LIP-31: Community Takeover & Transition Plan

Author: @eliph_

Abstract

Following the completion of GIP-1 and GIP-2, Lizard Labs will be dissolved and no operational team will remain. This proposal initiates a community-led transition, transferring all control, including socials, communications, partnerships, and intellectual property and assets, under a new DAO Council elected by Ethlizards holders.

Motivation

Without an active team, DAO assets risk stagnation. This proposal ensures transparency, coordination, and community control, giving Ethlizards a real opportunity to rebuild under fair and decentralized governance.

Core Points

1. Transition of Control

All DAO related assets and infrastructure (excluding the portfolio treasury until the distribution process concludes) will be transferred under community management. This includes:

• Official Discord, website, and X (Twitter) account
• Communications and partnerships
• Any Lizard Labs products, IP, brand and other assets

Immediate Actions (if this proposal passes):

• Upon approval, the current team will hand over all socials, Discord, communication channels and any other assets to Eliph, who will act as the initial transition lead.
• The current team will temporarily retain custody of the portfolio treasury to ensure a fair and transparent distribution process (see Section 2 below).
• The current team will continue managing $LIZ unlocks, distribution and burns as previously planned (see GIP 1 and 2).

2. Portfolio Distribution Process

Following the successful vote, Ethlizards holders will have 60 days to register their wallets via a snapshot vote.

At the end of this registration period:

• The Portfolio Sub-DAO treasury will be divided proportionally based on the total number of registered Ethlizards.
• Each registered Lizard will represent an equal share of the portfolio.

Example: If 1,000 Lizards are registered, each Lizard represents 1/1,000th of the portfolio.

After registration closes:

• Registered Holders are then eligible to send their Lizards to the treasury to redeem their proportional share of the portfolio.
• Holders may also choose to keep their Lizards and their share of the portfolio will remain in the Ethlizards DAO portfolio.

Once all redemptions and distributions are complete, the portfolio treasury will be transferred from the current team to the new DAO Council.

3. DAO Council

The DAO Council will consist of five unpaid community members, serving voluntarily for 8-month terms, renewable by DAO vote.

Initial Formation:

• Following the handoff to Eliph, community elections will be held to select the remaining four council members.
• Eliph will serve as the initial lead during the transition period.

Membership and Governance:

• Council members serve without compensation or financial incentives.
• The community may vote to replace any council member at any time if there is sufficient negative sentiment or lack of performance.
• The remaining council members may also vote by majority of 3 out of 5 members to remove and replace any inactive or non-performing member.
• Undoxxed members may serve on the council, but only doxxed members can access the DAO multi-sig for security reasons. Discord permissions may be limited for the same reason.

Responsibilities:

• Manage DAO funds, communications, and partnerships
• Approve expenses and ensure transparent operations
• Propose future initiatives and governance improvements

4. Oversight & Transparency

From the moment this proposal is approved, all actions and spending by the DAO will be fully transparent and publicly recorded.

A dedicated transparency channel will be created where every expense, payment, or operational cost, no matter how small will be documented and available for the community to review. Not including GIP 1 & 2 activities as that is already outlined in those proposals.

Examples:

• Blue-checkmark or social verification costs
• Developer, legal, or infrastructure expenses
• Any $LIZ-related or DAO-funded spending

Additionally:

• All development, web, and operational expenses must be pre-approved by the DAO Council.
• The previous team will cooperate to provide any remaining access credentials or technical information required for the transition.
• No new payments or contracts may be initiated without explicit DAO approval.

Important Note: There is a timeline overlap with GIP-1 and GIP-2 activities. While the proposals are not in direct conflict, they do have overlapping timelines and permissions - thus operationally, this LIP excludes any GIP 1 & 2 activities, which must be completed and transitioned for this LIP to take full effect.

Vote Options

---

YES — Approve the community-led takeover, initiate the 60-day registration and fair distribution process, establish the 5-member DAO Council, and transfer assets and governance to the community.

NO — Leave assets and governance undefined following GIP-1 and GIP-2.