KIP-20: Treasury Sale to Fund ETH for DAO Vault

KIP Type: Non-Constitutional

Abstract

$100,000 USD worth of KARRAT, calculated at the time of transfer from the KARRATco treasury wallet, dispersed to the SubDAO wallet. The MPH SubDAO will sell KARRAT from the KARRATco treasury to raise a minimum of $5,000 in ETH to initiate the Arrakis Pro vault, coordinating with the Arrakis team for setup and providing a wallet for deposits and withdrawals. Sales will continue to reach a target of $100,000 in ETH, with no set end date, adjustable based on market conditions and vault performance, to fund the vault for enhanced KARRAT/ETH liquidity on a new Uniswap V4 pool. Sales will utilize a Gnosis Safe multisig with Flashbots RPC (or similar) to prevent MEV, targeting a 0.5–1% price impact per trade. Depending on vault performance, KARRAT may be deposited into the vault instead of being fully sold.

Motivation

This KIP builds on the Arrakis Funding KIP (https://forum.karratcoin.com/t/karrat-liquidity-vault-funding-preparation/310), which proposed enhancing KARRAT/ETH liquidity to reduce slippage and support ecosystem growth. Selling KARRAT tokens responsibly from the KARRATco treasury sets up and strengthens the Arrakis Pro vault, aligning with KARRATco’s goals for a robust gaming and entertainment ecosystem.

Rationale

The proposal supports KARRATco’s mission to foster a decentralized gaming ecosystem by improving liquidity, ensuring transparency (via ongoing My Pet Hooligan DAO chat discussion), fairness (market-price sales with MEV protection), and sustainability (flexible strategy based on vault performance).

Key Terms

• Price Impact: Percentage change in token price caused by a trade, per Uniswap’s interface.
• Gnosis Safe: Multisig wallet requiring multiple signers (mphsubdao.eth) for secure transactions.

Specifications

• Platforms: Existing Uniswap KARRAT/WETH pool, Gnosis Safe (mphsubdao.eth), Flashbots RPC (or Eden Network/MEVBlocker).
• Initial KARRAT Sale: Sell KARRAT from KARRATco treasury to raise at least $5,000 in ETH for vault setup, via Uniswap Universal Router.
• KARRAT Trade: Post-vault setup, sell KARRAT daily (~$1,667/day, adjustable) to raise $100,000 target in ETH, 0.3–0.5% slippage, using Universal Router. Deposit KARRAT to vault if performance suggests better outcomes.

Steps to Implement

• Sell KARRAT from KARRATco treasury via Uniswap Universal Router, using Safe with Flashbots, to raise at least $5,000 in ETH.
• Coordinate with Arrakis team to set up Arrakis Pro vault once $5,000 in ETH is obtained, providing a designated wallet (e.g., Gnosis Safe address) for deposits and withdrawals.
• Deposit initial $5,000 ETH to Arrakis Pro vault to start operations.
• Swap ~$1,667 in KARRAT daily via Uniswap Universal Router, monitor via Uniswap/DexScreener, or deposit KARRAT to vault based on performance.
• Periodically deposit ETH to Arrakis vault as KARRAT is sold.
• Ongoing discussion with community in My Pet Hooligan DAO chat.

Timeline

• Milestones: Initial KARRAT sale (3 days), Arrakis coordination and vault setup (3 days), KARRAT swaps (ongoing, adjustable), periodic vault deposits (weekly).
• End: No set end date; continue until $100,000 target is met or vault performance dictates KARRAT deposits.

Overall Cost

Uniswap fees (dynamic, hook-dependent), Flashbots tips, $500 gas budget. Net ETH: $100,000 target after fees.