TIP-238: Token/DAO migration and rebrand to Overtime ($OVER)

id	Title	Status	Author	Description	Discussions to	Created
TIP-238	Token/DAO migration and rebrand to Overtime ($OVER)	Draft	Danijel	Migrate DAO token to $OVER and rebrand the protocol	Discord	2024-12-09

Simple Summary

This TIP proposes a protocol and token migration towards Overtime ($OVER) alongside other tokenomics and meta governance changes.

Abstract

This TIP lays out a summary of THALES DAO since its inception to this date, and the motivation towards embracing Overtime branding, and with it introduce a token migration and tokenomics changes, aiming towards simplicity and retail attention seeking. It lays out meta governance changes regarding tokenomics that would be needed for a smooth execution of this migration.

Motivation

Thales DAO was formed in the first quarter of 2021 (formalized a bit later via Synthetix governace link). This makes Thales DAO an almost 4 year old project. We've been through a full crypto cycle (mostly bearish one).

Thales started as a binary options orderbook. It then built the first (and to date still the only) decentralized Binary Options Automated Market Maker. Along the road we experimented and improved our know-how and established our innovative thinking with some fun stuff such as Thales Royale, Tale of Thales and Exotic markets.

But we always knew we wanted to take our Binary Options product and somehow tie it up with sports. Enter Linkpool and their Sports Oracles around mid 2022. The idea of Overtime Markets was seeded and development began.

It started with FIFA World Cup 2022 and only moneyline markets and house seeded liquidity.

Today Overtime has:

• Over 100 sports and leagues available
• Over 10,000 markets on any given day
• Over 200m in premium volume
• Over 50,000 users, none of which were ever denied a payout
• Offers a multitude of collaterals to bet with
• Offers anyone a chance to "be the house" and participate in liquidity providing

Little to say that it has come a long way.

The DAO recognized that Web3 sports betting is its best chance for a product market fit, and accordingly DAOs focus and resources shifted towards Overtime. And it worked, user's came, product excelled and has now reached product parity with the likes of Pinnacle, Draftkings, Stake.com, etc...

While I don't have exact data to back it at hand, I would boldly make a claim that at this juncture more people have heard and know of Overtime Markets, than Thales DAO.
Even those that have heard of both, seldom are aware of the connection of the two. The connection obviously becomes clearer as you delve more into Overtime and Thales, but at this point, much of potential attention is already gone.

And the said (user) attention is the hardest thing to grasp and maintain in web3. If we are indeed, and I do believe we are, on the cusps of a bull market, we need to make a bang ourselves to get noticed.

Marketing and BD wise, pushing both brands of Thales and Overtime, has been quite difficult. You just can't make an elevator pitch selling both to someone in web3. And as we had to choose, mostly we would emphasize Overtime, and boy, could that get a conversation flowing.

In summary this is where I think we are:

• Thalesmarket and binary options are in life support mode. I still think it has a lot of potential, but at this point we have learned on past "mistakes" with diluting focus and attention, and have chosen Overtime to give 99% of our collective brain spaces (and otherwise resources).
• Speedmarkets is kinda doing well on its own with little overhead (and marketing investments). Since TIP-202 changes PnL has been constantly on the rise.
• Overtime markets is breaking ATH every week. All metrics are continously on the rise and 99.99% of staking fees come from it.

With all the above (and much more, but we need to be at least semi succinct) in mind, I propose that we rebrand our DAO and token to Overtime DAO and $OVER token.

The singularity of product and brand will help us unite our efforts in breaking through a very noisy space. The rebrand is proposed alongside tokenomics changes that all aim for simplicity. Overtime is the leading retail facing web3 product, and thus it should aim to abstract all blockchain complexities when onboarding users, and that goes also for token exposure.
To that end, I propose that $OVER tokenomics are deflationary from start and that all platform fees go towards buyback and burn. This effectively means that single side staking alongside all its complexities is becoming redundant.

There are more reasons why I am proposing to abolish the staking system:

• A token migration will be extremely difficult with Staking still in place
• The staking contract is one of our oldest contracts running on an old Solidity version. At this point it also has a lot of unused vanilla code (e.g. gamified staking logic). If it were to be kept and migrate to a new contract, it would have to be written anew, which would set us back a lot migration wise.
• Having 80% of circulating supply in a single smart contract is just a huge "life ending" risk for the protocol.
• The overhead of understanding the staking mechanics, and getting diluted by those that do stake (at least during the times when THALES inflation was high), is just off putting to new users looking for a simple token exposure (e.g. CEX users).
• CCIP fees distribution accross multiple chains, while brilliant technologically, is a huge overhead to manage

More details on execution will be laid out in specification section

Specification

Rebrand the DAO to Overtime DAO

This is likely the most intuitive and simple part of the transition. Thales social will be renamed to Overtime where Overtime brand didn't already exist. Otherwise, Thales social's will be deprecated and Overtime will be the protocol's and DAO's public facing social account going forward.
The website thales.io will reflect all changes from Thales to Overtime. The exact new url of the protocol is TBD at this point while we seek available domains.

Newly formed Overtime DAO will still own all the smart contract and products that belonged to Thales DAO. This included Binary Options AMM contracts under thalesmarket.io and Speed Markets contracts available for interaction at speedmarkets.xyz.

The exact layout of the products and websites going forward is yet to be determined, and is not subject of governance in my opinion.

THALES token migration to $OVER

$OVER token will be a simple ERC20 token. The circulating supply, which will be fully minted from start, will be 69,420,000 $OVER tokens.

THALES token will exchangable to $OVER token 1 to 1. The exchange is only possible in one way. Once a THALES token is swapped to $OVER, that THALES token is burned. There will be no deadline on this echange and thus no urgency on when users decide to migrate their tokens.

$OVER token remains a governance token, and a utility token that will allow users better payouts when using Overtime products. Voting snapshots will be holder based and exclude the DAO treasury and it's associated wallets.

THALES liquidity pools on Overtime Markets will be replace with $OVER liquidity pools, thus $OVER bets will offer 2% better payouts, as previously established with THALES token.

There will be no single side staking for $OVER token. All accrued fees, save for 20% that would go to insurance fund per weekly snapshot, through USDC, ETH or any non $OVER pools will be used for buyback and burn of $OVER token. The exact mechanics of buyback and burn will be inherited from THALES buyback and burn contracts, with pDAO having the discretion to configure and change those contracts as needed.

The insurance fund will be used in case of reimbursements incurred due to Oracle errors or otherwise non organic losses by users or Overtime AMM LPs.

To establish DEX liquidity, the DAO will use its VeVELO and VeAERO NFT positions and protocol owned liquidity. The arrakis pool will be deprecated.

The focus remains on having no inflation!

The discrepancy between the current fully circulating supply of THALES (~94m), and the circulating supply of $OVER, will be resolved by DAO treasury burning around 25m THALES tokens.

Core contributor vesting will not be aspect to inflation. Those tokens can be considered circulating, the vesting itself is mainly an incentives alignment agreement between Treasury managers and CCs. Per original THALES tokenomics, all CC vesting was to be ended by now, but it was proactively prolonged by CCs themselves.

DAO voting

The protocol will remain governed by 7 member council voted in by community members. All $OVER holders will receive voting power on elections baded on the balance of $OVER tokens in their wallets.
Due to the focus on rebrand, I propose mitigating some of the elections overhead and having 6 months epochs going forward.

Rationale

TBD

Test Cases

N/A

Implementation

N/A

Copyright

Copyright and related rights waived via CC0.