Changes in the DR Structure

Proposal

The following steps to be carried out by the DRC Foundation:

1. To remove the s1 and s3 Vault Sets from use. a) Disable future deposits b) Move to an ‘archive’ section c) Eventually remove completely from the site

2. To update the s2 Vault a) Rename to s1 b) Change the weighting to 90% USDC, 5% ETH and 5%BTC

3a) Provide ongoing external and community driven incentives to depositors to the DRC Vault: a) Weekly distribution to 1 random address: 50,000 DRC b) Monthly distribution to 1 random address: 250,000 DRC c) Quarterly distribution to 1 random address: 500,000 DRC d) NFT Drops (i.e. Hashmasks, Spunks, AI Art, Wicked Craniums and more) e) Provide the ERC-20 addresses of DRC Vault users to other DRC community members that want to distribute rewards

3b) Dependent on the following criteria: a) The wallet address must have an active deposit in the DRC Vault b) At least 50,000 DRC must be deposited to qualify for the Weekly and Monthly DRC Rewards c) At least 1,000,000 DRC must be deposited to qualify for the Quarterly DRC Rewards d) At least 100,000 DRC must be deposited to qualify for the NFT Rewards e) The deposit for monthly rewards must be for at least 30 days uninterrupted f) The deposit for quarterly rewards must be for at least 3months uninterrupted

Rationale

The reasons for the above proposal are as follows:

1. The s1 and s3 Vaults are routed through Uniswap v2 liquidity and during the period of v2 and v3 migration, it is uncertain whether projects will remain on v2 or move. If they move then the Vaults may experience liquidity issues. Further, there are unclear regulatory guidelines for DeFi investment protocols at present and this may present a challenge for DRC’s compliance.

2. The s2 Vault contains highly liquid assets only and is a hedging allocation set, not an investment proposal. The additions of BTC and ETH are to help offset inflationary forces. The s2 Vault provdes great utility for DRC users that may want to hedge the market conditions.

3a) The DRC Vault is solely a visible storage Vault, and alone produces no rewards for holders. The initiative proposed both rewards the DRC supporters and also drives forward the community structure that is the focus for this quarter.

3b) These criteria are proposed to drive value into the DRC market and to ensure that only committed holders are eligible for rewards.