Temporary Reduction of Monthly Dividend Payouts to Strengthen Financial Foundation

Purpose:

To propose a temporary reduction in the monthly dividend payouts to holders for a period of 6 months to retain more earnings, build a stronger financial foundation, and ultimately maximize future dividend payouts. Additionally, to propose an increase in dApp staker rewards to attract more stakers, who are currently the backbone of our income.

Background:

The DAO currently allocates a portion of its cash flow to monthly dividend payouts to holders. While this provides immediate benefits, a more strategic approach would involve temporarily reducing these payouts to retain earnings. This would allow the DAO to reinvest in its growth, infrastructure, and other initiatives, leading to greater long-term value for holders.

Proposal:

We propose a temporary reduction of the monthly dividend payouts to holders for a period of 6 months before increasing them gradually according to income stream improvement. The retained earnings will be used to strengthen the DAO's financial foundation, which will enable higher and more sustainable dividend payouts in the future. Additionally, we propose an increase in dApp staker rewards by 10% (see allocation below) to attract more stakers and boost our income.

Details:

Current Dividend Payout Structure: A fixed percentage of the DAO's monthly cash flow is currently distributed as dividends to holders.

Proposed Reduction:

• Temporarily reduce the dividend payout percentage by 50% for a period of 6 months before gradually increase them according to income stream improvement. The retained earnings will be allocated to strategic investments and financial reserves.

• Increased dApp Staker Rewards: This increase aims to attract more stakers, who are crucial for our income generation.

Allocation Split:

• After Proposal passed: 25% NFT (for 6 Month period) 30% dApp staker 45% DAO

Warning : If proposal is approved, the above % will be applied to August dividend which will be paid mid september"

• After 6 months: 30% NFT 30% dApp staker 40% DAO

• After 12 months: 35% NFT 30% dApp staker 35% DAO

Strategic Allocation of Retained Earnings:

• Reinvestment in Growth: Fund new projects, improve existing infrastructure, and enhance the DAO's capabilities.
• Financial Reserves: Build a stronger financial cushion to ensure stability and mitigate risks.

Expected Outcomes:

Enhanced financial stability and flexibility. Increased capacity for strategic investments leading to long-term growth. Higher potential for future dividend payouts once the financial foundation is solidified. Increased attraction and retention of dApp stakers, boosting/securing our income.

Benefits:

• Long-term Value Creation: By retaining more earnings and reinvesting them strategically, the DAO can achieve greater growth and value creation, benefiting holders in the long run.

• Financial Stability: Building a robust financial foundation will protect the DAO against unforeseen challenges and economic fluctuations, ensuring sustained operations and growth.

• Future Dividend Growth: A stronger financial position will enable the DAO to increase dividend payouts in the future, providing greater returns to holders over time.

• Increased dApp Staker Participation: Higher rewards for dApp stakers will attract more participants, increasing our income and overall financial health while bringing us closer to Tier 1.

Supporting Data:

The following graph illustrates the projected impact of the proposed temporary reduction on future dividend payouts. The graph shows a 6-month reduction period, followed by a gradual increase in dividends as the retained earnings lead to enhanced growth and profitability.

Conclusion:

Temporarily reducing the monthly dividend payouts for 6 months, increasing dApp staker rewards, and adjusting the allocation splits are strategic moves that will allow the DAO to build a stronger financial foundation. This will result in greater long-term value for holders through higher and more sustainable dividend payouts.

The council recommend to approve this proposal to ensure the continued growth and success of our community.

Voting:

Please cast your vote on this proposal within the designated voting period as your participation is crucial for the continued growth and success of our community.

• Voting period : 14 days.
• Required support to pass : 2/3 majority
• Minimum quorum : None as all non-voter forfeit their right to decide

Note that while "abstain" choice is proposed, it will not be counted in the 2/3 ratio as it is, in the essence, letting other decide for you