LTIP-18: Wind Down Layer2DAO and Distribute Assets

Summary

After careful consideration, the treasury council proposes to wind down Layer2DAO and distribute all liquid assets to xL2DAO + L2StateOfMind NFT holders (must hold both to be eligible). This decision comes after evaluating the DAO's progress, market conditions, and future prospects.

Background

Layer2DAO was founded with the mission of promoting Layer 2 adoption and providing value to token holders through strategic investments. However, over time, several factors have led us to reconsider the DAO's future. Our original mission of promoting Layer 2 adoption has largely been accomplished by broader market forces and the natural evolution of the Ethereum ecosystem. More recently, the challenging investment environment has limited our ability to generate substantial returns for token holders. We've also observed a decline in community engagement, with fewer participants actively contributing to governance and discussions. Given these circumstances, we believe it is in the best interest of all token holders to wind down the DAO responsibly and distribute its assets.

Proposal

Distribution Process:

• All liquid DAO assets will be converted to ETH
• Assets will be distributed to xL2DAO + L2StateOfMind NFT holders (must hold both to be eligible) via the existing airdrop functionality
• Distribution will be proportional to each holder's xL2DAO stake
• Growth Council and Treasury Council members that hold locked and inaccessible L2DAO in Hedgey contracts will have their locked token amounts added to the airdrop calculation as fully staked xL2DAO.

Timeline:

• Proposal feedback period: October 22 - October 25
• Voting period: October 28, 2024, 00:00 UTC - October 31, 2024, 00:00 UTC
• Final distribution snapshot: October 31, 2024, 00:00 UTC
• Airdrop snapshot review period: 72 hours
• Asset distribution: Within 14 days of snapshot review period

Post-Distribution:

• All DAO operations will cease
• Discord server will remain open for a limited time to address any issues

Voting Options

• Yes, proceed with winding down Layer2DAO and distributing assets
• No, continue DAO operations