Sigprop: Distribute Curve’s DAI 70/30 to AavegotchiDAO and Pixelcraft Studios

Author: Jesse | gldnXross#6482 GotchiID: 4563 Quorum requirement: 20% (9M) Vote duration: 7 days

Final Discourse Thread: https://dao.aavegotchi.com/t/alternate-proposal-for-post-curve-allocation/4668

Original Discourse Thread: https://dao.aavegotchi.com/t/proposal-to-close-the-ghst-bonding-curve-and-allocate-curve-s-collateral/4628

Allocation of the Curve’s DAI In addition to derisking from reliance on MakerDAO and DAI, turning off the Curve is also an opportunity to secure significant funding for Aavegotchi development.

So far, the DAI in the Curve’s contracts has only served one purpose: to provide liquidity for the creation and destruction of GHST tokens. After the Curve’s closure, whatever DAI remains in that contract will be freed to go to work on behalf of the Aavegotchi protocol.

This proposal is for the Curve’s DAI to be allocated to two main parties, AavegotchiDAO at 70% and Pixelcraft Studios at 30%. This is to take place across three distinct multisig wallets, two of which are managed by AavegotchiDAO elected members while the third allocation goes to the founding team, Pixelcraft Studios, to continue development and advocacy for Aavegotchi protocol.

Note: The numbers below were adjusted from the 20/40/40 split originally proposed, based on community feedback.

AavegotchiDAO Liquidity Provisions (40%) 40% of the Curve’s collateral should immediately be directed to a DAO managed multisig specifically tasked with deepening liquidity on an agreed upon platform or platforms to help prevent extreme volatility in the moments following the closure of the Curve. There needs to be one or more places for people to enter and exit GHST with healthy liquidity.

AavegotchiDAO will have to decide which platforms make the most sense to deploy on. I suggest that we consider creating a task force empowered to manage this liquidity while the decision of where to initially direct that liquidity could be signaled by the greater DAO at the same time. Examples include decentralized platforms like Quickswap and Uniswap but there is a case for traditional CEXs as well. In either case, Pixelcraft Studios can help to introduce AavegotchiDAO Foundation to trusted market makers or decision makers at the platforms being considered.

If this proposal passes, AavegotchiDAO should set about deciding how to structure the receiving multisig and who will be responsible for signing, as well as strategies to put the funds to use ASAP.

AavegotchiDAO Foundation (30%) The 9 members recently elected to sit on the AavegotchiDAO Foundation host the most obvious multisig wallet to receive and secure DAI on behalf of our DAO’s treasury.

The DAO can then opt to vote on a diversification strategy it believes is optimal, and the multisig Directors can carry out that plan. Remember, the 9 multisig signers were elected without any decision making power. The DAO at large will be responsible for appropriating funds from treasury via AGIPs, Taask Forces, or other future methods.

Pixelcraft Studios (30%) Home of the Summoners of AavegotchiDAO and the creators of Aavegotchi, Pixelcraft Studios prides itself on being frugal, good stewards of the funds entrusted to it by the community.

Our vision for 2023 and beyond is clear – to make Aavegotchi a well-known brand in the NFT gaming industry, and beyond that, an IP recognized around the world.

As to how Pixelcraft Studios intends to use these funds, that can be broken down into seven distinct categories:

Ensuring relevant partners have sufficient working capital to maintain deep liquidity on CEXes partnering with Aavegotchi. Increasing spending on outreach, tasteful marketing, and growth-oriented endeavors to ensure that our message is heard loud and clear in 2023. Equipping our development and design teams with the staff and training they need to deliver on key roadmap items such as the Gotchiverse, Gotchi Guardians, and Gotchichain. Derisking from potential stablecoin collapses by diversifying the DAI received into a variety of assets secured on Polygon, Ethereum, and Bitcoin chains, with a small percentage also stored offchain to pay for real-world expenses. Launching an Aavegotchi builder’s program to incentivize talent to build on Aavegotchi and fast-tracking the IP licensing process. Donating to registered charities that align with the shared vision and mission of the Aavegotchi community and Pixelcraft Studios. Sponsoring and hosting IRL events to raise awareness of the Aavegotchi brand and form lasting connections with frens new and old in the meatspace. Notably, here’s what we would NOT do: A. Use the funds to give bonuses or unnecessary raises to Pixelcraft Studios founders or team members. B. Spend the funds on frivolous, tasteless marketing that does not serve the Aavegotchi brand. C. Spend the funds on any endeavor or product not directly related to Aavegotchi.

What if the DAO says no? If the DAO rejects the proposal to turn off the curve for whatever reason, we are pleased to say that Pixelcraft Studios is in fine financial condition, and our roadmap plans would not be significantly affected by this decision.

All of the items published on our latest 2023 Roadmap, and also on previous roadmaps, are doable with our current treasury and burn rate, assuming that DAI does not experience the depeg we are worried about, and the market does not experience major black swans that massively wipe out all value in the crypto space.

If the DAO votes to turn off the curve but decides not to allocate funds to Pixelcraft Studios, that is also fine with us, but we would hope it has a solid plan on how to handle a post-curve GHST ecosystem.

Conclusion This proposal advocates increasing funding to both major parties by putting the Curve token sale’s DAI to work on behalf of all GHST and Aavegotchi NFT holders.

If you believe now is the time to go big, scale up operations and improve accessibility to GHST token, vote for this proposal.