Alternate proposal to Permutation 9

Voting ended almost 2 years agoSucceeded

There is a clear desire among some Hashes holders to return unspent ETH in the DAO to Hashes holders, but Permutation 9 is not the right approach to this as it combines two separate voting matters into one. There are two separate components to consider, which should be voted on separately.

A. Returning a portion of the treasury to HashesDAO holders (actionable today)

B. Deciding if and how to best liquidate or distribute the collection held by the DAO (for the DAO post redemption to evaluate separately)

Voting on these two matters can and should be separate and distinct.

Second, Proposal 9 claims to be "fair and transparent" yet has a 9% fee attached to it, with an extra 2% fee on art sales and an extra 4.5% optional fee for expenses to be approved by a small group of insiders, and delegates ALL GOVERNANCE of the DAO to this small group.

This proposal is an alternative that has significantly lower fees and reduces the risk of yet another multisig being formed. The DAO should not be a tool for personal enrichment. Moving funds to a redemption contract is a simple process, and charging 9% for this process is not aligned with the intention of the DAO to serve all of its constituent members, who have an equal economic interest and equal rights to participate in the governance of the assets of the DAO.

This proposal puts forth that we return a large portion (potentially all) of the unused treasury to Hashes holders in the following manner.

Take the liquid ETH in the DAO and create a redemption contract from which valid DAO Hashes can participate.

The remaining ETH is:

Main Hash DAO Contract: 529.179 ETH
PERM 8 Hot Wallet: 2.327 ETH
PERM 8 Multisig: 7.097 ETH
Hash Developer Multisig: 4.376 In total that's 542.979 ETH, worth $1.9M at current prices.

Valid Hashes are those within the range of 0-999, excluding the 100 DEX Labs Hashes, the 15 deactivated Hashes, and the 67 Perm 8 Hashes that were bought back, totalling to 182 non-participating Hashes.

The remaining valid Hashes may redeem anywhere between 0.66 ETH* and 1 ETH**.

*If all valid Hashes participate (probably unlikely), redemption would net 542.979 / 818 = ~0.66 ETH. **If fewer than fewer than 543 Hashes participate, redemption would be able to sufficiently distribute at par, i.e., 1 ETH per claim.

Additional details

The liquid ETH (~542.979 ETH) will be moved to a redemption contract. Community member Alex Towle has offered to help lead the redemption contract effort at cost (~5 ETH) for development costs. DEX Labs will review and audit the code free of cost, but if external reviews are desired, that should be factored in as an additional cost.

The redemption contract will be open for approximately 1 month, with redemption taking place at block number t. Valid Hash participants may call an on-chain function that will send their Hash(es) to the smart contract. At any point between then and t, members may unredeem and remove their Hash(es) back to their wallet.

At time t, any members who have signaled their desire to redeem by sending their Hash(es) and remaining in at time t can call another function to receive their ETH. The ETH redemption value per Hash will be max(549.979 / TotalHashesRedeemed, 1). Claimants will receive this value for each Hash they are redeeming.

After the Hash claim process has been completed, any remaining ETH in the treasury and the Hashes can be sent back to HashesDAO for its continuation amongst the remaining members who have not participated in the redemption program.

Additional notes:

NFT collection

The NFT collection is not in scope for this redemption process. There is interest in a large group of individuals for finding exit liquidity, and this proposal grants them that liquidity up to potentially 1 ETH. There is also interest amongst a large group of individuals to continue the DAO, and those individuals will not participate in the redemption, and may in fact have little to no treasury left to work with. However, the remaining DAO post redemption will own the redeemed Hashes (could burn them or distribute later), any remaining treasury, and the NFT art collected. It may proceed as it so chooses.

No New Multisig

Proposal 10 is firmly against the transfer of any assets to a new multisig. The ETH in various multisigs can be moved directly to the redemption contract address in the manner outlined above, thus is a trustless and more secure process.

No Transfer of Governance

This proposal is firmly against the delegation of all governance to a new group of five stakeholders who ALSO control all of the assets of the DAO. The DAO should decide all governance matters through the voting process, not delegate authority to a small group of insiders.