Provide fair exit to FISH tokenholders

Dear Furends / Polycat community,

For those of you still active in the Polycat Telegram this vote doesn’t come as a surprise. For the less engaged FISH holders an overview of key events, leading up to this vote. I recommend checking the discussions in the Telegram channel to get a better view of the situation and participate.

Overview:

• Polycat introduced a DAO governance process on September 15 2021: https://polycatfinance.medium.com/and-nao-the-dao-ac92a4713c9c
• Since then one proposal has been put up for vote (December 4 2021) and implemented
• The community has expressed the desire to reallocate the treasury to protect it and to increase yield. These discussions started January 2022.
• A lot of effort has been put into this, in good cooperation with the operational team (the dev is not accessible to community members), without any results. - - The treasury allocation has not been updated since the initial allocation, despite very good reasons to do so to protect capital and increase yield.
• As a last attempt to achieve change, alignment of a snapshot proposal with the dev (which proved impossible) was bypassed and a snapshot vote was created to push for a treasury reallocation in April 2023. https://snapshot.org/#/polycatfi.eth/proposal/0x7e287fb57641918498935d49f5035a3441df272e14cb5e1de95930b53c939c2e
• The dev reacted positively to this towards the operational team, and the community worked together with the operational team to explore reallocations options.
• The dev wants everything to be fully automated and needs to update the code in order to reallocate the treasury as the old vault logic is not applicable to most current vaults. Defi changed, and became more diverse / complicated to automate.
• More than 2 months have passed without any proof of dev progress on this front.
• Defi moves fast and is full of risks. In order to manage a treasury effectively you need to be agile. More than a year without a change, and not being able to react to sudden events is not acceptable to manage a $1.65m treasury (June 26 2023).
• Our treasury lost money, which could easily have been prevented. The current yield generated by our $1.65m treasury is $23k annualized for an APR of 1.3%! This while we are exposed to highly volatile assets, abandoned protocols etc. It could be increased by multiples while lowering our risk profile significantly.
• The protocol itself earns circa one dollar per day. The treasury is the only thing that gives value to the FISH token.
• After more than a year of efforts (part) of the community has given up hope that we will return to a state of effective treasury management.
• As a result this snapshot is being launched to ask for a fair exit for FISH tokenholders who no longer wish to participate in the protocol.

Proposal:

• Give FISH token holders the possibility to exchange their FISH for a proportional amount of our treasury.
• The exact fair value of FISH should be determined in good cooperation with the team. It should follow the logic of dividing the total treasury value (currently $1.65m) by all non protocol owned tokens.
• If FISH holders opt-in to exchange their FISH for a proportional amount of the treasury, the remaining FISH holders can determine what to do with those tokens (e.g. burn or add to “DAO” / protocol wallet).
• If this proposal passes, a second proposal will be launched to agree on specifics.

Vote options:

1. Provide FISH holders the possibility to exchange their FISH tokens for a proportional amount of the treasury value.
2. Do nothing.