RCA-1 - Minting BTRFLY to Create Liquidity + Clarifications to Existing Articles (REDACTED CONSTITUTION AMENDMENT 1)

For more information, go to : https://commonwealth.im/redacted-cartel/discussion/3312-rca1-minting-btrfly-to-create-liquidity-clarifications-to-existing-articles-redacted-constitution-amendment-1

Summary

Following much discussion relating to the addition of protocol owned liquidity (POL), we’ve realised it’s important to create generalised exceptions to the 2nd & 5th articles of our constitution: relating to BTRFLY dilution & gifting of BTRFLY/PCV assets, respectively.

Specifically, we seek to implement exceptions for proposals that advocate the handling of liquidity in an automated manner. For example, BTRFLY can be minted for adding POL or for providing LP incentives etc, provided that the community voted to approveyes on the proposal.

The 5th article, whilst preventing the integration of community- wide bribes into proposals, interferes with novel partnerships, including: seed investments, treasury swaps, & payments to service DAOs. In addition, the wording of the 2nd & 5th articles will be changed to reflect any confusion that may arise relating to the issuance of bonds and bond fees.

RCA-1 (REDACTED CONSTITUTION AMENDMENT 1) opens the door for : Thecosomata; future POL maximisation work; the Votemak acquisition; treasury swaps; & seed investments.

Constitution Changes To Be Enacted

The 2nd article, currently : BTRFLY will not be diluted in the execution of any proposal (defined as issuance or supply increase beyond the rebase index; exceptions made for initial pBTRFLY). Examples: Permissible - Initial issuance of pBTRFLY tokens to initial investors and core team is permitted. Though the tokens are supply vested to ensure ecosystem stability. Non-Permissible - A proposal cannot grant token holders a distribution of any [REDACTED] ecosystem tokens, beyond what the stakers are entitled to, which is guided by the rebase index.

Will be replaced with : BTRFLY will not be minted or burned in the execution of any proposal, unless it relates to the creation of new bonds; operations to maximise liquidity; and/ or pBTRFLY distribution/redemption.

The 5th article, currently : BTRFLY and PCV assets will not be gifted to another party in the execution of any proposal (defined as not receiving immediate recompense, to include bribes). Examples: Permissible - rebase index is proposed to be changed due to governance vote Non-Permissible - proposal cannot be created to airdrop treasury assets

Will be replaced with : BTRFLY and PCV assets will not be gifted to another party in the execution of any proposal (defined as not receiving recompense). For clarity, this article does not preclude BTRFLY from being exchanged for services or items of value to REDACTED CARTEL, including seed investments, treasury swaps & payments to service DAOs.

This is a constitution amendment, and thus requires a higher majority of 66% of participating capital in favour - with a raised quorum of 5%