[SQR-005]: Delay of Team & Advisor Token Distribution

Introduction to Magic Square DAO

Magic Square is a comprehensive Web3 ecosystem that empowers projects and users to connect and thrive through its innovative Web3 App Store and Launchpad. The $SQR token powers the ecosystem, offering utilities for users and projects. With the DAO, the community can participate in shaping the future of the platform and the $SQR token. Voting power is determined by your staked and held $SQR, as outlined in the Magic Square DAO Documentation. Engage in discussions on this and other proposals in our Discord Community.

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Proposal Overview / TL;DR

This proposal seeks the DAO’s approval to delay the token distribution allocated for the Magic Square team and advisors, which was originally scheduled for February, as per the tokenomics vesting schedule. Given current market conditions and the decline in token price, we propose delaying this distribution to prevent unnecessary selling pressure and ensure the long-term sustainability of the ecosystem.

The DAO community will vote on whether to proceed with the delay or keep the existing vesting schedule.

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Reasoning for the Proposal

• Market Conditions: The current state of the market and the declining token price present challenges for distribution at this time.
• Impact on Token Price: Releasing the team and advisor tokens as per schedule may create additional selling pressure, potentially impacting the price further.
• Long-Term Vision: By delaying the distribution, the DAO ensures a more strategic approach to managing the supply of $SQR and aligning incentives with long-term growth.

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Proposed Voting Options

1. Yes, Delay Distribution

   • Approve the delay of team and advisor token distribution.
   • A revised vesting timeline will be proposed in a future DAO vote based on improved market conditions.

2. No, Keep Same Schedule

   • Proceed with the original vesting schedule and distribute tokens in February as planned.

3. Abstain

   • No opinion on the proposal.

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Summary and Call to Action

This proposal aims to align the distribution of team and advisor tokens with market conditions to ensure sustainable growth and reduced selling pressure. The DAO community now has the opportunity to vote on the best course of action.

Review the proposal and cast your vote to help shape the future of Magic Square.

For further discussions, join our Discord Community.