Background

The SDOG DAO was established to attempt recovery of funds from a prior fundraising organization. The initial multi-sig signers were approved by the community through a vote on Snapshot ending December 5, 2021 to pursue recovery efforts and explore viable projects.

Following that community vote, the multi-sig signers evaluated multiple project opportunities and attempted to launch two initiatives:

1. Flask - An in-house developed project
2. Vivid - An NFT project through strategic placement

Prior to the placement with Vivid, two of the original multi-sig signers resigned. The remaining signers selected their replacements, resulting in a configuration where two multi-sig signers were involved in the Vivid project, two were involved in Flask, and one was not involved in either project.

While Flask did not result in a commercially viable product, Vivid proceeded to conduct an NFT launch utilizing approximately $245,000 of DAO funding. Following a successful NFT sale, the multi-sig signers attempted to negotiate repayment terms with the Vivid team. Unfortunately, the team, which also controlled the original Discord server, took the server offline during these negotiations. This resulted in a loss of communication channels and records from the original negotiations, making further meaningful dialogue unsuccessful.

In response to these circumstances, the three remaining non-Vivid multi-sig signers consulted with attorneys to understand possible recovery paths and reported the incident to law enforcement. Legal counsel determined that initiating a recovery effort would require, at minimum, the total remaining funds in the DAO treasury. Flask operations were subsequently suspended.

The multi-sig signers had hoped that an increase in market value of the DAO's assets would provide sufficient resources before any statute of limitations would expire on the Vivid matter. Unfortunately, this has not materialized.

Proposal

After much deliberation and careful consideration of all available options, the remaining multi-sig signers propose the following resolution:

1. Ratification of Multi-Sig Decisions This vote will ratify all decisions made by the multi-sig signers since the prior Snapshot vote starting July 25, 2025.

2. DAO Termination and Asset Distribution

• A redemption contract will be deployed and funded to distribute the SDOG DAO treasury assets
• Each SDOG token holder may submit their tokens to the contract within 20 days of its launch
• Token holders will receive a proportional share of the SDOG treasury, paid in AVAX The distribution amount will be calculated as: (Total Treasury Value as of June 30, 2025) ÷ (Total Circulating SDOG Tokens as of June 30, 2025)

3. Redemption Period and Final Distribution

• Token holders will have 20 days from the contract deployment date to redeem their SDOG tokens
• After the 20-day redemption period expires, any remaining funds will be distributed to the three remaining multi-sig signers as payment for their services to the DAO and reimbursement of expenses incurred as manual payments.

4. DAO Termination

• Following the completion of the redemption process, the SDOG DAO will be terminated, cease all ongoing operations, and cease to exist
• All SDOG tokens held by the redemption contract or by the DAO will be burned

5. Preservation of Vivid Recovery Rights

• Redeeming and burning SDOG tokens through this process does not extinguish any claims that token holders may have regarding the Vivid matter
• DAO participants agree that any future potential recovery from the Vivid project will include token holders who redeemed their tokens, with their pro-rata share calculated based on their SDOG token holdings as of their redemption date
• This redemption process applies only to the distribution of remaining treasury cash assets and does not affect potential future recovery rights

Voting Parameters

• No quorum requirement
• Simple majority rule: If a majority of voters vote in favor of this resolution, it will be accepted and implemented
• Voting period: 5 days to cast votes on Snapshot
• Implementation: The redemption contract will be deployed and funded shortly after vote conclusion

Redemption Contract

The redemption contact and instructions will be disseminated prior to the start of the 20-day redemption period via snapshot.

Closing Statement

The remaining multi-sig signers have made this proposal after extensive deliberation and after determining there is no viable path forward for the DAO's recovery efforts. We recognize that these circumstances arose from a challenging situation from the outset, attempting to recover funds and navigate complex projects with a diverse team of individuals who were, for all practical purposes, randomly brought together through internet-based collaboration.

We wish all SDOG token holders and anyone who was affected by the original SDOG fundraising situation the very best for the future. While we had hoped for a different outcome, we believe it is time to bring closure to this unfortunate chapter and provide token holders with the opportunity to recover their proportional share of the remaining treasury assets.

This proposal is submitted by the remaining SDOG DAO multi-sig signers.

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