FLIP #1 - Liquidate FLOORK Treasury and Rage Quit

Proposal

The Multisig Members propose a liquidation of the FLOORK Treasury, after which a rage quit process will be deployed for FLOORK holders to redeem a pro-rata share of the treasury.

Data

FLOORK DAO is slated to receive approximately the following in a transfer from the FLOOR DAO in the coming days (pending change and approval from FLOOR Team):

Implementation

Within 24 hours of receiving the assets or the passing of this proposal, whichever happens later, WETH, stETH, DAI, and any other non-NFT ERC-20 assets will be liquidated at the MSIG’s discretion to USDC, with the exception of 2 ETH set aside for gas purposes. This will result in roughly half the treasury quickly in USDC.

MSIG members have discretion to convert more of this USDC to ETH for gas purposes if needed as part of the liquidation process.

The MSIG will then have discretion in liquidating the remaining NFT assets to USDC, with the goal of both minimizing slippage while keeping as short of a time frame as possible. The MSIG will target less than 3 weeks (as most of the NFT’s have a 1 week lockup, allowing 2 weeks for liquidation) from the time of receiving assets from FLOOR DAO, but can exceed this time frame at the MSIG Members’ discretion.

Execution discretion is given to Multisig members here (as opposed to voting on liquidation strategies) to allow for quicker execution while also to minimize any potential front running, thereby improving execution and maximizing value obtained for FLOORK holders. Liquidation strategies may include but are not limited to: sweeping resting bids, placing limit offers, executing OTC trades, etc.

Rage Quit

Upon full liquidation of assets to USDC, MSIG members shall deploy a Rage Quit Contract that will allow users to burn their FLOORK for USDC. One FLOORK = One FLOORK: all FLOORK will be eligible and all FLOORK will be redeemable for the same amount of USDC.

The Rage Quit Process will not have a closing date; funds will be available to claim forever.

Only in the interest of protecting FLOORK DAO members’ funds may MSIG members act in discretion to pause the Rage Quit Contract at any point.

After the Rage Quit contract is deployed, any remaining ETH in gas exceeding 0.2 ETH will be liquidated to USDC with execution at the MSIG member’s discretion, and added to the USDC available for Rage Quit. 0.2 ETH will remain in gas as a safeguard towards needing gas for any reason in the future (i.e. emergency pause of contract, etc.)

Only if and when 100% of FLOORK is burned, may any remaining amount of this 0.2 ETH set aside for gas be reappropriated at the MSIG members’ discretion.

Following excess gas funds being liquidated to USDC, the Rage Quit conversion rate (USDC per FLOORK) will be calculated as [Eligible USDC]/500695.110944322, where the denominator is the fixed and final amount of circulating FLOORK.

[Eligible USDC] will be calculated as follows:

[Eligible USDC] = [All USDC in Treasury] - [Compensation for MSIG Signers]

Where [Compensation for MSIG Signers] may be an amount agreed to by token holders via a governance vote at a later date.

Vote

• Vote “Approve” if you approve this proposal
• Vote “Disapprove" if you disapprove of this proposal