8DAOIP - 12 - Proposal for the Closure of 8DAO and Pro-Rata Treasury Distribution

Creator:

8DAO Core Team

Date: 10 December 2025

Voting Platform: Snapshot

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1. Summary

This proposal seeks community approval to formally close 8DAO, discontinue all operations, and distribute the DAO treasury to token holders pro rata, based on the token snapshot taken on 8 December 2025 at 12:00 PM UTC.

Voting Period (via Snapshot.org)

10 December 2025, 12:00 PM UTC to 13 December 2025, 11:59 AM UTC (Duration: 3 days)

Upon approval of the proposal, members will be required to confirm their receiving wallet address with the team before funds are sent.

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2. Rationale

Following 8DAO team discussions, the DAO recognizes that continuing operations is no longer beneficial. A structured and fair closure ensures:

• Transparent and accountable process
• Proportional distribution of value
• No treasury waste
• Respect for all token holders

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3. Proposal Details

3.1 DAO Closure

If approved by token holders:

• All DAO operations and expenditures will stop.
• Core contributors will execute the closure plan.

3.2 Closure-Related Costs

• A maximum of 7,000 USDC will be reserved from the treasury to cover necessary closure expenses, including but not limited to:
  • Infrastructure shutdown (domains, tooling, indexing, hosting)
  • Gas fees and transaction execution costs
  • Labour costs for administrative, operational, and technical execution of the DAO closure and fund distribution
  • Administrative and operational support for distribution

3.3 Treasury Distribution

• 100% of liquid treasury assets will be distributed to governance token holders.

• Snapshot time:

  8 December 2025 – 12:00 PM UTC

• Distribution formula:

  Member Payout = (Member’s Token Balance at Snapshot / Total Token Supply at Snapshot) × Treasury Assets

3.4 Wallet Confirmation Requirement

Before receiving the distribution:

1. Each token holder must confirm their receiving wallet address by communicating with the 8DAO team.
2. Token holders may choose to:
   • Use the same wallet where tokens were held at snapshot
   • Provide an alternate wallet address for receiving funds (e.g., safer cold wallet)
3. Only after a member confirms their address will 8DAO proceed with sending funds.
4. The 8DAO team will send the funds manually to ensure accuracy and proper verification.

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4. Voting Parameters

Parameter	Value
Token Snapshot	8 Dec 2025 – 12:00 PM UTC
Voting Start	10 Dec 2025 – 12:00 PM UTC
Voting End	13 Dec 2025 – 11:59 AM UTC
Voting Duration	3 days
Voting System	1 token = 1 vote
Quorum Requirement	300,000
Passing Threshold	>50% simple majority

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5. Voting Options

• YES — Approve DAO closure & treasury distribution based on snapshot
• NO — Reject closure; DAO remains active

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6. Execution Steps (If Approved)

1. Announce approval results
2. Freeze all treasury expenditures
3. Confirm snapshot results (8 DEC, 12 PM UTC)
4. Publish a final treasury asset in ETH
5. Collect wallet confirmations from all eligible token holders
6. Verify identity/wallet ownership as needed
7. 8DAO team sends the proportional funds to each confirmed wallet
8. Revoke multisig permissions & shut down governance modules

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7. Risks & Considerations

• Members who do not confirm wallet addresses may delay their payout
• If treasury contains illiquid assets, conversion may be required
• Manual distribution may extend processing time
• Unclaimed distributions after 6 months may be held, redistributed, or burned
• Gas fees may affect final amounts received

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8. Conclusion

This proposal outlines a transparent, fair, and member-first dissolution process for 8DAO.

By using a fixed snapshot and requiring wallet confirmation, the DAO ensures accurate and secure fund distribution to all eligible token holders.

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Appendix A — 8DAO Treasury Summary

Fund Raised

Pre-Season 0 (Feb–Mar 2022)

497,500 USDC

Current Treasury Assets

• 71.58 ETH
• 1,235 USDT

Investments

1. NFT Fund
   • 83,008 USDC approved in Season 1 proposal (Jul–Sep 2022)
   • Current estimated value: approx. 15 ETH
2. Snag Solution
   • 20,000 USDC approved in Season 1 proposal (Jul–Sep 2022)
   • Currently illiquid; no active secondary market for valuation
3. Thirdverse
   • 50,000 USDC approved in Season 2 proposal (Oct–Dec 2022)
   • Currently illiquid; no active secondary market for valuation
4. NFT TinyTap
   • 16,539 USDC approved in Season 2 proposal (Oct–Dec 2022)
   • Currently illiquid; no active secondary market for valuation

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Appendix B — Member Questions & Clarifications

Q1: Who are the holders of the top two largest 8DAO token balances? Are they eligible for compensation?

• The largest holder is the 8DAO treasury itself, which does not receive any distribution.
• Excluding the treasury, the total circulating token supply is approximately 3.6 million tokens.
• The second largest holder (~1.6M tokens) belongs to the founding team from the inception of the DAO.

Founding Team Proposal:

• 0.8M tokens to be distributed to Pre-Season 0 investors on a pro-rata basis
• 0.8M tokens to be distributed equally among all Pre-Season 0 investors, with each investor receiving the same amount

This approach aims to balance proportional fairness with equal recognition of early supporters.

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Q2: How will illiquid investments be handled? Can they be auctioned to members?

At present, these investments:

• Either do not have a clear market valuation, or
• Are equity or company shares rather than on-chain tokens, making transfers difficult

Auctioning these assets to members is unlikely to generate meaningful value and would introduce significant operational complexity.

Team Recommendation:

• Continue to monitor these assets off-chain
• If liquidity or exit events occur in the future, any proceeds will be distributed based on the current allocation framework