[DIP-26] ssv.network DAO Four-Year Budget (2024-2028)

NOTE: [...] indicates obmission. For extended details, please refer to the discussion link.

Proposal Summary

[...] the ssv.network DAO (hereinafter: “DAO”) would like to present the following proposal to secure a budget for the next 4 years and diversify the DAO Treasury [...]:

• Support an estimated DAO operational budget to maximize network growth and advancement over the next 4 years.
• Introduce higher levels of predictability and temporary token inflation to conservatively finance that 4-year budget.
• Partly counter the impact of minting by burning Network Fees collected during a set period as outlined below (i.e., permanently removing them from circulation). [...]
• Promptly build an additional funding reserve of USDC for the DAO on top of the operational budget to secure the project’s longevity and protect its stakeholders.
• Disabling the CDT token upgrade contract and the Incentivized Testnet contract and withdrawing the unclaimed tokens for the DAO.
• The SSV Foundation (hereinafter: “Foundation”) will negotiate with service providers the sale of such tokens over time to diversify the DAO treasury and have the least possible impact on the market.

[...]

Estimated Budget and its securing and execution

The estimated budget for the next four years is outlined below [...].

Projected Annual Expenses:

• 2025: $12,760,000
• 2026: $14,088,539
• 2027: $14,180,349
• 2028: $14,277,838 (hereinafter: “Four Year Budget”)

Projected Monthly Expenses:

• 2025: $1,063,333
• 2026: $1,174,045
• 2027: $1,181,696
• 2028: $1,189,819 (hereinafter: “Monthly Budget”)

[...]

The Four Year Budget consists of two tracks: the Reserve Track and the Operational Budget Track. Both will be managed by the ssv.network DAO Multi-Sig Committee (hereinafter: “MC”), the Foundation, and service providers. In managing both tracks, the MC will batch a mint transaction every month in the first, and from time to time, the second scheduled batch as outlined in [DAO Contributor: Proposal for Engagement as the DAO’s Master of Coin] (hereinafter: “First Scheduled Batch” and “Second Scheduled Batch”, respectively, and together “Scheduled Batches”). The number of SSV tokens this transaction will include will be described for each track separately below.

Similarly, every transaction of Scheduled Batches will include a transaction to burn SSV tokens in the Network Fee contract accrued up until the First Scheduled Batch or the Second Scheduled Batch. The burning of SSV tokens in the Network Fee contract will stop effective July 1st, 2025. After that, the DAO will reassess the network and incoming fees, possibly proposing a new plan for fee utilization or continuing to burn the network fee.

Reserve Track

[...]

• SSV Price: Is the closing price of the SSV token on the last day before any of the Scheduled Batches.
• Reserve Track Maximum: Is the upper limit of total USDC tokens to be gained under the Reserve Track, determined by the SSV Price.
• Monthly Maximum: Is the maximum US $ value of the SSV tokens to be minted, based on the SSV Price and subject to the Reserve Track Maximum.

SSV Price	Reserve Track Maximum	Monthly Maximum
<$20	$0	-
$20-30	USDC 15 million	$1.0 million
$30-40	USDC 15 million	$1.5 million
$40-50	USDC 20 million	$5.0 million
$50-60	USDC 25 million	$25 million
$60-70	USDC 30 million	$30 million
$70-80	USDC 35 million	$35 million
$80-90	USDC 40 million	$40 million
$90-100	USDC 45 million	$45 million
$100-110	USDC 50 million	$50 million
$110-120	USDC 55 million	$55 million
$120-130	USDC 60 million	$60 million
$130-140	USDC 65 million	$65 million
$140-150	USDC 70 million	$70 million
$150-160	USDC 75 million	$75 million
$160-170	USDC 80 million	$80 million
$170-180	USDC 85 million	$85 million
$180-190	USDC 90 million	$90 million
$190-200+	USDC 95 million	$95 million

The MC will check the SSV Price and the Reserve Track Maximum before the Scheduled Batches and mint the amount of SSV as outlined in the table above and subject to its terms.

The Second Scheduled Batch will include a mint transaction, subject to and in accordance with the table above, only if, at the relevant time, the SSV Price has moved to a higher SSV price range according to the table above and is higher than the price range set during the previous minting - the First Scheduled Batch of the same calendar month.

