Governance #MIP-001 - Emergency Proposal to Convert 550k DAI into ETH via UniSwap, Curve or 0x

Title: Convert 550,000-DAI into ETH
Author: tankbottoms.eth Date: 2022-06-13

Background

Movement DAO has not officially established governance due to an operational pause while Movement DAO developers contribute to Juicebox DAO's tooling. While individuals have been working on a set of proposals, none have been submitted and ratified. Nonetheless, the crypto market and Ethereum in particular has fallen from a high of $4,500/1 ETH from November of 2021 to $1,227/1 ETH as of June 2022. Fortunately, Movement DAO has maintained the vast majority of its treasury in DAI (summarized below). While Movement DAO's ETH holdings have been reduced to 1/3rd of their original value, ETH represents less than 10% of the treasury.

The Movement DAO treasury has allowed contributions since February 2022. Movement DAO has not started its first funding cycle (Juicebox terminology for a payroll), and thus the funds have remained in Movement DAO's Gnosis Safe.

Movement DAO's Gnosis Safe Ethereum address is movedao.eth, or 0x143cC0A996De329C1C5723Ee4F15D2a40c1203c6. The safe contains the following assets and balances:

• 14,379,850.00 DAI ($14,352,387.25837 USD)
• 867.57986098 ETH ($1,063,245 USD)

Meaning the safe has a a total balance of 15,415,632.41 USD, given the exchange rate $1,227.99 / 1 ETH.

Abstract

This proposal's goal is to authorize the existing multi-signature signers on an emergency basis (to be defined below) to execute a test transaction of 10 DAI to ETH and full transaction of 540,000 DAI to ETH. The DAI contract's Ethereum address is 0x6B175474E89094C44Da98b954EedeAC495271d0F.

The exchange of 540,000 DAI is expected to collect at least 440.992 ETH.

Motivation

Without on-chain analysis, the acquired ETH contributed to Movement DAO between Feb-April 2022 was valued from $3,240 to $2,400 and is half of the low water mark, increasing the DAO's ETH holdings to 50% poses a minimal financial risk to the DAO's overall fiscal health.

Discussions

Prior discussions were made within the Movement Discord with no contrary position taken, clarifications were sought in the form of very specific pricing and execution plans. This proposal seeks to execute the transaction within 12 hours, or when the majority of the dao-lawfirm.eth trust contributors have publicly and explicitly signaled their support.

Previous discussions in Discord https://discordapp.com/channels/919071794332323903/919110068484587560/974782001427136622

And in the proposal-workshop https://discord.com/channels/919071794332323903/919110205336334337/975770807546552320

Definitions

Emergency proposals have yet to be formally defined. For the time being, any proposal which meets the following criteria should be enacted:

• A proposal on snapshot meeting the minimal proposal threshold of 5 ERC-721 MAPE tokens
• Either A. The proposal period is 12 hours, with the majority of token holders voting to approve the proposal OR B. dao-lawfirm.eth receives explicit affirmative instruction by trust/DAO contributors exceeding 2/3rds of the capital contributed.
• A proposal voted in the affirmative by all of the signing multi-signature signers (represented in two transactions, detailed above).
• Instructions are provided in the proposal are specific and lack any ambiguity.

Risks

ETH goes to 0 and is found to have some flaw where all liquidity is drained from the blockchain, and the existing DAI can not be converted to fiat.