Some in the community have been concerned over Fortress funding and bootstrapping FUSD, which is a related but separate project. To address these concerns, we propose the following:
- FUSD immediately burns its entire Fort holdings: currently around 93k, but will be slightly higher due to rebases by the time this vote concludes. This represents a value of over a million dollars based on its share of the treasury; burning these tokens would mean all other Fort tokens have a correspondingly greater backing value, extending the runway.
- This is viewed as entirely compensating Fortress for the investment to develop FUSD. Fortress will still have minting and redemption fees entirely waived for FUSD.
- FUSD will be permitted to transact on the market going forward on the same terms as any other market participant. However, to avoid a conflict of interest, FUSD will refrain from voting Fort on any proposals.