SIP-03: Remove liquidity from L1

Proposal: The team will remove the DAO-created LP position on L1 Ethereum. Contributors will use the SMOL and ETH to kickstart development of Wiz’s live streaming on Abstract. Treasure is going to conduct “fast experiments” here to test potential market fit, making Wiz (and SMOL) the centerpiece.

Rationale: SMOL is putting down roots on Abstract. We should aim to become the top non-Pudgy-related memecoin on Abstract. Being on one chain only is less confusing for users and signals higher commitment to becoming Abstract builders. Treasure has contributed ~$70,000 to the liquidity position for SMOL on Abstract.

In addition, SMOL does not need liquidity on two chains. The original assumptions behind creating the LP position on L1 and Treasure Chain were invalidated. Volume on SMOL is extremely low on L1. SMOL has found more market interest in less than a week on Abstract than the better part of a year on L1.

It would be smarter for the DAO to use the SMOL and ETH in the L1 LP position to start accelerating development on products that are garnering attention, specifically Abstract streaming. The Smol v2 tokenomics created a SMOL allocation to the Treasure team to build products for the Smol community. However, building with this SMOL requires selling onto the community at a low market cap. It is better to use ETH for this purpose, currently available through the redundant L1 liquidity position, and “HODL” SMOL.

Plans for use of SMOL and ETH are as follows:

1. Use the ETH to pay for Wiz’s upkeep costs, specifically its voice generation bill, with the goal of running his stream 24/7 for the community
2. Gift the SMOL to Wiz to give away to his stream watchers and $SMOL promoters on Twitter using his X access