Settlement of DINERO Allocation

Settlement of DINERO Allocation Summary

This proposal outlines a comprehensive plan for the distribution and settlement of the DINERO tokens currently held by the Synonym (formerly New Order) treasury. The proposal includes:

A phased distribution of 1,000,000 DINERO tokens per month to rCT holders for 7 months, followed by one additional month with 325,000 distributed. This represents the entirety of vested DINERO tokens currently held by the Synonym treasury. The purchase of the remaining vested DINERO tokens (39,780,000 DINERO) by the Dinero Protocol treasury at a price of 302,000 DAI. This price is equal to the 30 day average price of DINERO multiplied by an illiquidity discount at the time of proposal posting. The Synonym treasury will retain the DAI received from the conclusion of the vest for operational flexibility. These actions aim to align the interests of all parties, unlock value for rCT holders, and conclude the Synonym vesting arrangement with Dinero Protocol in a transparent and mutually beneficial manner.

Background

In December 2021, New Order was allocated 3.6% of Dinero Protocol’s (formerly Redacted Protocol) total token supply in recognition of its role as the incubator for the protocol. This allocation, totaling 46,800,000 DINERO tokens, was granted to New Order (now Synonym) for providing early-stage support, resources, and guidance during Dinero Protocol’s development and launch.

These DINERO tokens were subject to a vesting schedule and were to be non-transferable and non-saleable per the original agreement. The intention of the allocation was to economically bind the New Order (Now Synonym) and Redacted (Now Dinero) to foster a value additive relationship.

With the rebranding of New Order to Synonym, and the evolving landscape of both ecosystems, it is now appropriate to resolve the vesting arrangement in a way that benefits both communities.

Proposal Details

1. DINERO Distribution to rCT Holders

Amount: A total of 7,325,000 DINERO tokens will be distributed to rCT holders over a period of c. 8 months. Rationale: Distributing a portion of the DINERO tokens to rCT holders ensures that the Synonym community, which supported the incubation of Dinero Protocol, continues to benefit from this allocation. This also provides rCT holders with a liquid asset while maintaining token stability in the market. The additional assets received by Synonym will enable continued development of the Synonym Protocol beyond their upcoming V2 launch. Implementation: The distribution will be executed on-chain using a smart contract to ensure transparency. Upon proposal passing, each month, rCT holders will receive a proportional allocation based on their holdings at the time of the distribution snapshot. 2. DINERO Token Purchase by Dinero Protocol Treasury

Total Remaining Vest: 39,780,000 DINERO tokens remain unvested and remain non-transferable upon distribution. Proposed Buyout Price: 302,000 DAI will be paid by the Dinero Protocol treasury in exchange for the remaining vested DINERO tokens. Rationale: This buyout arrangement enables the Dinero Protocol treasury to regain control over the majority of the vesting allocation, while providing Synonym with immediate liquidity in DAI. It offers a clean resolution to the vesting structure in a way that protects market dynamics and allows both treasuries to allocate resources more efficiently. Price Justification: The price of 302,000 DAI represents a fair valuation, balancing the interests of both the Synonym and Dinero Protocol communities, while accounting for the original non-transferability and non-saleability of the vest. Timeline

Discussion on this proposal will be live for 7 days with voting on Snapshot beginning immediately after.