[Next Steps for DiamondDAO]

DiamondDAO community,

So it’s been brought to my attention by several community & team members that the DAO has lost faith in the project. People are upset, and sentiment is (generally) that there isn’t a viable path forward for the project in its current form.

My priority today is the same as it has been since mint, when I was asked to multisig the Diamond DAO treasury: help ensure the safety of community funds due to the risks associated with an anon, unknown team.

After speaking with @pikwik and @mai, as well as @rocket, I have come to the conclusion that we need to consider closing the project down and distributing the treasury holdings back to token holders. Recent developments around other OHM forks, and Wonderland in particular, demonstrate that this situation is not unique to Diamond DAO. But it is the most obvious option available.

To make sure that we are able to execute this, I asked @Rocket to personally transfer control of the contract holding funds raised from selling bonds. He changed the “manager” role from his personal address to my personal address (gabagool.eth) - txn is here:

https://etherscan.io/tx/0x835c9d0048bcd22a38f7cc49854461ff9c4feaf55cc48ed220451932280d9d45.

I also currently hold a large portion of the SLP tokens for the DMND-MIM pair. If the community determines that we should end the project the first step will be removing liquidity and transferring all Diamond DAO related assets to the DAO multisig with Rocket, Mai, Ushouldcashout, Cryptamurai, and myself as signers.

This is a shitty situation, and I’m not going to waste time casting blame. I do feel like I owe it to the Diamond DAO community to at least offer one alternative proposal.

The following proposal is an idea that PikWik, Mai and I discussed. It is not perfect, but I do think it has a real chance of success and would not even present it if I wasn’t confident in my personal ability, with community support, to successfully execute. Take a snapshot of DMND holders (including LPs) Pull liquidity, transfer all assets to the multisig, effectively shuttering Diamond DAO in it’s current form. Assemble a small team of trusted community members/friends (could be elected via snapshot vote, or whatever). I would lead this team, and PikWik has also offered to join. The team would actively manage the DAO treasury with the singular goal of increasing the $USD value of the holdings. The idea would be to gain back some of the value that DMND holders collectively lost due to the decrease in DMND token price. a. This would essentially turn Diamond DAO into a closed investment fund owned by DMND holders. The fund would operate with a large degree of flexibility, and the community would not vote on individual investments/trades, though of course we would be open to ideas and feedback. We would establish a schedule, monthly, quarterly, whatever, where the DAO would receive an update regarding the multisig holdings and any profits and losses. The DAO could use the schedule to periodically vote on continuing with active management, or dissolving and distributing assets to DMND holders. All details could be discussed and voted on in a subsequent snapshot should the community support this idea.

I’d add the following: I am not a member of the original Diamond DAO team, and I cannot speak for them. When @Cryptamurai and I were added to the multisig we each agreed to help advise the team. I have asked Cryptamurai if he would help actively manage the funds but he has not yet responded with certainty one way or another.

Ultimately I will do my job (ensuring the security of all treasury and multisig funds) no matter what.

So, the choices are as follows:

1. Shut down project and distribute the entirety of treasury to DMND holders (based on snapshot taken prior to this announcement)

2. Shut down Diamond DAO as an OHM fork, and empower Gabagool + a team to actively manage funds with the simple goal of increasing the value of the treasury and DMND rfv over time.
   Future vote will determine the details of active management

3. Do nothing.

Thank you for your consideration. -Gabagool