Introduction

Alchemix has been accumulating TOKE since it gained an ALCX Token Reactor as part of the first Collateralization of Reactors Event (C.o.R.E). The third C.o.R.E event is currently running and will determine the next 5 protocols to receive a Token Reactor. [ https://medium.com/tokemak/c-o-r-e-3-voting-begins-this-monday-may-2nd-1687ff492199 ] There are now less than 4 days remaining before the vote closes on Monday, May 9 @ 7PM UTC.

Alchemix now holds over 200k TOKE and as one of the largest holders, has significant voting power (nb. 1 staked TOKE equates to 6 votes). This voting power is attractive to protocols that are competing for a Token Reactor, and they are therefore offering voting incentives to voters.

TLDR;

It is proposed to authorise the Alchemix core team, together with the Alchemix BizDev SubDAO, to allocate the full amount of Alchemix TOKE votes according to the best offers available in the final day(s) of C.o.R.E 3 voting.

If approved, the team will provide a follow-up post detailing final voting allocation, as well as the rationale behind the distribution.

Rationale

Broadly speaking, there are three options available to Alchemix for the use of its voting power:

1. Make one or more OTC deals with other protocols, where Alchemix is offered a benefit in return for votes. Typically this will be a fixed amount of another token per vote, but creative deals may arise. These deals are bespoke and will likely require that Alchemix does not subsequently exchange the received token for something else, but will also typically mean that Alchemix would not be subject to vote dilution (i.e. the incentive offered is fixed, but the number of votes for any given protocol is variable, so the per-vote reward claimable by Alchemix will be dependent on how many other votes the protocol ends up attracting).

Relating to OTC deals, Paladin [ https://www.paladin.vote/ ] has already proposed an offer of Paladin tokens to the value of $0.12/vote. The Paladin deal also includes an obligation for Paladin to find an equal or better deal elsewhere should they not need the votes. https://forum.alchemix.fi/public/d/322-vote-for-paladin-in-tokemaks-core-event-3

2. Pursue incentive via the redacted Hidden Hand platform [ https://hiddenhand.finance/tokemak ] (formerly known as Votemak). These incentives come with no obligations and so can be readily exchanged for any other token at the discretion of Alchemix. However, Hidden Hand incentives are subject to vote dilution when the number of votes allocated to a particular protocol increases.

3. Delegate to the Alchemix core team and BizDev SubDAO to select an appropriate mix of options (1) and (2) based on the offers available at the time.

Voting in C.o.R.E 3 is gasless, and it’s possible to change votes repeatedly up until the event is over. This means that a large number of votes are likely to be withheld until the final hours, at which point the jostling for positioning will probably occur.

Given that the voting landscape may change rapidly on the final day and even in the final hours, the lead time involved in handling a snapshot vote implicitly means that it’s not feasible to have the final voting allocation determined directly by governance if we wish to be responsive to additional offers that arrive in the final hours or days of the vote.