The MC will transfer any minted SSV tokens under this Reserve Track to the Foundation to be sold through the service provider chosen by the Foundation [...] in accordance with the SSV Price in the table above. If the SSV Price is below 20 USD per SSV, no SSV tokens will be sold by the services provider chosen by the Foundation. If, as a consequence of this, certain tokens are not sold during any given month, the MC, as part of any Scheduled Batch, will deduct the Scheduled Batch mint from the already minted and transferred amount. Therefore, the service provider chosen by the Foundation will always have the amount of SSV tokens to be sold in accordance with the table outlined in the table above.

Operational Budget Track

As of January 2025 and until December 2028, the MC will mint in every First Scheduled Batch the Monthly Budget of the relevant year in SSV tokens based on the SSV Price. Half of the minted SSV will be stored in the Treasury, and the other half will be transferred to the Foundation to be sold by the service provider chosen by the Foundation. Minting and selling of the monthly operational budget can happen at any price level and isn’t subject to the terms applied to the reserve track.

Reserve and Operational Budget Tracks Common Provisions

The Foundation will guarantee [...]:

1. The daily sale of SSV tokens will be limited to 1.5% of the aggregate market daily Volume (24h) as indicated on CMC’s page dedicated to the SSV token.

2. Get the best reasonably achievable market price for the sold SSV tokens.

3. If possible, facilitate the transfer of the entirety of the proceeds received from the service provider directly to a designated MC wallet. If not feasible, transfer any such proceeds from the Foundation to a designated MC wallet as quickly as possible.

4. The Foundation will take every compliance and legal precaution necessary to ensure, first and foremost the compliance of the DAO and the compliance of the Foundation in this endeavor. This may include but not be limited to obtaining legal memos, advice, or opinions from relevant legal professionals prior to and during the execution of this proposal.

5. Approving and facilitating the necessary legal or corporate structures i.e., the implementation of a DAO proposal. For the avoidance of doubt, this shall include the formation of a subsidiary or subsidiaries in the British Virgin Islands as may be required for the purposes of a sale or for the distribution of tokens released to the SSV Network.

Additionally, [...], the Foundation will have a budget of 250.000 USD to pursue its efforts listed under Article 8 Section A subsection (vi) of the By-laws of the SSV Foundation.

[...] the SSV Foundation will receive an increase to its annual budget as defined in [DIP-13].

The new annual budget will be:

• 2025: $400.000 and 10,000 SSV;
• 2026: $472.966,65 and 4.000 SSV
• 2027: $501.114,98 and 4.000 SSV
• 2028: $531.570,73 and 4.000 SSV

Any leftover budget from the previous year will be deducted from the budget in the new year.

The SSV Foundation will have at its disposal an additional $900.000 for the indemnity agreements of the MC.

CDT to SSV Conversion Contract and SSV Testnet Contract Withdrawal and Deactivation

Following the expiry of December 31st, 2024, the MC will execute the relevant transactions in the First Scheduled Batch, to transfer the SSV currently in the relevant contracts to the MC Treasury Wallet, and to render inoperable (to the extent possible) the CDT to SSV Conversion Contract and the Incentivized Testnet Distribution Contract.

[...]

[...] the Foundation is hereby instructed to publish a prominent message on all channels and DAO-managed assets [...]. This message will be posted each month at least 3 times in reasonable time frames until December 31st and must include the exact following text:

After the expiry of December 31st, 2024, the ssv.network DAO will withdraw SSV stationary in the CDT to SSV conversion contract and the Incentivized Testnet contract. After December 31st, 2024, claims from these contracts will not be possible. Please withdraw your tokens on time.

Once the transaction to withdraw from both the CDT to SSV Conversion Contract and the SSV Testnet Distribution Contract has been executed successfully and the tokens are in the DAO Treasury, the MC will observe the amount that has been withdrawn and burn 50% of it. From the tokens, while transferring the remaining 50% withdrawn amount:

1. 150.000 SSV will be transferred to a dedicated wallet, which cannot be used for operational or budgetary expenses. It will be used for the incentivization of new growth of the ssv.network, which will await a new DAO proposal for its approval and use.

2. 200.000 SSV tokens will be transferred to a dedicated wallet, which will be used exclusively for [DIP-25] Enhancing ssv.network DAO voting engagement.

3. Any remaining withdrawn tokens will be burnt.

If it so happens that the SSV withdrawn from the CDT to SSV Conversion Contract and the SSV Testnet Distribution Contract is insufficient to cover the transfer of 150.000 SSV to a dedicated wallet for growth of the network and the 200.000 SSV allocated in [DIP-25] Enhancing ssv.network DAO voting engagement, both, as indicated above, the DAO will be required to mint the shortfall as indicated in [DIP-2] Multi-Sig Committee.