Adding $CITIZEN Liquidity

Kong Improvement Proposal

Goal: To increase access to $CITIZEN by adding liquidity to the $CITIZEN/ETH pool.

Sponsors: Include folks planning to work on this proposal. Do not include folks who are just supportive of this proposal.

KONG Land Senate

Description: The KONG Land Senate is seeking 3 $CITIZEN tokens, all $ENS tokens (~233) and 7.5 ETH from the treasure to add on behalf of KONG Land to the $CITIZEN/ETH pool at a range to the discretion of the KONG Land Senate. $ENS will be liquidated to $ETH first.

The intent of this action is to create durable liquidity in a lower range of the pool; currently 1 $CITIZEN is ~1.27 ETH to buy and yields just over $1 USD in ETH when sold.

The amount of $CITIZEN and $ETH chosen for this proposal are intended to signal a serious commitment to this liquidity position while unfreezing the market to enable price discovery, all at the same time as maintaining some $CITIZEN and the majority of $ETH in the KONG Land treasury.

After this action ~4 $CITIZEN tokens and ~30 $ETH will remain in the treasury.

Benefits:

This action should provide liquidity for disinterested $CITIZEN holders to sell their tokens as well as a more rational price for interested $CITIZENs to buy.

Success Metrics:

Tighter convergence between the purchase and sale price of 1 $CITIZEN (e.g. 1 $CITIZEN should cost less than 1.27 $ETH to buy and garner more than $1.27 upon sale)

Duration:

Start: Immediately after successful vote End: Indefinite; tokens are to remain in LP until subsequent $CITIZEN vote to remove them (which is not recommended in this action)

Tokens Requested:

• $CITIZEN: 3

• $ETH: 7.5

• $ENS: all tokens in treasury, ~233 de minimis $ETH gas to create pool position (not to exceed 0.1 ETH) RISKS:

• Disinterested $CITIZEN holders may “dump” $CITIZEN for the $ETH, draining the $ETH position

• The ostensible price for $CITIZEN will go down, potentially devaluing the perceived value

• All $CITIZEN added to the pool may be purchased, leaving the treasury with less latitude to carry out actions with $CITIZEN in the future

Transactions Upon Passing:

• All $ENS to be sold for $ETH
• Adding 3 $CITIZEN to pool
• Adding approximately 7.5 $ETH + proceeds from $ENS sale to pool