Fund New Protocol or Dissolve Treasury

Author: Charles, Atakan Date: April 11, 2025 Discussion Venue: Make Fun Discord

Background

Make.Fun was a bold and unconventional move to address the challenges left in Sonne’s wake. Initially envisioned as a charity-focused memecoin launchpad, it was designed to capitalize on Sonne’s strengths — robust tokenomics, deep veAERO holdings, and a highly engaged community — while channeling protocol earnings toward creditors. While the concept sparked attention, it ultimately failed to achieve the traction we anticipated.

Atakan, with development and administrative help from the Cod3x team, has been working through some major headwinds to make the platform a success. Shortly after launch, Make Fun rocketed to a top-3 slot in Base’s competitive launchpad market, behind only Virtuals and Clanker, mostly driven by the launch of TONY. But since then, adoption has waned and launchpads across the entire industry have struggled significantly.

Recent developments —both internal to the Cod3x organization and within the broader market-– have left us with a difficult choice to make:

1. Cease operations for Make Fun, liquidate the treasury and distribute to creditors.
2. Build a new protocol.

The purpose of this proposal is to hold a vote among creditors on whether to proceed with building a new protocol, or discontinue operations and disburse the treasury.

Option 1: A New Protocol

Over the past two months, we have been rigorously brainstorming new potential strategies. After countless discussions, we reached a clear conclusion: our greatest strengths lie in DeFi. Instead of reinventing the wheel, we decided to double down on what made Sonne successful in the first place.

In our view, the best business model in DeFi is perpetuals. It solves a real problem, thrives in both bull and bear markets, and offers uncensorable access to trading tokens, stocks, commodities, and forex. When executed properly, they generate significant fees with minimal liability.

We aim to build a perpetuals protocol on Sonic that leverages the original Sonne flywheel strategy, the current momentum of the Sonic network, and the fee-generating potential of perpetual DEX protocols.

Much of the initial strategy, business development, and research has already been completed; what remains is the actual development of the platform. As a team, we are well-connected within the Sonic network and believe we have a strong opportunity to build a highly successful perpetuals business.

You can read our recent article detailing the idea and more of the protocol specifics here: https://medium.com/@makefunbase/the-next-chapter-a95a035451e7

Budget and Timeline

Development timeline: 3 - 4 months Time to launch: 4 - 5 months Budget: ~$150,000 total Subject to increase or decrease depending on auditing needs and stochasticity.

Creditors are within their rights to ask for further details regarding the budget breakdown.

Option 2: Treasury Disbursement

In the event that the vote sides in favor of ceasing operations, the following will happen:

All liquid assets in the Make Fun treasury will be distributed to Sonne creditors, based on their SBOND holdings. The veAERO position will continue to be used to generate revenue, distributions of which will be made quarterly. We believe this is the best option considering the state of the market and the size of the position. Offloading that much veAERO will require us to sell at a very large discount (likely ~50%) and we don’t know how long it may take.

We are willing to continue to manage the position for free for the benefit of creditors, but if creditors would prefer to offload the entire position, we are happy to do so. Discussions in the Make Fun discord will determine whether another vote on this matter is warranted.

The Vote

Vote duration: 1 week, starting April 14, 2025 Vote type: ERC20 Balance Vote token: SBOND (Sonne Bond Token) Quorum: 500,000 SBOND

The current supply of SBOND is roughly 21,000,000. Around 33% of that still remains in the Make Fun treasury, to be distributed to the other affected protocols once they have detailed their distribution preferences to us. This portion of the supply will not be used to vote on the proposal.

If the vote does not reach quorum, we will assess the number of votes received along with the vote distribution to see if there remains a case to be made to make a decision.

Conclusion

To reiterate, all pre-vote discussions will take place in the Make Fun Discord. We appreciate everyone’s patience and thoughtful contributions as we navigate the path forward. We understand this process hasn’t been easy—in fact, it’s been incredibly difficult—but we're doing our best to salvage what remains and act in the best interest of everyone involved.

Thank you for taking the time to read, we’ll see you in discord.