Hashes DAO Permutation 10: Sell Art & Wind Down

This proposal is a plan to:

1. Sell the DAO's NFT collection, prioritizing value realization from its most significant assets.
2. Distribute proceeds to DAO NFT holders via a fair and transparent redemption process.
3. Fully close the DAO within six months of the proposal passing.

Why Wind Down Now?

Multisig Atrophy: The DAO's NFTs are held in a 5-of-9 multisig. While it’s currently possible to reach 5 signatures, most signers are inactive, no longer have ownership interest in the Hashes DAO, and the group is no longer maintained. If 5 of 9 signing ability is lost, the DAO could lose access to the collection permanently. There is real risk of treasury loss if action is not taken now.

Low Participation: Only 5 wallets participated in the most recent Snapshot vote. No new Permutations have been proposed in over a year.

DEXLabs Agrees: DEXLabs, which holds 100 DAO NFTs, supports a wind down if that is the preference of the community.

Renewed Market Conditions: We're currently in a bull market for high-value NFTs, and have received inbound requests from serious buyers. This is a timely opportunity to realize value from the DAO’s holdings.

Proposed Timeline

Wind Down Execution Plan This Permutation will focus on three core responsibilities:

1. Sell the NFT Collection: Prioritize the sale of high-value and liquid assets, and develop strategies to handle the longer tail of works.

2. Re-engage DAO NFT Holders: Proactively notify holders about the wind down and sales process, and ensure broad awareness across channels.

3. Facilitate ETH Distribution and DAO Closure: Design and deploy a smart contract that enables fair, pro-rata redemption of ETH and fully winds down the DAO.

Sell the NFT Collection The Hashes DAO collection contains a mix of: Grail NFTs: These are the most valuable and sought-after assets, and will be prioritized in the sales process: Machine Hallucinations by Refik Anadol and Blossoming Cadaver by Botto.

Liquid Assets: These works have consistent demand and can be sold with moderate support: Chromie Squiggles, other Artblocks pieces, Justin Aversano, Mathcastles Terraforms, etc.

Long-Tail Artworks: These require more targeted outreach, bundling, or creative sales approaches. The full collection can be found here: Hashes DAO Multisig Opensea Wallet and Permutation 1 Hashes DAO wallet.

To avoid price anchoring, we will not publish valuation estimates publicly.

All sales will pay royalties to the artists at standard rates.

Sales Process & Broker Engagement Quimp and SydneyJason will lead the sales process, working to maximize value while maintaining transparency with the community. The strategy may involve both bundle sales and one-off transactions, depending on buyer interest.

Potential buyers and partners have already been identified, with some ready to make offers. All serious offers will be shared with the DAO community via Discord for visibility and feedback. See Google Doc for more sales info in the appendix.

Unsold NFTs While it is in our best interest to sell the full collection, ultimately we may not find buyers for all artworks. In such cases, unsold NFTs from the long-tail group may be returned to their creators or donated on a case-by-case basis (e.g. to a collector DAO, a buyer of other works), but they will not be retained by or transferred to Quimp or SydneyJason (although they would be free to purchase them, with the same transparency mentioned above).

Re-engage DAO NFT Holders A multi-channel outreach campaign will be launched to activate the remaining Hashes community and ensure quorum for the Snapshot vote. Our goal is to achieve at least 20 DAO NFT votes with a 66%+ approval rate. Maintain consistent presence throughout the process

X/Twitter Relaunch account with 2–3 posts per week Highlight grail NFTs through detailed threads Share updates, milestones, and voting reminders

Holder Outreach Analyze wallet activity to identify reachable holders Engage via Discord DMs, Farcaster, X (Twitter), and other platforms Leverage existing art/collector networks

Facilitate ETH Distribution and DAO Closure To ensure a fair and efficient wind down, we will deploy a smart contract that enables DAO NFT holders to redeem their tokens for a pro-rata share of the treasury. This contract will handle the entire distribution process across two phases, with provisions to accommodate for inactive or lost wallets.

Contract Development We will engage a trusted smart contract developer to build and test the redemption contract. If DexLabs cannot provide the developer, we will source one from known and reputable contacts. Development costs will be covered from proceeds of the NFT sales.

