SLURP-19 | SmartCon 2024 Hong Kong Treasury Allocation

Abstract

We propose allocating $44,500 from the stake.link Treasury to sponsor SmartCon 2024 in Hong Kong. This sponsorship will enhance the visibility of stake.link branding and distribute informational content to conference attendees. This proposal seeks approval from the stake.link DAO.

Rationale

To make an informed decision regarding this request for funds, it’s essential to provide context on Hong Kong’s role as a Web3 innovation hub, its relationship with Chainlink Labs, and the benefits of sponsoring SmartCon.

Hong Kong as a Web3 Hub

Hong Kong is a leading financial center in Asia, known for its innovation in finance and technology. Here are some key statistics from 2022:

-Raised over 100 billion HKD in IPOs. -Largest issuer of Asia International Bonds for seven consecutive years. -Assets Under Management (AUM) of 4 trillion HKD, growing at 30% over four years. -Number one in Asia for insurance density.

Hong Kong’s financial success is due to its common law legal system, free flow of capital, zero-fee currency convertibility, and strategic positioning near major cities like Beijing, Seoul, and Singapore. Additionally, Hong Kong benefits from preferential access to mainland markets and investors.

Hong Kong is also becoming a global hub for Web3, blockchain technology, and the tokenization of real-world assets. Notable developments include:

-The October 2021 policy statement on virtual asset development. -Successful tokenized securities projects like the HKSAR tokenized green bond and UBS Tokenized Warrant. -Stablecoin Issuance Framework. -Licensing regime for crypto exchange operators. -Wholesale CBDC pilot.

In November 2023, the Hong Kong SFC also issued circulars on tokenized securities, treating them as traditional securities with digital controls. These guidelines especially support and recognize the need for blockchain agnostic approaches as well as recognizing various blockchain types.

Hong Kong’s Relationship with Chainlink Labs

At SmartCon 2023, Chainlink Labs’ CEO Sergey Nazarov hosted a fireside chat with Joseph Chan, Under Secretary for Financial Services and the Treasury of Hong Kong SAR. They discussed Hong Kong’s role in global financial markets and how Chainlink Labs supports their digital asset adoption.

In a recent article by TechCrunch (https://techcrunch.com/2024/05/06/hong-kongs-crypto-ambition-starts-garnering-global-attention/), it was revealed that Chainlink Labs was invited by Hong Kong government officials to host SmartCon in the city, indicating a deep relationship. High-ranking Hong Kong officials and notable figures in the tech industry, capital markets, and Web3 will attend SmartCon 2024, providing valuable exposure for stake.link.

Benefits of stake.link Sponsorship

Sponsoring SmartCon will provide extensive visibility for stake.link to key figures in Tech, Web3, Finance, and the Hong Kong government. Hong Kong’s focus on tokenization requires cross-chain interoperability, a core offering in the Chainlink Platform, but by no means the extent of the needs Hong Kong and its regulated entities will have, which will include the full suite of the Chainlink Platform as listed below.

Stake.link as the first-mover third-party delegated liquid staking protocol for the Chainlink Ecosystem will benefit from this exposure. This sponsorship will help stake.link continue to grow its presence and influence in front of major industry and government figures.

Outline of the Sponsorship

We request that the DAO allocate $44,500 of Treasury funds that will cover the following:

-Tote Bag Insert: Every SmartCon attendee will receive a tote bag with a stake.link brochure detailing the protocol’s value proposition and contact information to explore potential synergies and collaborative efforts. -Chainlink Labs Closing Party Support Sponsorship: stake.link branding will be prominent at the conference’s closing party, attended by prominent conference attendees. -LToadNFT Pre-Conference SmartCon Event: stake.link branding will feature at this expanded pre-conference event, increasing visibility among key community members and broader Web3 audience. **

**In the event of the LToad Sponsorship not moving forward, all SDL allocated for the event will be returned to the stake.link Treasury

Payment Mechanism

Core Contributor of the stake.link protocol LinkPool will front all costs associated with the proposed sponsorship to ensure payment is made in a timely manner.

Upon passage of this SLURP by the stake.link DAO, a one-time transfer of $44,500 worth of SDL will be transferred to Core Contributor LinkPool and sold via algorithmic trading over a 90-day period.

Ending Thoughts

Stake.link has established itself as a key player in the Chainlink Ecosystem, and this sponsorship will reinforce its position as the leading third-party delegated Chainlink Staking Platform. The benefits of this sponsorship are poised to be significant, leveraging the presence of influential attendees at one of the premier annual conferences in the industry.

We ask the DAO to approve this expenditure to capitalize on the opportunities presented by SmartCon 2024.