[MIP-30] Approve Budget for the Supply Consolidation Program (SCP)

Pricing in this proposal was updated based on community input gathered during discussion phase. See Program Mechanics.

Proposal Summary

This proposal seeks governance approval to allocate up to 72.88 ETH (40.57% of Maia’s sfrxETH reserves) to fund the Supply Consolidation Program (SCP), as outlined in the recently published article: Liquidity Strategy Phase 1: Supply Consolidation Program (SCP).

The SCP is a strategic initiative designed to stabilize liquidity conditions, optimize treasury allocation, and align community incentives by consolidating circulating supply of $MAIA and $HERMES. This program represents a critical step in Maia DAO’s multi-phase strategy to strengthen the protocol’s foundation and accelerate Hermes v2’s adoption as the premier omnichain liquidity solution.

Key Details of the Proposal

1. Budget Allocation:

72.88 ETH (40.57% of Maia’s sfrxETH reserves) will be allocated to fund the Buy Back Contract.

2. Program Mechanics:

Prices are fixed in ETH and reflect 50% discount on the current asset prices, while ensuring access to vastly deeper liquidity than what is available in the pool.

$MAIA: $0.61 (2.5e-4 ETH) per token.

$HERMES: $ 0.00062 (2.6e-7 ETH) per token.

Post-Consolidation Actions: 100% of redeemed $HERMES and $MAIA tokens will be kept in the treasury for liquidity purposes.

3. Duration:

• A 1-month consolidation window will begin upon governance approval and contract funding.

Why This Matters

The SCP is a win-win mechanism that delivers immediate and long-term benefits to the Maia DAO ecosystem:

• Liquidity Optimization: Consolidate protocol-owned supply to fuel Hermes V2's expansion and improve user incentives.

• Tokenomics Reinforcement: Reduces circulating supply, enhancing value accrual for long-term holders.

• Community Alignment: Rewards committed stakeholders while aligning incentives for future growth.

For a comprehensive overview of the program’s strategic rationale and mechanics, please refer to the full article: Liquidity Strategy Phase 1: Supply Consolidation Program (SCP).

Next Steps

1. Governance Vote: This proposal will be put to a community vote. If approved, the allocated funds will be transferred to the Buy Back Contract.

2. Program Launch: Upon funding, the 1-month consolidation window will commence, allowing participants to engage with the program.

Our Commitment

Maia DAO is committed to transparency, innovation, and creating long-term value for its community. The SCP is a decisive step toward strengthening the protocol’s foundation and positioning Hermes v2 as the leader in decentralized omnichain liquidity.

We encourage all community members to review the full details of the program and participate in the governance process to shape Maia DAO’s future.

Vote Options:

• Yay: Approve the allocation of 72.88 ETH to fund the Supply Consolidation Program.

• Nay: Reject the allocation and maintain current treasury allocations.