#3 Governance Redemption Pool

MOTIVATION

LGO holders are the de-facto stakeholders of the LEVEL protocol. As such we want to encourage stakeholder participation as well as contribution of expertise that would help the platform become a preeminent marketplace for decentralized liquidity.

At the time of the proposal, the total DAO Treasury balance stands at at $409,837, which includes $145,069 in accrued fees, strategic seed capital, and 210,000 LVL tokens with a current value of $264,774.

This motion proposes the creation of a surrender vehicle that would allow non-participating LGO holders (or those who simply wish to leave the ecosystem) to surrender any and all portions of their tokens against their pro-rata ownership of the Treasury’s cash balance ex LVL tokens. As the community continues to grow, we want governance to be accessible to all participants.

PROPOSAL

Every 2 weeks, there will be a 2-day redemption window to allow LGO holders to redeem their LGO against the Treasury (excluding LVL tokens on the balance sheet).

With the exception of 20% reserved for protocol development, 80% of the existing cash balance (BTC, ETH, CAKE, BNB, BUSD) within the Treasury will be made available for redemption. All surrendered LGO tokens will be burnt.

During the 2-day redemption window:

• The surrender value of LGO token will be calculated based on the supply of circulating LGO tokens. The surrender value is calculated and fixed at the beginning of each 2-day redemption window.
• Once redemption has been completed, surrendered LGO tokens will be burned.

For example, if the Treasury owns:

• 10 BTC
• 50 ETH
• 200 BNB
• 100,000 BUSD
• 50,000 USDT

With 10 LGO in circulation, the surrender value of 1 LGO will be

• 0.8 BTC
• 4 ETH
• 16 BNB
• 8,000 BUSD
• 4,000 USDT

The first LGO Treasury payout window will start during the week of February 6, 2023.

VOTING OPTIONS AND ELIGIBILITY

Choose one of the following options to vote on:

YES - Agree with this proposal NO - Disagree with this proposal

Only LGO token holders are eligible to vote.