Summary

This proposal aims to initiate a token redemption program where the DAO will allow members to redeem DAO tokens for 10,000 $PUNKs tokens. DAO members can participate by sending their DAO tokens to the DAO vault over the redemption period that will last for at least three weeks. At the end of the period, 10,000 $PUNKs tokens will be distributed for each DAO token redeemed back to the addresses that participated in the token redemption. Following the redemption period, the remaining $PUNKs tokens held by the DAO will be converted to $gg.

Implementers:

The multisig team will be responsible for distributing the $PUNKs for the proposal. The founders dao twitter account will announce the end dates for the redemption period and publish the distribution list at least one day prior to the dispersal for review. The multisig team will also be responsible for implementing the $PUNKs for $gg conversion.

Motivation:

The $PUNKs tokens held by the dao are available to be converted to $gg. This conversion provides voting power to the DAO for the governance of the Reboot Protocol. There have been attempts by the DAO to exchange the $PUNKs tokens in the vault for $gg in the past that have been voted down. Additionally, there have been a number of divisive proposals over the last few years that indicate a growing divide among DAO members on the direction of the DAO.

This proposal offers a token redemption for members that do not wish to see the $PUNKs tokens converted to $gg. By offering this redemption, members are given the choice to keep the fractional ownership of the cryptopunks held in the $PUNKs contract.

The excess supply of DAO tokens also poses a security risk to the integrity of the DAO. Excess supply allows bad actors to accumulate voting power and influence. Ensuring voting power remains in the hands of long term believers in the DAO is critical for the DAO to achieve its long term goals. It is beneficial for the DAO to have its members return voting power back to the DAO instead of trading the voting power away to bad actors.

Implementation (Token Redemption):

All tokens sent to the founders' dao wallet BEFORE the announced end date will be accepted. The official end date will be announced on the founder’s dao X (twitter) account. The end date will be 3 weeks at the minimum after the initial announcement.

Prior to distribution a list of the distribution addresses and amounts will be published on the DAO’s X (twitter) account for a minimum of 24 hours. This time will allow members to dispute any potential errors.

X (Twitter) account: @foundersdao

Redemption Mechanics Members will send their DAO tokens to the designated DAO wallet address:

The wallet Address is: Foundersdao.eth

Any tokens sent after the announced end date will be retained by the DAO and will not be included in the $PUNKs distribution. However, the multi-sig team can make an exception for extenuating circumstances.

Distribution: After the end date, the multi sig team will distribute 10,000 $PUNKs for every dao token sent to the DAO vault. The multi sig team will implement the distribution using the same disperse function that was used for the previous token redemption proposal. The multi sig team has flexibility to implement the distribution in the most efficient manner possible.

Distribution Date: The distribution will be initiated within 7 days after the end of the redemption period. Any delays to distribution must be communicated on the DAO’s X (Twitter) account along with the cause of the delay.

Implementation ($PUNKs for $gg conversion):

Following the $PUNKs distribution, the multi sig team will initiate the conversion of the remaining $PUNKs balance held by the DAO to $gg.

Benefits:

The DAO will reduce the circulating supply of its membership token and reduce the ability for bad actors to gain control of the DAO

The DAO will increase its supply of $gg and improve its voting power for the Reboot ecosystem.

DAO members that are no longer aligned with the vision of the DAO are able to renounce membership without negatively affecting the voting power of active members.

The membership tokens for active members that remain in circulation will have increased voting power.

Drawbacks:

This $PUNKs for $gg exchange would mean the DAO no longer holds any $PUNKs tokens and therefore will not have fractional ownership of the 16 cryptopunks. However, it would allow the DAO to improve its voting power within the Reboot ecosystem.

The token redemption would mean the DAO will have less total potential governance power with gg/Reboot however, the voting power per member would increase.

Coordination with other potential proposals:

Should this Proposal be enacted, any snapshot of PVFD members will be delayed until after the Redemption Period and $PUNKs distribution has concluded.

Voting Choices:

For: Approve the $PUNKS token redemption period and subsequent $PUNKs for $gg conversion for the remaining $PUNKs tokens.

Against: Reject the proposal and do nothing.

Abstain: Abstain from the vote