Summary

Discourse link: here

Currently, Tracer DAO is suffering from inefficiencies that stem from pushing through operational-related proposals. Under proposal #16, Tracer DAO established the Tracer Growth Fund (Growth Fund) to ameliorate these inefficiencies, following successful implementations from other DAOs such as Sushi, Yearn and Reef. To remain competitive as a DAO, it is necessary to expand both the remit of the Growth Fund and provide a top-up to its stable assets.

Expanding the remit of the Growth Fund, as outlined below, will expedite the payment of DAO service providers, auditors, and contractors while allowing the Growth Fund to more freely incentivise and give back to the Tracer community. Opportunities to raise the public profile of Tracer DAO arise quickly and are often time-sensitive. With the average proposal and voting period taking between 4-9 days, Tracer DAO risks missing out on these vital growth opportunities without appropriate delegation.

Furthermore, as Tracer DAO interacts and collaborates with more third parties, prompt payments will be necessary to establish a reputation as a reliable and professional DAO.

As established under proposal #16, a line was drawn between:

1. those decisions that fall within the remit of the Growth Fund (and ultimately with the Managers of the Growth Fund, being members of the multisig (the Managers)); and
2. those decisions that sit outside this remit and therefore, require a formal DAO Proposal and voting process.

If this proposal is successful, the Managers will have a wider remit to handle all operating expenses in addition to their current remit under proposal #16. Broadly, the managers will have sovereignty to direct the Growth Fund assets towards the following areas:

1. contractors/contributors;
2. additional Service Provider team payments (TCR) for greater incentive alignment;
3. advisors to the DAO;
4. audits;
5. community incentives;
6. liquidity mining rewards;
7. DAO sponsored price feeds;
8. insurance; and
9. airdrops (exclusively TCR).

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Consideration

The Managers will not receive any remuneration for the provision of these services.

500,000.00 DAI tokens (~12% of the total DAI holdings in the DAO treasury) will be transferred to a multisig controlled by the Managers immediately after approval to manage the cost of the Deliverables under this Proposal and Proposal #16.

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Deliverables

The Managers shall, from the Commencement Date, and for the duration of this Proposal, oversee the provision of the Deliverables to the DAO in accordance with the terms of this Proposal.

This proposal envisages that the remit of the Managers will be expanded to include decisions involving growth opportunities and operational expenditure related to the long-term development of Tracer DAO.

Each of the Deliverables is detailed below:

1. expand the remit of the Growth Fund Managers to allow for:
   1. engaging contractors and new team members of service providers, to perform certain services on behalf of the Tracer DAO (for example, developers and auditors appointed by the Managers from time to time);
   2. payments to team members of an existing Service Providers;
   3. payments for engaging advisors for Tracer DAO;
   4. smart-contract audits of Tracer DAO’s financial contracts;
   5. community incentives (such as contest rewards, DAO work remuneration, ambassador program costs, merchandise, etc.);
   6. liquidity mining rewards (which have traditionally been funded by proposals to distribute DAO held TCR);
   7. operational expenditure for DAO sponsored price feeds from service providers such as Chainlink;
   8. insurance payments to mitigate against smart contract failure risk; and
   9. airdrops to provide good incentives for positive behaviour within the DAO.

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Variation and Termination

The Managers acknowledge that, if passed, the DAO may terminate or vary this proposal in accordance with:

1. future Proposals and performance;
2. the Deliverables specified above;
3. a material breach of any term of the Agreement which breach is not capable of being remedied or (if such a breach is remediable) fails to remedy that breach within 10 days of receipt of notice from the DAO in writing to do so; and
4. any repeated breaches of the terms of the agreement in such a manner as to reasonably justify the opinion that its conduct is inconsistent with it having the intention or ability to give effect to the terms of this agreement.

Termination of the Proposal shall not affect any of the parties’ rights and remedies that have accrued as at the date of termination. Furthermore, any termination of this agreement shall not be effective unless the agreement either expires, all things required to be done by the Proposal are completed or it is terminated by a further proposal of the DAO.

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Conflicts of Interest

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

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

The following conflicts of interest are declared:

1. Growth Fund Managers are an existing Service Provider to the DAO.

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Interpretation

Unless expressly agreed otherwise in writing by an Authorised Representative of the DAO, all terms that are defined pursuant to the Participation Agreement will retain its meaning.

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

The following definitions shall apply in this Proposal:

Definitions

Commencement Date: the date this Proposal is passed on chain and is signed.

Tracer DAO: A decentralised autonomous organisation for Tracer, an open-sourced blockchain-based financial protocol.

TCR Token: A measure of voting power in the Tracer DAO that attaches to a specific Wallet Address, whereby the greater amount of TCR Tokens a person holds in that Wallet Address, the greater the person’s voting power.

Related party: Means, but is not limited to, a Manager’s affiliate, assignee, transferee or one of their representatives, principals, agents, directors, officers, employees, consultants, contractors, members, shareholders, or guarantors.

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Indemnity

Tracer DAO shall keep the Growth Fund and each of its Members (the Indemnified Persons) fully indemnified against all liabilities, costs, expenses, damages and losses (including but not limited to any direct, indirect or consequential losses, loss of profit, loss of reputation, product recall costs and all interest, fines, penalties and legal costs (calculated on a full indemnity basis) and all other professional costs and expenses) suffered or incurred by any of the Indemnified Persons as a result of or in connection with:

1. any claim against the Indemnified Persons for actual or alleged infringement of a third party’s intellectual property rights arising out of, or in connection with, the receipt, use or performance of the Deliverables, to the extent that the claim is attributable to the acts or omissions of the Indemnified Persons, their employees, agents or subcontractors; and
2. any claim made against the Indemnified Persons by a third party arising out of, or in connection with, the performance of the Deliverables, to the extent that such claim arises out of the breach, negligent performance or failure or delay in performance of the Proposal by the Indemnified Persons, their employees, agents or subcontractors.

Tracer DAO will not indemnify the Indemnified Persons against liabilities, costs, expenses, damages, and losses (including direct, indirect or consequential losses) for decisions they make that are grossly negligent in the exercising of their function as decision-makers for the Growth Fund.

This clause will survive termination of the Proposal.

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Copyright Waiver

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