Enabling Fast-Track OTC Purchases of SAIL

1.) What's the big idea?

Empower DAO operators to facilitate over-the-counter (OTC) purchases of SAIL directly from the DAO treasury. This initiative aims to support rapid execution of strategic transactions that benefit the project by leveraging the speed required by institutional buyers or large stakeholders, while also potentially increasing the treasury's capability to make further open market purchases of SAIL.

2.) What is the problem you are trying to solve?

Currently large SAIL purchases are subject to high rates of slippage, which disincentivizes buyers from entering the marketplace and thus reduces token liquidity. Token liquidity is a key metric for potential retail buyers who use crypto data aggregators like Coingecko, etc. to decide which tokens to buy and hodl. Having the DAO facilitate OTC transactions is more capital efficient - it reduces slippage - and strategically valuable - it deepens liquidity for the token. Current market conditions for SAIL are leading to lost opportunities for strategic buyers that could enhance the project's visibility and financial stability.

3.) What evidence do you have that indicates this is a problem?

Existing high slippage and low liquidity coupled with buyer requests for OTC transactions.

4.) What is the desired outcome if the problem is solved?

Enabling fast-track OTC transactions will allow the DAO to capitalize on opportunities swiftly, ensuring that potential large-scale investors can be accommodated within the necessary timeframe, thereby supporting the overall liquidity and market presence of SAIL.

5.) Who is this for?

SAIL hodlers and AdmiralDAO members: Benefit from strategic OTC sales that enhance the treasury's capabilities and support further project developments. DAO Operators: Empowered with the ability to approve and facilitate OTC deals responsibly and swiftly. Potential Buyer*: Large-scale investors or institutional buyers looking for significant SAIL purchases.

6.) How might this work?

OTC Transaction Process: DAO operators are granted the authority to approve OTC sales of SAIL directly from the treasury. Each deal requires a supermajority approval (four out of five operators). Communication Protocol: All OTC deals are to be communicated to the DAO within 24 hours of deal completion, ensuring transparency and accountability.

7.) How might we prototype/test concept desirability and feasibility?

This proposal does not require a prototype phase; however, a trial period with non-binding expressions of interest could be conducted to gauge potential buyer response and refine operational protocols.

8.) Suggested Implementation Plan

Immediate Actions: Update the DAO's operational guidelines to include fast-track OTC process protocols. Timeline: Implement procedural changes immediately following approval. Milestones: Approval of the proposal, amendment of operational guidelines, first OTC transaction. Costs: Primarily administrative and oversight costs, minimal compared to the potential increase in treasury assets.

9.) Why might this idea fail?

Lack of Operator Consensus: Failure to achieve the required supermajority on transactions could delay or hinder potential deals. Market Risks: Potential fluctuations in SAIL’s market price could affect perceptions of the OTC deal's fairness or timeliness.

10.) How will we measure success?

Funds secured through OTC transactions: Successful completion of multiple OTC transactions at market-significant rates. Feedback from Buyers and Community: Positive feedback from both buyers for the streamlined process and from the community for the transparency and outcomes of the deals.