INTRODUCTION

The DEXTF community is growing and we want to involve it more in the project.

DIP4 is the first step in this journey and an important one.

Moreover, with our fair launch, we created a prosperous community of supporters but we have a large amount of tokens that are idle waiting to be distributed via liquidity mining. They are currently not providing any value to the protocol or its current token holders.

We think we can do better: we hence propose to put these tokens to work.

CREATE A TREASURY AND USE IT FOR PROTOCOL DEVELOPMENT

Now it’s the time to better define how to use the 15% of token reserved for “community driven allocation”. We propose to use them as a Protocol Treasury with 15m tokens.

DEXTF Token Governance

Currently, DEXTF protocol does not have an existing Treasury as tokens were never sold privately. Its creation will provide resources to accelerate the growth of the project. Also we would like to stress that this Treasury will belong to the Protocol and hence, indirectly, to all $DEXTF token holders.

We also propose for the protocol users to be able to make proposals (DDP = DEXTF Development Proposal) for the protocol development. These can be for marketing, blockchain development, UX/UI improvement, audits, etc.

Proposed DPP will be activated through a governance vote via Snapshot.

For full details of the DDP governance please refer to the Medium article.

DIP-4 Treasury Creation

Once a DDP is activated everyone can submit Offers, the cheapest 5 proposals will be submitted for voting to the community, and the winner will be awarded the DDP.

For the avoidance of doubt, there can be many proposals but only the cheapest 5 will be included in the vote, this is to maintain the process pragmatic and manageable and to make sure that people developing the protocol who are from the community (and are happy to hold the tokens for longer), have an advantage as compared to third parties.

Protocol level token swap

To address the idleness of the $DEXTF tokens waiting to be distributed, we request to the community to authorize the swap of some or all $DEXTF tokens held in the Treasury for ETH and/or major Stable Coins with DEXTF Supporters (DS). This swap will occur OTC ONLY to avoid price fluctuations on DEXs.

DS will lock their tokens for a period of time and they will receive a discount proportional to the length of lockup (i.e. initially set at [10%] per quarter).

PURPOSE, USE OF THE ASSETS AND USE OF THE PROCEEDS

The Purpose of the Treasury assets will be:

• To finance the protocol development
• To generate returns to increase the size of the Treasury
• To stabilize the $DEXTF Price
• To reward $DEXTF stakers with proceeds
• To implement a $DEXTF buy backs policy with proceeds

The Purpose of the Treasury can be extended or reduced by community Governance.

The Assets owned by the Treasury can be used for activities that have a direct positive impact on the protocol, the ecosystem and/or the $DEXTF token holders:

• Investing in XTF Funds (without receiving $DEXTF rewards, to not dilute investors)
• Providing liquidity on DEXes such as Uniswap or SushiSwap (without receiving $DEXTF rewards, to not dilute investors)
• Arbitraging XTF Funds price discrepancies
• $DEXTF price stability in the open market (similar to how corporate treasuries buy their stock back when they perceive it has become too cheap)
• Providing liquidity for capital intensive products (Floored Tokens, for example, require zero coupon and options)
• Invest in Stable Coins, ETH, WETH or WBTC for yield generation
• Pay for protocol development initiatives (DDP = DEXTF Development Proposal)

Uses of the Assets can be added, removed or modified by community Governance.

The proceeds of the Treasury’s investment will be used to:

• A portion of the returns, initially set to [Tres_Return_distribution = 0%] will be distributed to $DEXTF stakers (once the staking contract is ready), with an increasing reward going to stakers that locks their DEXTF for a longer period of time. DS will be considered as having staked their DEXTF
• The Treasury may also buy back $DEXTF tokens on the open market and a portion of these tokens, initially set to [Tres_Burn = 0%], will be burned to create token supply deflation

Uses of the proceeds can be added, removed or modified by community Governance.

CONCLUSION

We, therefore, ask the community to approve DIP4 in order to strengthen DEXTF, its community and ecosystem and its token holders.