Revised Balance Transition Vote

Introduction

After the results of the recent snapshots, FIP-0008 and the community proposal, it was brought to light that an adjustment to FIP-0008 was needed. After careful consideration, we believe that we have found a middle ground that could be more appealing to the community at large. We have therefore amended FIP-0008 to be FIP-0008.5 (https://www.balance.capital/fip-0008-5-vote-for-new-balance-tokenomics) for consideration, which aligns with the feedback we have received so far from our engaged community.

FantOHM

While we recognize that the primary concern raised by the community relates to the lack of redemption of FHM tokens for Risk-Free Value (”RFV”), we also acknowledge that many members of our community do wish to join us on this new journey. In order to find a balance between these two concerns, we’ve come to the conclusion that those community members who do not wish to join us on this journey should be allowed to exit the protocol at RFV if they wish. The estimated RFV per FHM is dependent on market conditions and asset value at the time of redemption and is subject to change. The final redemption price received by holders might be greater or lower than this.

The FHM dApp will be updated to allow for this redemption, which will be open for 1 or 3 months, depending on the vote result.

ONLY WALLETS THAT HOLD FHM PRIOR TO THE BLOCK HEIGHT IMMEDIATELY PRECEDING THE RELEASE OF THIS SNAPSHOT VOTE will be able to redeem their FHM for RFV. Importantly, all wallets that vote for option #2 or #3 for this proposal will be whitelisted and can claim their share of the treasury through a redemption mechanism. All wallets that vote for #1 or abstain (or do not vote at all) will be able to swap their tokens 1:1 for the new BLNC token and agree to become an investor under the terms of the new tokenomics proposal. Any money remaining in the treasury will be allocated to Balance.

This measure is put in place to prevent arbitrage between the FHM market price and RFV. The date on which this redemption will be made available will be announced closer to the time.

The team believes that this approach allows long-term holders that transition over to continue the journey and to receive a greater long-term benefit as the redemption for RFV will lead to a decrease in circulating supply. The remaining token holders will therefore have a greater share of the post-RFV supply which will increase their share of the profits generated by the protocol.

Duration of the RFV Redemption

The team is giving holders a 3 month redemption period option to vote on, however during the course of this period DAO expenses will still need to be paid which will affect this redemption value.

As such, we are allowing holders to vote for either a 1 month or 3 month redemption period. A shorter redemption period will lead to fewer expenses having to be paid and will therefore mean a greater RFV. The team will implement the redemption period voted upon by the majority of token holders. This means that all holders who voted for RFV, regardless of whether they voted for the 1 or 3 month redemption period, will be able to redeem for RFV.

At the time of launching this proposal, the expected RFV values (and their calculations) are listed below. Note that these values are not final and will likely change based on market movements.:

RFV paid within 1 month: $ 2.1 RFV paid within 3 month: $ 1.9

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Products Development Pre and Post Vote

Understanding that the community is equally excited about the future products and developments, based on the community's excitement and feedback, the team will continue during the voting process to complete the development for Ryze. This will allow the team to bring to market, irrespective of the outcome of the vote, an exciting new product so that Balance will hit the ground running.

To ensure the protocol's growth and success, this will bring about a new phase with a bang and allow holders to begin to reap the rewards of all the development efforts over the last year. While the transition to Balance has been a long one, it will most certainly be an exciting new era for all.

The development of Liqd and our contribution to the e-commerce partnership will continue once the vote outcome has been determined and if needed the implementation of a redemption mechanism. As the development of these platforms are ongoing, they still require more development time and will not be completed once the redemption process is concluded, if there is one. This also will allow the team to reach the goal of having Ryze ready once the transition to Balance has been completed, giving the new BLNC token utility.

The launch of Ryze

The binary options and future financial products platform, Ryze, will become the sole focus for the team during the transition phase to Balance. FantOHM dApp will be stripped back to provide only the essential functions required for the duration of the redemption and token swap periods, once complete it will be removed from the product portfolio. The portion of the treasury that remains after the FHM redemption will be ported to the new protocol Balance.

FHM swap to BLNC boost

FHM token holders who wish to join us on this new journey will be able to swap their FHM for BLNC on a 1-to-1 basis, this swap functionality will be made available on the FHM dApp.

As an added incentive for those who choose to continue with the new protocol, during the redemption period, token holders who swap their FHM for BLNC will receive a 5% boost when swapping from FHM to BLNC. This means that they will receive 1.05 BLNC for every 1 FHM token swapped.

Transitioning from FantOHM to Balance

If this vote passes, then the following will take place: FHM holders who wish to join us on the Balance journey will be able to swap their FHM to BLNC; The BLNC token and Ryze trading platform will be launched in line with the attached Balance tokenomics document; The FHM dApp will be updated to allow for the redemption of FHM tokens for their RFV, for those wallets that held FHM prior to the release of this snapshot; The FHM/DAI liquidity pair will be migrated to a BLNC/DAI pair.

To keep everyone informed, announcements will be made closer to the release of each of the above steps to inform holders of the updates and what actions need to be taken.

TLDR

If this proposal is successful, Balance will be free to continue development on the product portfolio, with a focus on bringing Ryze to market as soon as possible. The team is determined to release all the current in-flight products, namely Liqd and the e-commerce partnership. These products will allow the protocol to generate revenue which we are excited to share with our community. Liqd and Ryze are both in beta testing and will soon be released to the public. We therefore believe that the transition to Balance will be a fruitful and profitable journey for all holders who wish to stay with us. By offering the opportunity for redemption at RFV, we hope to accommodate those who may not wish to continue with the new protocol. At the same time, we are incentivizing those who choose to support the transition with a 5% boost when swapping FHM for BLNC. As with all things in crypto, this transition will take some time but we are confident that once this transition is completed that these products will have completed their testing and gold-plating stages of development.

A new dApp function will be created to allow users to redeem their FHM or swap them for BLNC. Any treasury assets remaining after the RFV redemption will be ported over to the new Balance protocol.

This revised proposal, FIP-0008.5, is a middle ground that takes into account the concerns and feedback from the community, ensuring the successful transition to Balance and the delivery of exciting new products for the long-term benefit of all stakeholders involved.

Let's work together and create a brighter future for our community and Balance. Vote for FIP-0008.5, and let's embark on this exciting journey together.

The Vote - Saying Hello to Balance

Closing down FantOHM and launching the new Balance protocol is a significant milestone in our journey as a protocol. We are therefore calling on our token holders to vote on this decision.

The following voting options are available to token holders:

1. I want FIP0008.5, and I want BLNC, no redemption
2. I want FIP0008.5, and I want to redeem with a window of 1 month
3. I want FIP0008.5, and I want to redeem with a window of 3 months
4. I want to abstain from voting