QIP041: Use Market.xyz Green Leverage Locker Profits to Buy BCT

This proposal is to decide if we should use 100% of our profits from the Green Leverage Locker to purchase BCT.

Link to market: https://polygon.market.xyz/pool/5

As of QIP039, QiDao is seeding the Green Leverage Locker (GLL) with an initial 1M MAI in order to offer a low-cost way to borrow MAI against ReFi (Regenerative Finance) assets such as BCT or sKlima.

To position QiDao at the center of the green movement in ReFi on Polygon, actions must speak louder than words.

BCT has quickly become one of the essential assets in the current ReFi space. It's value increased steadily since it's introduction and legacy carbon markets are already accepting BCTs price signal for offline OTC trading of carbon offsets.

As the green committee's first initiative, we propose that 100% of weekly profits will be used to purchase BCTs. We will use the BCT to build a green treasury to further leverage upcoming green initiatives.

To demonstrate our commitment to climate action, we propose to properly burn portions of the BCT once Toucan's burn function is in place.

The DAO can vote on the amount of BCT to be burned. The Green Committee advocates a 50% burn rate. Assuming a 20% APY on the GLL, a BCT price of $7.7, and a time frame of 3 months, this gives a total of about 3000 tons of carbon offset and another 3000 BCT to use for future incentives.

Showing that monetary profits are not the sole goal of QiDao will help put us at the center of ReFi and manifest MAI as the defacto green stable coin.

The reach of this first step will also help us improve our reputation in the fast growing green communities such as Klima & Toucan protocol, bringing positive network for future vaults.

Motivation

• Position QiDao in the center of the upcoming ReFi movement
• Manifest MAI as the defacto green stable-coin
• Build reputation as a DAO taking action on climate change

Quorum Standards

The option with the most votes will be adopted.

Options

• Use GLLP to buy BCT and burn 50%: half of the BCT bought will be burned and the other half will be retained in the DAO
• Use GLLP to buy BCT and not burn: all BCT bought will be retained in the DAO
• Do not buy BCT

GLLP = Green Leverage Locker profit