Proposal: time-limited redemption for holders of Fortress

Due to FORT trading under its true backing value for an extended period of time, we propose to hold a snowbank-like redemption event for Fortress.

If this proposal passes, the following will take place: 1.) All assets in the Fortress treasury, other than the FORT LP and recently purchased wmemo, will be converted into sFUSD. 75% of Fort LP will be removed and the stablecoin side will be converted to sFUSD. 2.) A 21 day period will start that will determine whether a redemption event will occur or not. If, at the end of this period, FORT trades:

• at less than 10% over true backing value (defined below), a redemption process will be followed. In this redemption event, every holder of FORT will be able to swap their FORT for true backing value in sFUSD throughout a 7 day period. Staking APY will be changed to 0% and bonding will be disabled. Remaining LP would be removed. All vested team tokens will be burned, however, $35k will be allocated to pay final team salaries during this time. A fifth member (Xibumi) will be added to the Fortress USD (FUSD) multi-sign. This means that Fortress has a 4/5 share in the multi-sign of Fortress USD, with a requirement of 3/5 signs to make a transaction.
• over the price of 10% over true backing value, the Fortress will continue as a project with 0% rebases. The team will work on building more revenue streams for FORT holders and work on a new model for Fortress V2. The same will happen at the end of the 7 day redemption period assuming there is one.

True backing value definition: The true backing value of one FORT is calculated by taking all sFUSD from the treasury (1 sFUSD = 1 dollar) plus all stablecoins in the FORT LPs, divided by the total supply of FORT minus all DAO and FORT-held tokens. This is the only number that will be used, numbers on dashboard may not be up to date / accurate at all times.

Note: the treasury currently owns exactly 125 wmemo. We plan to hold them until redemption is made available by the wonderland team but may sell earlier if the market moves close to fair value. If sold or redeemed, any proceeds would be converted to sFUSD if this proposal passes. If redemption is opened and the treasury still holds wmemo, that would be distributed proportionally to those choosing to redeem.

Further note: please read the FUSD launch post for a disclaimer about FUSD risks. https://deepfivalue.substack.com/p/announcing-fusd-launch-the-stablecoin. While sFUSD is usually not offered to US investors, a redemption site will be made available to US users to redeem their sFUSD.

This proposal, if passed, supersedes any other redemption mechanic previously discussed.