Redemption Process The contract will follow a two-phase structure: Phase 1: Pro Rata Redemption (Month 4) All eligible DAO NFTs (excluding those burned or previously redeemed) can be exchanged for a pro-rata share of ETH. Redeemed funds will be distributed immediately to the caller wallet.

Phase 2: Last Chance Redemption (Months 5-6) A second window remains open for unredeemed DAO NFTs. Any DAO NFTs still unclaimed after this period will be excluded from the final distribution.

Final Treasury Liquidation (End of Month 6) Remaining ETH will be divided among all redeemed DAO NFTs from Phase 1 and Phase 2. Funds will be automatically disbursed, and the treasury fully liquidated.

Example Flow: If 500 ETH is available post-sale Each of the 580 eligible DAO NFTs is initially worth ~0.862 ETH. If 200 NFTs redeem in Phase 1, those holders receive 172.4 ETH total. If 50 more NFTs redeem in Phase 2, those receive an additional 43.1 ETH. Final liquidation (284.5 ETH) is split among 250 redeemed NFTs → each gets a final 1.138 ETH.

This structure ensures that all active holders are rewarded, and the treasury is fully emptied, even if some wallets are lost or inactive.

Governance & Voting Process To initiate the sales and wind down process, we are proposing a Snapshot vote. No funds will be moved from the governance contract itself—execution will be handled via an existing multisig wallet with remaining funds from a previous Permutation. Voting Parameters Quorum: 20 DAO NFTs (out of ~480 active, excluding DexLabs) Approval Threshold: 66% or greater in favor Note: The DAO’s original quorum was 40 out of 885 DAO NFTs (~4.5%). The updated target reflects current activity and supply. Vote Outcome Scenarios

1. Quorum met + super-majority in favor → Proceed with the sales process and full wind down
2. Quorum met but no super-majority → Take no further action for now
3. Quorum not met after 2 weeks of outreach → Proceed with sale and wind-down anyway

After two weeks of Discord engagement, targeted outreach, and Twitter promotion, if quorum is still not reached, this will be considered a signal that the DAO community is no longer viable. In this case, we recommend proceeding with the wind down to protect the remaining assets from community and multisig attrition.

Budget & Responsibilities We propose a working budget of 7 ETH, drawn from remaining funds in a previous multisig (Perm 8 Strategic Advisory Board).

Art Sales & Buyer Engagement – 2.5 ETH Quimp will lead outreach to collectors, brokers, and auction houses. Managing inbound interest Creating a competitive bidding environment Evaluating offers (bundled or individual sales) Sharing proposals with the community within 45 days of vote approval

Communications & Governance – 2.5 ETH SydneyJason will coordinate the communications campaign and community engagement. Re-launching Twitter and posting 2–3x/week Promoting the Snapshot vote and key grail NFTs Re-engaging DAO holders across platforms Running the governance and voting process

Wind Down Contract Management – 1 ETH SydneyJason will scope, hire, and oversee the smart contract developer. Drafting and reviewing contract specs Managing testing and deployment Communicating progress and redemption timelines Note that the budget for contract development itself will come from the sales of the NFT collection

Contingency / Incidentals – up to 1 ETH Reserved for unforeseen needs, including contract support, multi-sig signing incentives, reassignment of long-tail assets, or admin overhead.

Incentive Structure To align incentives and reward outcomes, we propose a 3% success fee on net sales proceeds, to be split equally between Quimp and SydneyJason (1.5% each). This 3% success fee will only apply if the net sales value of the NFT collection exceeds 250 ETH. This bonus is contingent on successfully liquidating the NFT collection, completing the wind down, and is intended to drive the highest possible return for all DAO NFT holders.

Any ETH remaining from this operating budget or recovered from unused Permutation wallets will be returned to the treasury for distribution.

Conclusion The Hashes DAO was born as a creative on-chain experiment—and like all experiments, it has a natural end point. With declining engagement, a shrinking active community, and real risks to the DAO's ability to manage its assets, we believe now is the right time to conclude the project responsibly and return value to holders. This proposal offers a structured, transparent, and time-bound path to do exactly that: sell the art, distribute the proceeds, and fully wind down the DAO within six months.

We’re committed to executing this process with integrity, care, and full visibility to the community. With your support, we can bring this chapter to a close on a high note. Let’s finish what we started—together.

• SydneyJason & Quimp, with support from DEXLabs