RIP #27 - Quarterly Redemptions

As mentioned in our most recent town carpet article (https://medium.com/@EthicalWriter/town-carpet-1-7-bef5eb1255da), going into the new year, we have been discussing how to reflect the current and future value of the treasury to token holders. This is a proposal to implement quarterly redemptions based on the liquid assets of the protocol, similar to the mechanism wonderland has in place, and using the redemption mechanism we previously deployed during our April 2022 redemptions.

The quarterly redemptions would be implemented as follows:

1. At the start of the quarter, the liquid backing per RUG, based on all liquid treasury assets, would be calculated
2. An announcement of the redemption will be posted 1 week before it goes live
3. The redemption contract will be set to the calculated liquid backing and go live for 1 week
4. The redemption contract will be initially loaded with $250K in stablecoins, more will be added if it approaches depletion
5. After one week, the redemption will close
6. Process will be repeated upon start of the next quarter

The purpose of this proposal is to create a link between the success of the protocol and the token value. Note, this would be for redemptions at LIQUID backing, this would not include illiquid/locked assets like the big pudgy. This provides a potential benefit for those who opt to not redeem, as they own a larger share of the illiquid assets when other RUG holders redeem for liquid backing.

An additional option to add to the quarterly redemption mechanism is a 15% penalty of the liquid backing, meaning that if you opt to redeem, you would receive 85% of the liquid backing, and the 15% penalty would be value that benefits remaining holders.

The voting options for this proposal are as follows:

1. Implement quarterly redemptions at liquid backing
2. Implement quarterly redemptions at liquid backing with 15% penalty
3. Do not implement quarterly redemptions