Summary

This proposal would diversify a portion of the TCR governance tokens held in the Tracer DAO treasury into USDC via a direct TCR acquisition by Maven 11 and its strategic partners, listed in the section below.

This proposal attempts to strike a balance between:

1. Not expending too many TCR tokens at an early stage for the protocol; and

2. Introducing a variety of long-term strategic partners to the Tracer DAO with a variety of specialisations, to support the DAO in areas including:

   a. capital for further proposals;

   b. advice based on industry experience;

   c. liquidity to ensure stability of protocol;

   d. networking to increase flow of opportunities for Tracer DAO; and e. diversifying the Tracer DAO to help guard against the event of any (macro) market downturn.

We note that these considerations are inspired by comments made by various members of the Tracer community in recent months, including RMIT BIH (SincDavidson), Wulfmane, Beepidibop, JustASushiChef, MordantBlack, yodges, Mark11 and Lion’s Mane.

We remind all community members that the TCR token is a governance token only, which means it allows holders to participate in Tracer DAO via its governance mechanism and provides no ownership, financial or economic rights of any kind.

Strategic Partners

Strategic Partner	$USDC Commitment	Number of TCR Tokens	Ethereum Address
Funds
Framework Ventures	$1,000,000	22,222,222	0x0d298f3220eAdf02D10C9Feff537B50787725418
DACM	$750,000	16,666,667	0xf8ccf1f5381956f4152B5570627C49D42eABB60e
Maven 11	$300,000	6,666,667	0x8938892193FddAB15F113459E91e1c4Ab1f052A4
Apollo Capital	$300,000	6,666,667	0x2ce5f9f52C1eec9a1183f91139C59b485Ff39dAd
Distributed Global Ventures T2 LP	$225,000	5,000,000	0xb298F84eB4A1b5180a90006c8573422CD66321fc
Distributed Global Ventures II LP	$225,000	5,000,000	0xC572550343B4bC82734Cfb6bA28c86b350513F18
Paperclip Fund	$150,000	3,333,333	0x09a73Ca620c4D2e92009a68cB681741745191774
Supernova	$80,000	1,777,778	0xc1bbc31e3b4300f3dc0f865ee10c38fc0e0b8061
Market Makers
GSR	$500,000	11,111,111	0x2f529d5E02A531141516F2B62C1EF48AF8048913
Efficient Frontier	$100,000	2,222,222	0xcb4f5a5f5ebec3de8f697cf38b7fa0f1878110f4
DAOs
The LAO	$200,000	4,444,444	0x2D81713c58452c92C19b2917e1C770eEcF53Fe41
Baires DAO	$100,000	2,222,222	0xf6b6f07862a02c85628b3a9688beae07fea9c863
Angels
Maker Mafia (Nik, Charles, Gustav & Mariano)	$75,000	1,666,667	0xc304e5d59707DA4F821e136B965DDeF534FB47B1
Simon Cant (Reinventure)	$58,350	1,296,667	0x51164aBE5Fcd2249CEB75aC54afE0AFD8d36ad4e
Danny Gilligan (Reinventure)	$58,350	1,296,667	0x2Cf0DfCc4149f8CaA8F5D6614CCB339587f8F20f
Joyce Yang (GCR)	$50,000	1,111,111	0xb0353d0A6690B0De6C50F00A1dd4D3B227fF596b
Stani Kulechov (Aave)	$50,000	1,111,111	0xF5Fb27b912D987B5b6e02A1B1BE0C1F0740E2c6f
Ashwin Ramachandran (Dragonfly)	$50,000	1,111,111	0xd046135Ba00B0315eD4c3135206C87a7F4EB57D9
Philippe Perzi (Exec Dir. GS)	$30,000	666,667	0x6b2633830704d9fd18daC155E7620673d8F27f1b
0xMaki (SushiSwap)	$25,000	555,556	0xc3598d91844b061195136600ad243b077cc164e2
TokenInsight	$25,000	555,556	0xC2FaAf1233e36B879Cc411A38e23F7d41cc3D71A
Henrik Andreson(Apollo/mStable/dHedge)	$20,000	444,444	0x20C39b973ce1987865bc0D8373e45fc1a0f085C0
Kevin De Patoul & Juan David Mendieta (Keyrock)	$20,000	444,444	0xE50E6Ad4bFfD91151e4441B4ACd81C8098f355ae
Radek Ostrowski (dHedge)	$15,000	333,333	0xb3C4C88A5A8760f0C1E9B1C618B58A21cdB336eF
Emrin Nurovic (dHedge)	$15,000	333,333	0xd81f3d609d4317f6de1f3d86862eb10b51645e23
Darren Smorgon (Sandbar Investments)	$15,000	333,333	0x69B5F5e85CE1B82b383034a1c2629c143B8E29a9
Kevin O’Hara (Sentor Investments)	$15,000	333,333	0x3b1E215FE1138aA9034b5E6De39892e45ac05176
Sid Powell (Maple)	$10,000	222,222	0xf0cf9631ee58cc8f3eec5bd8a78797c1447bb476
Joe Flanagan (Maple)	$10,000	222,222	0xd16295DEA1115C9df62FC35017bB359fb1E6d639
James Simpson (mStable)	$10,000	222,222	0x3DF1b295d394B6c77415e9659Cc1a7DBCcA76Be7
Rohen Sood (Reinventure)	$8,300	184,444	0x673A7f6C72b26aE0521c0F44C321650890858EC5

Terms

Consideration, Deliverables and Variation and Termination

If this proposal succeeds, the strategic diversification will occur on the following terms:

1. Token Strategic Diversification

   1. Tracer DAO will transfer 100,000,000 TCR tokens (10% of TCR token total supply) to the strategic partners.

   2. In consideration, the strategic partners will collectively transfer 4,500,000 USDC to Tracer DAO.

2. Method of Transfer

   1. Once this proposal is executed on Snapshot, each strategic partner will have 14 days to transfer its agreed amount of USDC to the DAO Treasury (Transfer Period).

   2. If a strategic partner does not deposit its agreed amount of USDC to Tracer DAO’s treasury within the Transfer Period, any deposited USDC will be returned to that strategic partner, and it will not receive any TCR tokens in connection with this proposal.

   3. At the end of the Transfer Period, an on-chain proposal will be pushed to the DAO to transfer the strategic partners' TCR tokens to a vesting contract.

   4. Once the on-chain proposal is executed, TCR tokens will begin vesting to the strategic partners.

3. Vesting

   1. The tokens will vest linearly over a two year period, starting when this proposal is executed on-chain.

4. Variation and Termination

   1. This proposal cannot be varied or terminated by future proposals.

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.

All participants in the treasury diversification wish to declare the following conflicts of interest:

1. No conflicts of interest to declare.

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.

Copyright Waiver

Copyright and related rights are waived pursuant to CC0.

References

This proposal is inspired by the work of BadgerDAO, LIDO and PoolTogether in their treasury diversification efforts.