PROP 8 - Polygon Foundation Strategic Partnership

This proposal has been accepted and is endorsed by the Polygon Foundation in partnership with 0xb1 & FODL Team

As everyone knows the launch of FODL on Polygon L2 is around the corner. We met with the Polygon team at ETH Denver 2022 and discussed how to best get their traders using FODL for low-fee, self-custody leverage trades.

FODL on Polygon L2 will initially run atop Aave Polygon Market, and with MATIC incentives on AAVE soon ending, we hatched a plan to incentivize liquidity for FODL Polygon trading activities and further substantiate our mutual goals of low-cost, NFT utility world.

The FODL team would submit to the FODL DAO to offer the following proposal for mutual cooperation with the Polygon ecosystem and the Polygon Foundation.

In exchange for 4,000,000 MATIC token as FODL Polygon platform usage incentive over its first year of FODL deployment on Polygon network, the FODL DAO will grant the Polygon Foundation a sum of 20,000,000 FODL from its Grant allocation, locked for no less than 2 years by multi-sig.

DAO Grants Treasury: https://etherscan.io/address/0xafde8f44270a8d7996ab0ed5fa1d1b12d10ca143

Of course, FODL token will still remain the majority of the LM incentives for the FODL Polygon deployment, with up to 300 million FODL, or approximately 30% of the total supply, available as incentives for users of FODL on Polygon over the next 2.5 years.

All MATIC made available as LM incentives on FODL Polygon platform will follow the same vesting schedule as FODL token rewards, with rewards vesting linearly over one year. To be clear, this means that the final month of MATIC rewards (Feb-March 2023) will not become fully vested until the Feb-Mar 2024 epoch.

To further promote ecosystem dynamics and FODL liquidity, we have agreed with Polygon that their multi-sig controlled FODL should be usable as collateral on Rari Pool 127. Thanks to these further optics, we can hope to drive more ETH and stablecoin liquidity to Pool 127 for $FODL, $MATIC, $BNT and other FODL ecosystem partner tokens.

If and when a Polygon version of 0xb1 Kitchen Sink / Rari Capital Pool 127 is deployed on market.xyz, the Polygon layer Rari equivalent, Polygon Foundation would be able to use locked FODL as collateral there as well.

While 20,000,000 may seem like a large sum of FODL, please keep in mind that there are few communities of Blockchains in the ecosystem that support such a vast and diverse group of people, traders, and users. To this end, the Polygon Foundation has agreed that should the price of FODL exceed $0.75 for any 60 day time period during the duration of the 2 year lock, Polygon Foundation will deliver back 10,000,000 FODL to the DAO Grants Treasury, or half of the total allotment.

We encourage all in the FODL community to support such a long lasting partnership with the Polygon Foundation.