Operation JonesDAO Investment

After weeks of insightful discussions with the JonesDAO team, [REDACTED] has been able to secure an allocation for our DAO in their seed round for the $JONES token (subject to governance approval).

The terms of the seed round are as follows:

• up to $500,000 allocation
• $3.10/JONES
• $5.27M Circ. Market Cap for seed round, $11M Circ. Market Cap at TGE
• $31M Fully Diluted Value, $64.7M FDV at TGE
• Paid in 3CRV accumulated through CRV farming
• 3 month cliff, followed by 6 months of vesting

What is JonesDAO? JonesDAO is a strategy, liquidity, and yield protocol for options. The protocol has four products:

Jones Vaults: With 1 click, users will be able to access the best yields with actively managed, fully optimised, and hedged options strategies. The PnL of the vaults is denominated in the vault asset, with the goal being to accumulate more of the asset over time. Jones Vaults will seek to generate risk-averse and stable yields in all market conditions.

jAssets: Fully composable yield-bearing asset tokens that unlock liquidity and capital efficiency for assets locked in options strategies. For example, a user may deposit 1 ETH in the ETH Jones Vault, and mint 1 jETH. jETH will accrue value as the vault generates yield. The user may lend/borrow jETH, or swap their jETH back to ETH, at any point in time.

Auxiliary Jones Vaults: These cater to different risk profiles, and will deploy more directional/aggressive options strategies. These vaults have variables ratios of selling/buying options according to their risk profile. Auxiliary vaults cannot be used to mint jAssets.

Treasury Management: JonesDAO helps DAOs generate risk-averse, sustainable yield on their treasury assets, by whitelisting them for Jones Vaults and devising bespoke options strategies when necessary.

Website: https://jonesdao.io/ Twitter: https://twitter.com/DAOJonesOptions Discord: https://discord.gg/jonesdao Docs: https://jones-dao.gitbook.io/jones-dao/

What will this partnership look like? JonesDAO whitelists [REDACTED] Cartel for all current and future Jones Vaults, and provides bespoke treasury management services when necessary to generate risk-averse, safe, and sustainable yield on a portion of treasury assets.

[REDACTED] Cartel deploys, at their full discretion, gOHM and any other assets, with the JonesDAO for treasury management to generate yield via risk-averse and sufficiently hedged options strategies, with the goal of accumulating more gOHM over time. JonesDAO creates products, such as new Jones Vaults, for xBTRFLY when it is viable to do so, therefore enabling the community to access sophisticated and safe options strategies to generate additional yield on their assets.

From our discussions with JonesDAO, we discovered they align well with our partnership with Dopex and plans to introduce DPX bonds, while using Dopex products to manage our treasury. JonesDAO can automate the treasury management for us with Jones Vaults that are built on top of Dopex. We also get additional layers of yield on our deposits: $JONES tokens, lending yield for our vault deposits, and potentially $CRV tokens if jAsset LPs go this route.

Furthermore, on our path to accumulate large stakes in all veTokens, we can use the JONES we accumulate through this transaction to lock up for veJONES, giving our treasury a new revenue stream of fees and bribes, additional governance power, and a new use-case for $BTRFLY meta-governance. Potential airdrop(s) recieved from our DAOs early participation will route back to stakers of $BTRFLY.

Find further information around the tokenomics on the commonwealth proposal: https://commonwealth.im/redacted-cartel/discussion/3602-operation-jonesdao-investment

Snapshot Period The polling process begins now and will run for at least 48 hours (ending Feb 1st 2021 at 5:00pm EST).

Choices: $500,000 investment $250,000 investment Do Nothing