Congruent DAO TAP-005 Entity Asset Acquisition Framework

TL;DR: Proposal to grant the Core/Treasury teams the flexibility to privately negotiate the acquisition of treasury assets at favorable terms.

Congruent may have opportunities to acquire assets at below-market value while assisting entities (such as DAO’s) to wind down their assets and dissolve their communities (essentially, a buyout). Creating a proposal on a case-by-case basis may result in opportunities being lost due to slow reaction time or may result in reduced margins due to increased competition should our intentions be made public too early. As such, this proposal will lay out a framework by which the Core Team and the Treasury Team may work autonomously to maximize outcomes for Congruent.

1. Minimum return on assets will be 5% or $1,000,000.

• This means that the sum of all expenses (inclusive of transaction costs, asset costs, development funds, and other operational expenses) associated with the acquisition, will be below the value of the funds acquired and will leave at least the lesser of 5% profit margin or $1M profit.
• Target entities would likely accept terms that are below book value in return for a faster and smoother wind down and to avoid dealing with things like slippage on transactions involving large holdings or with time-locked assets (e.g., ve tokens)

2. Targeted entities will have treasury assets consisting of stablecoins and other assets consistent with Congruent’s goals for yield generation and acquisition of governance.

3. Any assets acquired that have not already been formally whitelisted will either:

• Have whitelisting proposals created as soon as the deal is finalized. Should any newly-acquired assets fail the whitelisting process, those assets will be liquidated and converted to whitelisted assets.
• Be liquidated for whitelisted assets as soon as Congruent takes possession of them.

4. Under no circumstances will Congruent holders be diluted as part of an acquisition.

• Generally speaking, we will avoid using treasury Gaas reserves as part of any deal terms offered as this would likely create selling pressure for Gaas tokens.
• Should an exchange of Gaas tokens be part of an agreement, any incremental increase in circulating supply of tokens will be offset by the incremental increase in Treasury assets such that the ratio of Treasury assets per Gaas token will remain unchanged (or improve).

5. Assets will be exchanged via smart contract so that, if the terms of the agreement are not met within the prescribed timeframe, funds will be returned. edit 1 - minor rephrasing for clarity/grammar edit 2 - replaced ‘DAO’ with a more general ‘entity’ so as not to unintentionally restrict the scope of the proposal.

Vote Details: Minimum required quorum - 8% of circulating supply Minimum required affirmative vote to pass - 60% in favour Users who hold vGaas are able to vote.

The voting lasts for 48 hours. Yes - Represents “Agree” No - Represents “Disagree”