FIP#68 - Attempt to Unwind the MAYC NFTX Vault

Summary:

This proposal establishes our support for unwinding the Mutant Ape Yacht Club NFTX vault through NFTX governance.

Motivation:

FloorDAO is currently holding slightly over 0.41 MAYC tokens after selling off the vast majority of its Mutant Ape position earlier this year. The MAYC token currently has no liquidity providers and there are no known plans for any liquidity to be added. This makes Floor's position difficult to exit and not a reliable way to capture potential upside in NFT floor price. By exiting its MAYC position, Floor could increase its ETH exposure or could choose to reallocate the funds towards productive strategies. Other active holders of the MAYC token are ready to act now. As time passes, it may become difficult to coordinate with all of them at the same time in governance, so it makes sense to strike while the iron is hot.

Proposal:

In the near future Floor will use its voting power from its MAYC tokens to support an NFTX governance proposal to unwind the MAYC vault. If passed through voting on the vault token level and the NFTX protocol level, unwinding the vault would allow NFTX to auction the two remaining Mutant Ape NFTs and split the proceeds pro-rata between MAYC token holders.

Risks:

Potential opportunity cost: Floor could miss out on potential gains in the case of the floor price of MAYC increasing and us actually being able to exit its position in the future.

Disclosure:

The author of this proposal [49esrscoach_ on Discord] is a holder of the MAYC vault token.