JBP-301 - Reallocate ETH From v1 → v3, Cover v2 Expenses

Author: filipv
Date: 2022-11-28

Thesis

Instead of adding 1,205.31527829 ETH in the multisig to the v1 treasury balance, add 150 ETH to the v2 treasury to cover the DAO’s recurring payouts and add the remaining 1,055.31527829 ETH to the v3 treasury balance.

Motivation

The DAO’s v2 treasury does not currently hold enough ETH to fulfill the DAO’s FC#36 payout obligations. Contributors receiving a payout from the v2 treasury did not receive their full payout for this funding cycle, and will not receive the rest of their payout unless ETH is transferred from the multisig to the treasury.

JBP-284 allocated 1,205.31527829 multisig ETH to the v1 treasury. If this ETH were deposited into the v1 treasury, it would generate 30.13 ETH in fees upon leaving the treasury, which would in turn erroneously issue 30.13 ETH worth of JBX to the reserved list and the multisig.

This would also make DAO operations more complex: the sooner that the DAO can fully migrate to its v3 treasury, the simpler the DAO’s operations will be. Adding these funds to the v3 treasury will allow the DAO to begin migrating payouts and other distributions to its v3 treasury sooner, reducing the future complexity of governance and multisig operations.

Specification

Instead of adding 1,205.31527829 ETH to the v1 treasury’s balance, the multisig shall:

1. Add 150 ETH to the DAO’s v2 treasury balance.
2. Add the remaining 1,055.31527829 ETH to the DAO’s v3 treasury balance.

Rationale

Calling the addToBalanceOf function will not mint any project tokens, meaning balances will be accurate.

Risks

• The v1 contracts have held large amounts of ETH without any exploits or hacks. The v3 contracts might contain an exploit we are not yet aware of.
• This change will make it more difficult to enable v3 redemptions in a timely manner.
• These funds will not be available for redemption by v1 JBX holders until a v1 → v3 token migrator is deployed. This may take several months.

Timeline

Add 150 ETH to the DAO’s v2 treasury balance within 3 days of this proposal’s Snapshot ratification. The rest of the specification is to be executed within 36 days of this proposal’s Snapshot ratification.

---

Discussion Thread | IPFS