Summary

TCR was recently approved to have its own Toke reactor on the Tokemak protocol through the first C.o.R.E. event. This enabled TCR holders to stake their TCR to provide liquidity for efficient market making for the token in return for rewards (%APR in TOKE). In other DAO protocols, local governance token holders are incentivised to stake their tokens within the local protocol to receive rewards (%APR in governance token) purely for staking to vote. This function rewards governance token holders in return for little utility to the DAO (liquidity locked + paying for people to vote). This proposal, if passed, will incentivise TCR token holders to vote in addition to providing effective utility through Tokemak for market making.

Receipt token for TCR staked in Tokemak is tTCR (token address: https://etherscan.io/token/0x15a629f0665a3eb97d7ae9a7ce7abf73aeb79415).1 tTCR token corresponds to 1 staked TCR token.

Currently Tracer DAO governance (executed through snapshot.org/#/tracer.eth) is only accepting votes from staked TCR token holders, but not tTCR. This proposal is calling for accepting tTCR for casting votes with 1 tTCR token being equivalent to 1 TCR token in voting weight.

In the future this could extend to having different derivatives of TCR tokens on other platforms being used for TCR governance.

Additionally, to allow for more effective governance and to mitigate voter apathy, this proposal if passed will allow for TCR holders to propose/vote on Snapshot proposals without needing to stake their TCR tokens. This would effectively have Snapshot take a 'snapshot' of the balance of TCR tokens inside of a TCR token holder's wallet at the time that a proposal goes live - only the TCR tokens that are in the wallet at the time will be able to be used for voting. For the same purpose, this proposal will also allow for TCR token holders on Arbitrum to vote/propose on Tracer DAO governance.

Rationale

If passed, this change would enable TCR holders who are interested in participating in Tracer DAO governance to stake their TCR tokens to receive TOKE rewards, which will be useful in voting to direct liquidity towards TCR when Tokemak starts deploying liquidity (estimated to happen mid-late December).

At the moment of writing, there are approximately 491 holders of 59,030,731 tTCR tokens (equating to more than 40% of circulating TCR supply locked in Tokemak). These wallets are TCR holders that are essentially excluded from participating in Tracer DAO governance.

Engaging tTCR, Arbitrum TCR and 'unstaked' TCR holders in Tracer DAO governance is important for Tracer DAO, since governance is the primary use case of the TCR token.

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Deliverables

If this proposal is successfully passed, the following deliverables will be provided:

1. tTCR tokens will be able to be used to propose and vote on proposals in Tracer DAO's governance process on Snapshot. This is in addition to the staked TCR tokens in the Tracer DAO contract (current solution).
2. 'Unstaked TCR' tokens will be able to be used for creating new proposals and voting on the Tracer DAO Snapshot interface.
3. 'Arbitrum TCR' tokens will be able to be used for creating new proposals and voting on the Tracer DAO Snapshot interface.

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Variation and Termination

1. If this proposal is successful, it can be varied or terminated by future proposals.

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Conflicts of Interest

In the context of the Tracer project, conflicts of interest include:

1. Existing Service Providers who are Related Parties; and
2. Existing (vested and unvested) holdings of TCR tokens.

The following conflicts of interest are declared:

1. No conflicts of interest to declare.

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Interpretation

Unless otherwise defined in this offer, all terms beginning with a capital letter which are defined in the Participation Agreement have the same meaning unless the context otherwise requires.

If this offer is accepted as a proposal under the Participation Agreement, others may more formally document aspects of this proposal.

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Copyright Waiver

Copyright and related rights to this Proposal are waived pursuant to CC0.