[Formal Vote] Treasury Proposal

• Title: Treasury Proposal
• Author: Operation Team
• Submission Date: 2022/12/09

Summary of Temperature Check: The temperature Check for the treasury proposal ended on Nov 7th. Thank all VeMulti holders for supporting and participating.

<Lock 1 million for the Treasury> accounted for 177,358(93.89%) Multi tickets; accounted for 11,546(6.11%) Multi tickets.

Introduction: The construction of the MultichainVerse by MultiDAO requires financial support. It funds activities—marketing, business development, project incubation—that grow Multichain, and generate more profit to distribute to veMulti holders and increase revenue in addition to existing protocol fees.

Abstract: The purpose of MultiDAO is to build a cross-chain ecosystem as our MultichainVerse. The methods to achieve that are by enhancing marketing collaboration, developers supporting service, project incubation, deeper level business development, etc. In doing so, Multichain established an operation group from veMulti holders to kick off the MultiDAO in early August.

The purpose of the current governance structure or requirements in MultiDAO is to aim for an efficient and long-vision group that makes sure the process of establishing MultichainVerse is happening in a sustainable way. For details of the purpose please check the statement from the project team, Here.

Motivation: According to the previous discussion in the MultiDAO TG group, many people raised questions about the proposal to lock a new veMULTI from the uncirculated MULTI, the percentage of SBT score, etc. It is apparent that many misunderstandings and a lack of information help holders make informed decisions. The operation group will endeavor to be more transparent and forthcoming with its proposals and plans in the future.

Establishing the Treasury, while reducing fees from veMulti holders by approximately 20%, is expected to generate new streams of income, and increase the profit and value of MULTI in the long run. Beyond mere profitability, this move aims to cement Multichain as the top cross-chain provider in the crypto space. We could get a peek at the roadmap and budget forecasting in the Forum Link. There are and will be many solid actions that are to build the cross-chain ecosystem. Besides that, the operation group will release a quarterly report that includes the project/dev collaboration activity, project incubation, or major operations.

Specification & Rationale: Benefits

• Supporting people/teams that actually help with the ecosystem
• Supporting more types of incubation/events in MultiDAO
• Supporting Guilds to build with different function segments
• Support MultiDAO establishing ecosystem collaboration with major projects

A sufficiently resourced treasury could help MultiDAO have a more agile response rather than submitting a new funding proposal for every need of the rapidly changing web3 world. This way, we aim to improve and develop great products, broaden business development width, and establish more strategic ecosystem partners. With the special collaboration with different projects and partners, MultiDAO members could get exclusive offers from different projects, such as whitelist or airdrop from different projects. The MultiDAO, together with its proposed funding mechanism that is the subject of this vote, is how we propose to leverage the great foundation our community has built and further attract more talents to enhance it.

Downside

• Decreasing fees for Multi holders by locking extra 1 million multi as veMulti

Extra info:

1. The asset security will be protected by an MPC wallet powered by fastMPC network. The project is one of the earliest projects supported by MultiDAO as a third-party project. Team members and selected individuals will manage the multi-sig wallet in the short term until we have elected a Council.

2. In order to maintain the vePower of veMULTI for the Treasury, we will keep the vePower of veMULTI at 1 million at all times, meaning that its vest value will not decrease over time.

3. The fees generated by the 1 million locked multi will fund activities and operations, and incubate promising projects. Any remaining amount will be used to top up a 20,000 USDC reserve—as a buffer to manage month-month fluctuation in spending. Beyond the reserve, unused fees will be returned to veMULTI holders in the next quarter.