Private Financing to Extend Runway

TL;DR (Summary)

Pear Treasury proposes a private financing deal to raise US $2-4 million from a small group of Hyperliquid-aligned US institutional funds.

The number of PEAR tokens to be sold from Treasury is to be determined, with all tokens coming from the pre-minted Treasury allocation – ensuring no inflation or dilution.

Tokens will be subject to a cliff until 28 Sep 2025, followed by linear daily vesting over 12 months. The raise provides non-dilutive capital that extends the operational runway beyond May 2026, enabling Pear to invest meaningfully in protocol growth, product development, and talent acquisition during a critical expansion phase. Future token restructuring remains a potential lever on a 12 month horizon.

**Recommendation: **Vote “YES” to fuel Pear’s growth and ecosystem leadership.

Background & Problem Statement

Pear currently handles US $1-5 M in daily trading volume. Trading fees are 0.06% on both open and close.

However:

• Referral links grant a 10% fee discount.
• stPEAR tiers grant up to a 50% discount.
• Net revenue is split 80% to stakers / 20% to Treasury, with Treasury also paying out volume-based rebates.

Under this model, the operational budget cannot scale with protocol growth. Treasury runway is expected to end around May 2026.

Two primary solutions were explored: a. Reduce staking rewards (e.g., from 80% to 50%). Cons: Undermines staking demand → weakens fee discounts → lower trading volume and retention.

b. Private Treasury token sale to strategic partners. Pros: Non-dilutive capital; maintains staking incentives; secures long runway; brings aligned strategic investors.

This proposal favors Option b. The goal is to equip Pear with resources to attract world-class talent, invest meaningfully in product and ecosystem growth, and take bold positions as we expand across Hyperliquid and broader DeFi rails.

Proposal Details

Raise Amount: US $2-4 million total (wired in USDC) Token Allocation: To be determined – tokens will be drawn from pre-minted Treasury supply (non-inflationary) Counterparties: 4 US institutional funds, all active Hyperliquid users & ecosystem VCs (names under NDA; will be disclosed to the multisig) Valuation Basis: Suggested: 30-day TWAP on Hyperliquid-PEAR pair + 15% premium, but to be finalized in raise process Lock-up: Cliff: Until 28 Sep 2025 (post-private-sale unlock) Vesting: Linear, daily, over 12 months (ends 28 Sep 2026) Governance Guarantee: Tokens remain non-transferrable during cliff; vesting stream enforced via on-chain vesting contract controlled by Pear DAO multisig

Use of Proceeds:

Expand Pear's institutional-grade product suite Deploy vaults and APIs on HyperEVM Re-launch on Hyperliquid Spot Orderbook with deeper liquidity Accelerate growth and onboard talent Position the protocol for long-term sustainability and optional future buybacks through new revenue lines Treasury & Runway The non-dilutive raise adds ~US $3 million in stable reserves, extending the Treasury runway well into 2026, and providing the flexibility to aggressively pursue growth during a critical period for Hyperliquid ecosystem expansion. 4.1 Vesting Schedule Tokens will begin unlocking gradually from 28 Sep 2025 at a fixed daily rate, ensuring measured and predictable distribution into the market.

4.2 Strategic Benefits Investors are ecosystem-aligned and will amplify distribution through their networks. The round creates space for rapid expansion of Pear’s capabilities and visibility among institutional users.

Alternatives Considered Reduce staking rewards to 50% – Likely outcome: stPEAR TVL drops 40–60% within 3 months, fee discounts erode, trading volumes decline. No action – Treasury runs dry by March 2026; emergency tokenomics revisions become necessary, with uncertain outcomes.

Voting

Snapshot vote: 5 days (23 Jun → 27 Jun 2025). Quorum: 20 M PEAR (or stPEAR) Passing Threshold: ≥55% YES

Voting Options:

YES – Approve private raise and authorize sale from Treasury on terms above. NO – Reject and explore alternative funding/tokenomics options.

Discussion Ongoing discussion and Q&A will take place in the Pear Discord governance forum. Stakeholders are encouraged to provide input.