Proposal: Unlocking Exponential Growth with Berachain

Proposal Description:

This proposal builds upon the foundational governance framework established by D2 DAO and aims to position the organization for exponential growth within the Berachain ecosystem. Leveraging strategic opportunities and emerging partnerships, this proposal seeks to acknowledge key developments, adapt governance structures, and outline critical actions required to scale D2 Finance operations.

The following summary of actions is to be considered for formal approval:

1. Acknowledge Strategic Opportunity with Berachain

Details: D2 DAO acknowledges that Berachain represents an unprecedented growth opportunity for D2 Finance. As an early participant in the Berachain ecosystem since April 2024, D2 DAO has positioned itself as a pivotal protocol in Berachain.

Key Points:

• D2 DAO’s involvement with Berachain is foundational to its future growth strategy.
• The upcoming Boyco strategy, named Kodiak++, will solidify D2 Finance’s role in the ecosystem.
• eBERA, a game-changing innovation, and other strategies will be released shortly after Berachain mainnet, unlocking new avenues for value creation.

Supporting materials:

• Berachain was inevitable: eBERA will be game-changing https://medium.com/@D2.Finance/berachain-was-inevitable-eda-will-be-game-changing-328990394da0
• Berachain Is Ultrasound Honey: D2 Finance and Kodiak Will Go Ultrasound Together https://medium.com/@D2.Finance/berachain-was-inevitable-eda-will-be-game-changing-328990394da0

2. Acknowledge Missed August Deadline and Plan Forward

Details: D2 DAO acknowledges that the August 2024 milestone for scaling operations was not met due to delays in Berachain’s launch. With Berachain’s imminent launch, the DAO is uniquely positioned to capitalize on the ecosystem’s exponential growth potential and accelerate its trajectory as a leading DeFi protocol.

Key Points:

• Full-scale contracts with Ayers Rock, the BVI-based service provider managing D2 Finance strategies, will be deferred until specific growth metrics are achieved, ensuring strategic alignment and maximum flexibility.
• Ayers Rock’s current provision of services to D2 Finance, even at a financial loss, underscores its strong commitment to supporting the DAO’s vision and long-term success. This arrangement allows Ayers Rock to remain agile and explore additional pathways for sustainable operations while maintaining its high-quality support for D2 DAO.
• This interim phase prioritizes rapid data collection, operational agility, and strategic experimentation to position D2 DAO for sustained growth and informed decision-making regarding long-term agreements.

3. Issue EDA Token (Berachain-Native ERC-20)

Details: D2 DAO will issue EDA, a transformative native token on Berachain, designed to unleash the full growth potential of the ecosystem and establish D2 DAO as a top protocol in all DeFi.

Key Points:

• The issuance of EDA represents a pivotal milestone for D2 DAO, aligning seamlessly with its legal framework and governance principles.
• EDA tokenomics will integrate the most innovative aspects of Berachain’s ecosystem and HyperLiquid’s proven aspects, creating a robust model for long-term sustainability.
• This token will catalyze liquidity, incentivize participation, and amplify wealth-effect dynamics.
• By issuing EDA, D2 DAO will solidify its role as a leader in the next wave of DeFi, setting new standards for growth, adoption, and ecosystem alignment.

Supporting materials:

EDA Wealth Effect: Study Hyperliquid, Study Berachain PoL https://medium.com/@D2.Finance/eda-wealth-effect-study-hyperliquid-study-berachain-pol-f65b2f7c7375

4. Launch Ranger NFTs on Berachain

Details: D2 DAO will replace the temporary Arbitrum-based governance tokens with Ranger NFTs on Berachain. These NFTs will not only enable governance but also unlock exponential value accrual opportunities for participants aligned with the protocol’s success.

Key Points:

• The Ranger NFT initiative will establish a new governance framework that rewards active participation.
• D2 Rangers squads will receive exclusive EDA airdrop along D2 Partner squads
• Rangers who actively contribute will gain exponential value compared to passive participants.
• This initiative sets a strong foundation for aligning protocol incentives with long-term believers and active contributors.
• Current Rangers are already positioned as key stakeholders in the protocol’s governance and growth, while new participants have a unique window of opportunity to join this exclusive group and reap the rewards.

5. Geoblocking and Whitelisting Requirements

Details: To accelerate data collection and adoption, D2 DAO will temporarily relax geoblocking and whitelisting requirements during this growth phase while ensuring adherence to applicable legal standards.

Key Points:

• Access to the platform will be expanded, but the dApp’s disclaimers and restrictions will remain active to mitigate legal and operational risks.
• D2 DAO will ensure compliance with all applicable regulations and will promptly address any legal or regulatory requirements communicated by relevant authorities.
• This temporary relaxation is intended solely for growth and data collection purposes, with ongoing evaluations to ensure that the approach remains consistent with applicable legal obligations.

6. Plan for a New Vote Prior to Airdrop

Details: The token generation event (TGE) for EDA is approved in principle. However, a subsequent governance vote with Ranger NFT native of Berachain will be required before the EDA token airdrop to finalize distribution details and explore the potential tokenization of Ranger squads.

Key Points:

The governance vote will ensure community alignment on distribution mechanics and Ranger squad tokenization, enhancing the protocol’s decentralized decision-making framework.

Disclaimer: Addresses 0x12f1412fECBf2767D10031f01D772d618594Ea28 and 0x7568614a27117EeEB6E06022D74540c3C5749B84, despite holding temporary voting tokens, have sold their xD2 holdings and are no longer considered D2 Rangers. Consequently, any votes cast by these addresses will be deemed invalid.

Legal Notice: This proposal is intended to provide a framework for scaling D2 DAO operations within the Berachain ecosystem. The outlined actions are subject to modification and do not constitute a binding commitment.

D2 DAO is a non-profit organization established under the laws of the Marshall Islands. It does not offer asset management services or hold ownership of any funds, multisig wallets, or other financial assets. D2 DAO’s sole operational role is the ownership and management of the decentralized application (dApp) hosted at the domain d2.finance. This dApp provides hosting services for non-custodial vaults across multiple blockchain networks.

Stakeholders are encouraged to consult with independent legal and financial advisors to understand the risks and implications of participating in these initiatives. Any decisions made pursuant to this proposal are made at the stakeholders' own discretion and risk.****