D00019 - Utilize DAO Funds for Flexible Farming on SOPHON

Author(s): Joran / JL97 Category: Finance

Summary: This proposal aims to utilize unused DAO tokens in SOPHON's flexible farming pools to generate additional revenue for the DAO in the form of SOPHON tokens.

Motivation: The DAO currently holds a total of 2.33B OPN tokens, with a portion already reserved for ongoing proposals such as market makers and Nate’s community rewards. The remaining tokens (800 000 000) are currently unused. By allocating these unused tokens to SOPHON's flexible farming pools, the DAO can earn additional revenue and further contribute to ecosystem growth.

Rationale: The OPN team has identified the new SOPHON chain as a major opportunity for ecosystem growth and has indicated that OPN will be an important partner on this new network. Since last year SOPHON started with their farming poules: This way, everyone can get their hands on a portion of the Sophon tokens. OPN is one of the tokens that can be used for farming. The reason I'm writing the proposal now is because in the first phase, community members would receive significantly fewer tokens if the DAO were to participate in the farm. This is because the Farm first divided all points per farming pool, so spread over all OPN. At the moment, all farm points are spread over all total tokens: the tokens are now on a very large hump. The impact is therefore lower. Also, the farming period will (if not extended) start with the last month (March).

The farming initiative is not a random decision, but rather a strategic move aligned with the DAO's long-term interests. More details on the partnership can be found in the blog post: Open Ticketing & Sophon Partnership (https://blog.sophon.xyz/open-ticketing-sophon/). More details about the farm can be found in the blog: https://docs.sophon.xyz/discover/farming-intro (Boost will be not be used/is not possible in this phase).

Specifications: Farming: The process in which users deposit assets into specific pools to earn rewards in the form of Sophon Points (SP), which are later converted into $SOPH tokens. Flexible Farming: Unlike fixed staking, flexible pools allow participants to withdraw their deposited assets at any time without penalties, due this DAO can withdraw funds if needed for other DAO proposals.& Fund Allocation: Allocate the unused DAO tokens (800 000 000) to SOPHON’s flexible farming pools. Total DAO tokens: 2,330,000,000 OPN Current OPN Price: $0.00071684 OPN Reserved MM: $1,000,000 Reserved DAO proposal Nate: $10,000 Unused DAO tokens: 920 408 478 Buffer for if price decreases: 120 000 000. Proposal is to use 800 000 000 OPN tokens for the farm.

Implementation: Team needs to migrate the GET Protocol tokens, bridge the OPN tokens to the SOPHON network and deposit the assets in SOPHON's farming poule.

Monitoring: Track the generated SP and evaluate performance throughout the farming period.

Withdrawal & Distribution: Once the farming cycle ends, withdraw the DAO funds and add the earned $SOPH tokens to the DAO treasury. Any further decisions on how to use these $SOPH tokens will require a separate DAO proposal.

Timeline: Immediately after approval: Allocation of DAO tokens to SOPHON’s flexible farming pools. End of farming period: Withdrawal of staked funds and evaluation of earned rewards.

Budget: Transaction fees: Minimal costs for migrating, bridging, depositing and withdrawing tokens. No additional resources required: No extra manpower or infrastructure costs are associated with this implementation.

Vote Options: Yes - Approve the proposal to allocate unused DAO funds to flexible farming in SOPHON. No - Reject the proposal.