DAO Proposal #35 Funding for OTC Sales and Network Growth 1/5

Title of Proposal: Funding for OTC Sales and Network Growth #1

Proposal ID: #35

Proposer(s): Hydranet Multi-Sig

Submission Date: March 29th, 2025, at 0900 UTC

1. Abstract

Summary:

This proposal requests the allocation of 25 million HDN from the Hydranet DAO Vault in five consecutive snapshot votes of 5 million HDN each, as per DAO-approved tokenomics limits. The allocated HDN will be transferred to a dedicated multi-sig address for prearranged OTC sales. All sales from this fund will be verified and conducted with thoroughly vetted investors.

Motivation & Rationale:

This marks the first round of professional funding by the DAO, with the allocated HDN (totaling 8.33% of the max supply) supporting main net readiness, liquidity provisions for orderbooks, project marketing, and salaries to retain and expand the development team. To ensure compliance with DAO-approved tokenomics, 25 million HDN will be allocated through five consecutive snapshot votes of 5 million HDN each, spanning 25 days. This staggered allocation ensures adherence to governance rules while expediting the funding process.

2. Proposal Details

Proposed Updates & Objectives:

Grant Allocation: Transfer 5 million HDN per vote for a total of 25 million HDN from the DAO Vault to a new multi-sig address.

Purpose: Fund professional OTC sales, ensuring all transactions undergo strict verification and investor vetting.

Usage:

-Research and development

-Liquidity provisions for Hub orderbook

-Project marketing

-Salaries to retain and grow the project

-Facilitate a fully operational network, ensuring sustainable revenue via DEX fees

Implementation Overview

Action Steps:

-The proposal begins at the DAO forum for discussion and heat check.

-If the proposal passes heat check the snapshot vote begins.

-If the first snapshot passes, the remaining 4 votes of 5 million HDN start consecutively one after another until all are passed or voted down.

-After each vote passes the HDN is sent to a secure multi-sig address.

-Verify all OTC transactions via strict investor screening protocols.

-Allocate the proceeds toward core project needs.

-Monitor and report fund usage every quarter to ensure transparency and alignment with Hydranet’s growth objectives.

Timeline:

March 29th, 2025: Proposal submission and initial discussion. April 5th, 2025: Voting begins if heat check passes April 10th, 2025: 1/5 HDN funding Snapshot voting ends April 11th, 2025: OTC rounds commence with quarterly updates to the DAO April 10th, 2025: 2/5 HDN funding vote begins. April 15th, 2025: 3/5 HDN funding vote begins. April 20th, 2025: 4/5 HDN funding vote begins. April 25th, 2025: 5/5 HDN funding vote begins.

Overall Cost:

25 million HDN, representing 8.33% of the total supply.

Supporting Documentation:

Fund expenditures posted quarterly to the dao

3. Impact Analysis

Advantages:

-Initiates professional funding, paving the way for robust network and ecosystem growth.

-Enhances HUB liquidity provisions and strengthens orderbook stability.

-Supports critical project milestones, including main net readiness and effective marketing.

-Adheres to DAO-approved tokenomics while ensuring the timely allocation of required funds.

-Accelerates our development towards full toknomics implementation and sustainable revenue through DEX fees

Disadvantages:

-Allocates a significant portion (8.33%) of the total HDN supply. This percentage is lower than most projects that go through funding rounds at pre-token issuance.

-Requires five consecutive votes instead of a single allocation, extending the funding timeline.

-Requires strict operational and compliance oversight to ensure proper use of funds.

4. Conclusion & Voting

Final Thoughts:

This structured funding proposal balances governance compliance with project growth needs. By executing five consecutive 5M HDN allocations over 25 days, we can fast-track necessary funding while staying within DAO-approved tokenomics. This initiative is critical to secure liquidity, complete main net readiness, enhance marketing efforts, and retain top talent, ensuring Hydranet’s long-term success.

Voting Options:

Approval: Allocate 5 million HDN per vote, totaling 25 million HDN over five consecutive votes to fund OTC sales and network expansion.

Rejection: Deny the funding request.