FIP 006 - Treasury Diversification

Summary

This vote follows up FIP 006 - Treasury Diversification on the Forum.

As part of onboarding strategic partners into the Float ecosystem the Protocol offers to swap up to 25,200 BANK tokens from its treasury for ETH with key builders and prominent figures in the DeFi space. Vote in favour to proceed with the treasury diversification, vote against if you are not in favour of the diversification.

Motivation

This proposal is intended to aid with development of Float Protocol and allow it to both prosper and solidify its position within DeFi by onboarding prominent members of DeFi into the Float ecosystem. This treasury diversification provides the Protocol with funds to pay for the necessary costs (node providers, hiring, Community incentives etc.) to allow Float Protocol to reach its full potential without additional price pressure on BANK.

Strategic Partners

The partners participating in this treasury diversification round include the following, in alphabetical order:

• 0xMaki, Fearless leader at Sushiswap
• Ana Andrianova, Founder and CEO of Akropolis
• Batuhan Dasgin
• Eden Block, an early-stage blockchain and crypto venture capital firm whose mission is to back the builders of the new Open Internet.
• Evgeny Gokhberg, Managing Partner at Re7 Capital. Re7 provides strategic liquidity into DeFi to shape the financial ecosystem of tomorrow.
• Freddie Farmer, Yield Farming at Birth, ex-Wintermute
• Ivailo Jordanov (7percent Ventures)
• Katya Kovalenko, Angel Investor, partner at P2P Capital, been focusing on supporting core blockchain infrastructure for the last 5 years. Formerly finance professional in the energy sector. (3 addresses)
• The LAO, a DAO supporting the blockchain ecosystem
• Lyuben Belov, Founding partner at Launchub Ventures
• MCV, a for-profit DAO that invests into early-stage Decentralized Applications
• Santiago Roel Santos, Partner at ParaFi Capital
• Sergei Chan (BlockScience)
• Sunil Srivatsa, Founder and CEO of Saddle Finance

In addition one strategic partner has asked to remain private. Here is a short description about them:

• Been in crypto since 2013. Ex-CTO at a successful crypto startup and now working on defi and smart contract infrastructure.

Terms

The terms of the treasury diversification are as follows:

• Up to 25,200 BANK tokens from the Treasury (~15% of total BANK token supply)
• The precise amount allocated to each strategic partner is left to the core team based on individual circumstances and to allow some privacy, but no partner will receive more than a 2.9% allocation of total supply.
• $50 per BANK token in return for 1 year lock-up on BANK
• Inability to stake locked tokens
• Voting power in the Float Protocol DAO according to locked tokens
• On chain via a smart contract
• All the addresses are on chain and will be whitelisted for the swap with the treasury. Strategic partners are allowed to create fresh addresses.

Final Remarks

From the beginning, ever since Float Protocol’s democratic launch, one of the main aims of the Protocol has been to get supporters for the long haul. These key DeFi participants and builders shall be advocates, advisors, strategic partners and resilient supporters of the Protocol over the long term. These strategic partners have been chosen for numerous reasons, namely, their experience in the crypto ecosystem and their rare expertise in building high-calibre platforms for web3. The diversification of the treasury will aid with potential integrations further down the line and allow the Protocol to hire and incentivise Community members as we grow towards becoming the unit of account of the crypto economy.

The Vote

It is proposed to finalise the transaction in a swift manner as this is believed to be in the best interest of Float Protocol going forward. Vote in favour to proceed with the treasury diversification, vote against if you are not in favour of treasury diversification.