Legal Clarity & New Arbitrage

Fat Cats DAO have always strived to be as legally compliant as possible with major financial jurisdictions. Given recent SEC legal action against prominent exchanges and their deeming a number of crypto currencies to be securities, we wish to formally reiterate that the members of this DAO have always understood that we are not a security. We have always been very conservative with our understanding of the Howey Test and shown our intent to be in compliance by avoiding such things as creating staking programs. That said we wish to show good faith and our honorable intent by clarifying two further matters.

Junior Fat Cats, at such time as we choose to launch them, will be claimable with no time limit on a 1:1 basis for every Fat Cat Genesis. No additional Juniors will be sold to the public.

This DAO will not bring forward votes to distribute profits until such time as we get more legal clarity about security law as it relates to NFTs. We make it absolutely clear that since our inception we have never guaranteed distributions, done any distributions nor has a vote ever been put forward to request distributions. There have however, been discussions within the community about the possibility of future distributions and so the DAO wishes to now bring clarity on this matter.

The council requests to be granted a discretionary mandate to be able to create an arbitration strategy for the Fat Cats collection whereby we use some of our monthly trading profits to purchase Fat Cats on marketplaces, should we see them undervalued relative to our collective holdings. Similarly should be see deviations to the upside we may choose to sell some and/or take collateralized loans against them. A dedicated council managed wallet that only holds Fat Cats and the allocated funds will be created so as to ensure total transparency.