Introduction

This Proposal outlines the formation of a Liquidity Council within the Blockswap DAO. The primary responsibility of the Liquidity Council will be to facilitate the liquidity of kETH, dETH, BSN and all Blockswap affiliated tokens throughout DeFi. They will stimulate demand for kETH, dETH, BSN, and all Blockswap tokens via DeFi integrations and voting, and uphold the best interests of the DAO in token distribution. The Council will manage the BSN tokens allocated to the liquidity initiatives and be solely responsible for self-management and regulation.

Motivation

For dETH and BSN to flourish in the DeFi ecosystem, the Blockswap DAO needs effective DeFi integration strategies. Creating a Liquidity Council can streamline these strategies, ensuring proper token distribution and finding DEXs, money markets, LP pools, etc. Proper distribution can increase the visibility of Blockswap protocols and encourage further staking by creating a demand for dETH.

There are a few members of the Blockswap DAO who are already actively voting on incentives and finding places for Blockswap and its tokens to trade. These members should be rewarded and empowered to continue their activities.

Joining the Council

Existing Grant Council Members: Current Grant Council members can opt-in for the Liquidity Council by signaling their intent on the Blockswap DAO governance forum at gov.blockswap.network. They will be automatically admitted into the Liquidity Council.

Other Community Members: Other members interested in joining the Liquidity Council will need to apply. The applications will be accepted through the DAO governance forum and should include the following:

• Who you are and how to find you in the community.
• What makes you an excellent addition to the council.
• Wallet address to add to the multisig.
• Your involvement with the Blockswap community so far.
• Your ability to provide votes, find incentives, or places for Blockswap tokens to be utilized.
• Anything else you think the community might find valuable to know about you.

Application Period

Once there are three members on the council it will be self-governed. With less than three members, the council will not receive any tokens and will be considered pending.

The DAO will have open applications for the Liquidity Council to be reviewed one week after the Temperature Check passes a Snapshot vote. Any applications will be reviewed by either the community at large or the Liquidity Council depending if there are three or more members in the Council at the time of review. Applications can always be considered after the one-week period has concluded.

Starting and Concluding Council Operations

• The Council will start operating as soon as there are at least 3 members. This is when the 6-month duration begins.
• At the end of the 6 month period 500,000 BSN may be dispersed from the allotted funds to each member’s wallet. An additional allotment for members who contributed through voting or integrations may be distributed at this time.
• At the end of the 6 months, the Council will either return any remaining tokens to the DAO or, through a vote, decide if they would like to continue the disbursement of BSN tokens and communicate this decision with the DAO. Keep in mind some members could leave while others stay.
• In the event that all tokens are distributed prior to the 6 month period concluding, then the allotted tokens for members can be distributed and the council can request additional tokens from the DAO.

Implementation

The tokens held by the Liquidity Council will be:

• The remaining BSN from dETH integration incentives. Originally this number was 100,000,000.
• 50,000,000 specifically to incentivize with kETH via the LST Optimizer. These will be distributed after kETH is in mainnet.
• The remaining tokens not distributed and not allocated to Stakehouse Emissions participants. The Silverback Tier is distributed and the GMI Tier is yet to be distributed. After distribution, the Liquidity Council will receive these. There were 100,000,000 BSN originally allocated.

Current tokens in focus for the council:

• kETH
• BSN
• dETH
• sETH (if applicable)

Responsibilities and Benefits

• Receive 500,000 BSN for acceptance into the council.
• Assign BSN to each Liquidity Council member for each successful integration or contribution with a maximum of 75,000 BSN per task, integration, vote, etc.
• Facilitate the liquidity of Blockswap tokens throughout DeFi and identify opportunities for BSN and kETH incentives.
• Act with the best interests of the DAO in mind, particularly during token distribution.
• Engage in active dialogues with other Council members and the wider DAO community to consider their thoughts.
• Participate in SAFE multi-sig transactions for token disbursement and oversee the distribution of BSN tokens.
• Maintain self-regulation, handle new member applications, and act if any member is not aligning with the Council's principles by removing them from the Council without distribution of BSN tokens.
• Provide votes on other platforms when applicable.
• Create rules and guidelines for the Liquidity Council if not outlined here.

Conclusion

This proposal outlines the formation of a Liquidity Council. The proposed Council will be responsible for maintaining liquidity, distributing tokens, and ensuring the effective operation of liquidity initiatives. Their ultimate goal will be to drive demand and ensure the successful integration of Blockswap tokens in the DeFi ecosystem. By leveraging community expertise and dedication, the Liquidity Council will play a pivotal role in the success of the DAO and its protocols.