Forefront Treasury Diversification

Summary

This proposal seeks to authorize FF Treasury to exchange 1,000,000 FF tokens for $2,000,000 USDC.

A comprehensive timeline of discussion can be found on the Governance forum.

Motivation

Forefront treasury is currently mainly composed of FF tokens (72% of total supply of $FF) and a small allocation of $ETH and $ROBOT tokens. Because 99% of the treasury is denominated by $FF, it remains highly unsustainable for the long-run development of the community.

As the Forefront DAO looks to expand its operations and onboard full time contributors, a diversified and sustainable treasury has become apparent. De-risking the treasury with more liquid and stable assets will allow us to fund operations and programs via USDC instead of FF tokens or exchanging $FF in the highly volatile open market which further alleviates the selling pressure on $FF.

To recap, along with posting the original proposal in the forum for an open discussion around the details and implications, we’ve hosted three separate hangouts on our discord with potential strategic partners and community members. Recordings of these hangouts are available on our discord and can be accessed by any community member.

Specification

We propose exchanging 1,000,000 FF tokens held in the DAO Treasury to strategic partners and community members for $2,000,000 USDC at a fully diluted network valuation (FDNV) of $20M, or 2 USDC per $FF.

Of the total exchange amount, 80% will be allocated to strategic partners, while 20% will be reserved to community members.

All proceeds of this strategic round will go directly to the DAO Treasury.

Strategic Partners

Forefront staff has negotiated the final allocation amount with strategic partners, which are composed of community focused funds, founders, and angels. Final list and allocation as follows:

Name	Allocation (FF)
Pet3rPan (1kx)	400,000
Linda Xie (Scalar Capital)	125,000
Own.fund Collective	75,000
MetaCartel Ventures	75,000
DeFi Collective	40,000
Brett Shear (Palm Tree Crew)	12,500
Andy Chen Fang (Synthetix)	12,500
Jenil (Coinvise)	12,500
Kevin Chou (Rally)	12,500
Jacob Horne (Zora)	12,500
Samantha Yap (YAP Global)	7,500
Anthony Sassano (EthHub)	7,500
Jesse Grushak	7,500
Total	800,000 FF

Full list here

FF tokens acquired via strategic partners round will be subject to a 12 month cliff, plus an additional 12 month linear monthly unlock after the cliff.

Community Round

As discussed in both the original and revised proposal, 20% of the round (200,000 FF) will be reserved for the community, prioritizing Forefront contributors as defined by Season One guidelines.

Forefront staff will be sending out an Interest Form in waves. This form will be timeboxed, and in line with the following criteria:

• Wave 1: Current Contributors and Collaborators “Contributor” will be formally defined based on the Season 1 definition. If you are an official member of a Guild and have gone through the onboarding flow, you are a contributor.
• Wave 2: Past Contributors, NFT Holders, Merch Holders, Sourcecred Users, Snapshot Voters, Speakers Here, contributor is loosely defined to mean anyone who has completed an FF bounty, been a Hangout guest, or any other meaningful contribution to the community. NFT holders (Genesis NFT) and Metafactory Merch Holders are also included in this wave.
• Wave 3: Forefront Community Members If you are not a member of the above waves, Forefront members will still have access to the Community Allocation in a third and final wave.

The maximum individual community allocation will be $10,000USDC (min $1,000USDC). If the round is not filled by Wave 3, the remaining Community Allocation will be rolled over to Strategic Partners. The Community Allocation period will last only 72 hours.

The official dates will be announced after the Snapshot vote (assuming community approval).

Tokens acquired via Community Round are not subject to vesting.

Vote

Yes - Vote YES to approve the exchange No - Vote NO to not approve the exchange

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Value. Culture. Community