CMP-2021/3 – ACO Flow Optimization

We hereby propose to make optimization changes regarding the transaction flow of the Auto Cashout function (ACO) with the goal to better maintain the available BNB within the BNB/MONSTA pair in the PancakeSwap Liquidity Pool, and therefore decrease price impacts for sales and buys to attract new quality investors, partners, and collaboration opportunities while maintaining a healthier price action.

Status Quo The current cash-out system drains BNB liquidity from the LP and puts pressure on the MONSTA price for constant deflation to occur, while CAKE is purchased for the Gravity Vault at a suboptimal price after the inactive wallets are cashed out.

Auto-Cashout (Current State) Currently, 70% of MONSTA of inactive wallet holdings are being bought back by the protocol with BNB from the LP on PCS, causing the MONSTA price and LP to decrease with a certain impact. 20% is then used to buy CAKE after the price is already impacted, which means less potential CAKE gets bought for the Gravity Vault reserve. 100% of all bought up MONSTA is burned out of the LP and 2.5% of the cashed out MONSTA amount gets minted into the function caller wallet as a reward.

• Buyback 70% of MONSTA of an inactive holder with BNB from the Liquidity Pool (goes to the inactive wallet in the form of BNB) • Buy CAKE worth 20% of an inactive wallet MONSTA holdings, using BNB from the LP, and add the $CAKE to the Gravity Vault • Mint MONSTA worth 2.5% of MONSTA of an inactive holder and send it to the Cashout caller wallet as a reward • Leave BNB worth 10% of MONSTA of an inactive holder in the LP (7.5% Liquidity “addition”, 2.5% to account for the caller reward) • Burn 100% of the converted MONSTA out of the LP

Auto-Cashout (Target State) After 50 days of inactivity, the protocol sells 30% of the inactive holder's MONSTA for CAKE (10% more CAKE than currently) without impacting the MONSTA price beforehand and directly adds CAKE to the Gravity Vault at a much better rate. Then the equivalent amount of 70% of the MONSTA remaining in the inactive wallet will be burned out of the LP without touching the inactive holder's wallet ensuring continued deflation of MONSTA. To prove activity, a 25% refund can be claimed by the wallet owner via the dashboard within 50 days. The function caller reward of 2.5% will be minted into the caller's wallet.

• Sell 30% of MONSTA of an inactive holder for CAKE (goes to the Gravity Vault) • Burn 70% of MONSTA out of the LP, equivalent to the remaining holdings in the inactive wallet • The remaining 70% of MONSTA holdings will stay untouched in the inactive wallet until it becomes inactive again • Mint MONSTA worth 2.5% of an inactive users holdings and send it to the cashout caller's wallet • The concerned inactive holder has 50 days to claim a 25% refund from the dashboard

Conclusion (ACO) Compared to the Current State, the Target State will preserve 60% more liquidity in the LP. In addition, it will add more CAKE value to the Gravity Vault, have less impact on inactive holders' investments while ensuring continued deflation, and have an overall more streamlined and less complicated system. An added automatic refund option will further lead to less uncertainty about users' MONSTA holdings. Further benefits will see the attraction of new investors, the opening of new avenues for potential collaborations, and easing of negative liquidity pressures allowing the LP room to grow organic and healthy through transaction fees and market purchases That being said, as it is already unlikely to reach 1M supply within 2 years' time, the proposed changes will rule out this possibility entirely, leaving the cycle end solely time-based.

• At a positive voting outcome we will update the code within the following 7 days after the voting has ended, followed by an additional proposal regarding a 3rd Strike System for handling subsequent "cashouts". A renaming program will thereafter take place to replace the current name "Auto-Cashout" with a more accurate name. • At a negative voting outcome we will formulate a new proposal with input from the community