Use of Mint Proceeds for Next 2 Drops

Background

There have been 3 ICE Poker NFT drops which included 4 collections and raised 50 ETH (0.1 x 500 items), 125 ETH (0.25 x 500 items), and 250 ETH (0.25 x 1,000 items) each. The 425 ETH was converted to USDC and used to add to the DG DAO's USDC-ICE LP position which now sits at ~$6.3M. We expect to do 2 more drops this month.

Proposal

For the following two drops, give the DG Team discretion to use the mint proceeds across the following 4 areas:

-- ICE-USDC LP -- Buying Back ICE in order to burn it -- Providing New DG - ETH LP on UniSwap -- Providing New DG - Matic LP on QuickSwap

Rationale

Since the ICE Burned/Earned ratio of 0.6 is less than 1, we do need to use some revenue to buyback and support the price of ICE. Axie and other p2e ecosystems sustain at far lower ratios than 0.6, and this level is very sustainable as only a fraction of revenue will be used for buybacks. As we buyback, we don't want the DAO to be front-run and it's useful to have some discretion to react to market conditions regarding exactly how much to buyback. The majority of the funds would still be used to provide liquidity.

Prior to the token redenomination, we incentivized Old DG-ETH LP with DG rewards and had ~$7M in LP in that pair. Today, we have ~$3.2M in New DG-ETH LP and ~$2.6M in Old DG-ETH LP. We expect the Old DG LP to trend toward 0 as holders migrate to New DG. In order for new buyers and indexes to make large DEX transactions, we view > $5M in New DG-ETH LP as a target level. We might also want to add some liquidity to New DG on QuickSwap since there is only $0.6M there. Of the 4 sections, New DG-Matic LP is the least urgent so additions pending available funds.

Finally, this proposal restricts the discretion to 2 drops so that the community can weigh in on the Team's decisions here and we can revisit how we want to handle future drops as a DAO.

Links

UniSwap New DG-ETH LP: https://v2.info.uniswap.org/pair/0x3df70e5b6edead5277590d3de5731d17f46e043b

UniSwap Old DG-ETH LP: https://v2.info.uniswap.org/pair/0x44c21f5dcb285d92320ae345c92e8b6204be8cdf

QuickSwap New DG-Matic LP: https://info.quickswap.exchange/pair/0x71bd159cf9136d038a60f10118741dfcb10c3111

QuickSwap ICE-USDC LP: https://info.quickswap.exchange/pair/0x9e3880647c07ba13e65663de29783ecd96ec21de