Winddown of ShardVault 2: Bored Ape Yacht Club #1369

Intro

Users who hold a shard can vote whether ShardVault 2: Bored Ape Yacht Club #1369 is to be terminated or whether it is to be kept live. The decision will be made on the basis of simple majority vote (51%) of all holders who are in quorum. If the proposal is passed, all proceeds minus fees from the sale of the underlying assets will be passed to Shard Holders.

Sale

The art will be sold via the insrt multi-sig on an NFT Marketplace with the highest bid/highest liquidity for a given collection. The insrt team will source the best bid possible if the governance vote has passed. Community members will be able to participate in a real-time discussion on our community Discord regarding the selection of the best offer.

If an asset is illiquid on open markets, then Shard holders and the Insrt Labs team will collaborate on finding an OTC buyer.

Claiming

Once the sale has been executed and the proceeds have been attained, users will be able to claim the proceeds by burning their Shards. Users will have the option to:

• Claim the proceeds in the form of ETH minus the protocol sales fee (5%)*
• Claim the proceeds in the form of MINT with no sales fee applied

The protocol sales fees acquired from the termination of a ShardVault will be distributed to Dawn of Insrt holders on the basis of rarity.

Quorum

The necessary quorum hurdle on a particular governance process for a ShardVault will be decreased every time quorum has not been reached on a given vote. Initially, the required quorum for a vote to be valid is 15% of all Shard holders in a given ShardVault.

If quorum was not reached, the vote will be reinitiated the following week with the quorum requirement reduced by 10%. This 10% reduction will continue on a per-week basis if a given vote is not valid due to a lack of quorum to a minimum of 5% quorum in order for a vote to be considered valid.