriate compromise for the sudden collapse of Comb.

However, in view of Comb Founder's most recent announcement discussing a reimbursement in ROI terms, we will also include an option to approve his proposal:

" Given that the total deposit value exceeds your total claimed value, any hives under that wallet will be able to be redeemed for their creation cost in $COMB (ie 9 $COMB for a Top-Bar). We will conduct a snapshot of hive ownerships on May 4th, 2024. Transferring of hives from this point onwards will not be eligible for hive redemptions, the hives must be returned to the owner address that was snapshotted on May 4th, 2024.

What is considered a deposit: USD value of COMB used during Hive creation USD value of tokens used during Hive purchases on the Marketplace

What is considered a claim: USD value of COMB claimed directly to wallet before Hive migration USD value of COMB claimed directly to wallet after Hive migration USD value of COMB claimed to zCOMB lock USD value of COMB claimed to Podz/Capsules USD value of tokens used during Hive sales on the Marketplace

The calculations above do not consider sales into liquidity. We can only collect data on inflows and outflows of COMB Protocol contracts as it is difficult to properly classify what is considered a “sale” on the blockchain. "

Vote “Completely Reject Reimbursement” to reject any reimbursement of any hives in any form as described in this proposal.

Vote “Accept Partial Reimbursement” to accept reimbursement of hives purchased on the NFT marketplace as described in this proposal but reject reimbursement of any other hives in any form as described in this proposal.

Vote "Accept Founder's Proposal" to accept reimbursement of hives in $COMB in line with ROI calculations as proposed by Comb Founder

Vote “Accept Complete Reimbursement” to accept complete reimbursement of hives regardless of ROI / ROT