HIP-19: HAIRy Situation

As has been discussed at length for the past three months in our public governance channel (https://discord.com/channels/1102313145575419996/1111690716486303845/1181299032254070875), there has been an ongoing dispute between Molecule and HairDAO core team members.

For HairDAO’s series of events, please read this document: https://docs.google.com/document/d/1SVRgvj2gzfOByk24aYNpYrxtPW-WOK1HOqQ0iLHVNGE/edit?usp=sharing

For Molecule’s series of events, please read this document: https://docs.google.com/document/d/139Gnrp11N2BA0JSaUPlXpl98IAcgOxBS0quP1DsxAvQ/edit?usp=sharing

TL;DR: Molecule believes that they are entitled to 6.9% of the total outstanding HAIR token supply. Molecule cites the spirit of the ACGT and WAGMI contracts, in which Molecule provided a $100k grant to HairDAO in exchange for a warrant to purchase 6.9% of the total HAIR token supply.

HairDAO core team members believe that Molecule is entitled to 1.9% of the total outstanding HAIR token supply, due to that Molecule is legally owed 0 HAIR under the ACGT and WAGMI contracts, as well as that Molecule’s CEO, CLO, Director of Product, and several other employees subsequently agreed to vest their token allocation in HIP-2. At the time that Molecule and HairDAO terminated their relationship, only 1.9% of Molecule’s HAIR tokens had vested. While Molecule team members initiated the relationship termination, HairDAO core believes that the termination should be ratified.

Next Steps:

Voting “For” this proposal will ratify the termination of the relationship between Molecule and HairDAO. If passed, authorized representatives from Molecule will be required to sign the following contract, forfeiting all future claims against HairDAO: (https://docs.google.com/document/d/1iCZWJMg5f-M-hoRRtJ0QRjIiNxhtQWZv/edit?usp=sharing&ouid=105229548975979884738&rtpof=true&sd=true).

Once executed, HairDAO will transfer the owed HAIR to a smart contract that unlocks on 2/26/24 (per HIP-2) and is under the control of a wallet selected by Molecule. Should this proposal pass but Molecule refuses to accept HairDAO’s decision within two weeks of the vote finalizing, HairDAO will take the position that Molecule is entitled to 0 HAIR tokens, per the ACGT and WAGMI contracts.

Voting “Against” this proposal signals that you believe further negotiation is needed between Molecule and HairDAO in order to find a more fair resolution. A vote against could mean that you believe the current offer of 1.9% of the total outstanding Hair supply is either too harsh or too generous. Should the community vote against this proposal, we will conduct another survey to gauge community sentiment before proposing either a higher or lower offer.

Conclusion:

We understand the significant economic value at stake in this vote. As such, there were concerns of one party or the other gaming the vote to end up in their favor - ie, buying tokens on the open market to vote for their side before selling. In a gesture of good faith, both HairDAO founders have waived the right to vote with our HIP-2 team token allocations. Instead, we will both only use the tokens that we have purchased on the open market to vote.

Our dispute with Molecule has been unpleasant but it is also an incredible opportunity to set the precedents by which we would like to govern ourselves. As we come to our final decisions on the matter, we must be acutely aware of the ripple effects that such governance decisions will have on the long-term sustainability of HairDAO. After all, if we cannot create an antifragile organization that supports dispute resolution in a fair and just manner, we will never solve hair loss…which is the main reason we’re all here!

Long Live HairDAO.