Umami DAO Proposal #1: Instatement of Core Contributors and Tokenomics Solidification

This snapshot its to implement the proposal posted by afirebrand via the DAO's commonwealth discussion (linked below)

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Proposal by afirebrand

To summarize, based on my understanding of recent events, the former Umami Labs CEO Alex O'Donnell (DeFiAlpha) attempted to supersede the Umami DAO treasury by transferring it to under his sole control. The Umami team refused to allow the treasury to be rugged and resigned en masse from Umami Labs. As such, at this time, the Umami DAO is faced with an existential crisis. It must either evolve to survive or it must dissolve.

The current treasury value, irrespective of POL, of the Umami DAO treasury is $4.134 million. A link to the treasury Zapper account is here: https://zapper.xyz/fr/daos/umami-finance-dao

Locked tokens:

• 37828 held in vesting contracts
• 170,015 held by the treasury
• 102,513 permanently locked in an old Ohm contract effectively removing these from max supply

Only the tokens included in the vesting contracts and circulation should be considered for RFV. As such, as of the time this article is written on February 9th, 2023, Umami DAO RFV = 4.134m / 727471 = $5.68 UMAMI.

The team has been working very hard on a Delta minimized product for GLP which is composed of 5 separate vaults that separate out and individually hedge the GLP volatile assets. This product is already live on Testnet and has been working as expected with high yield. This product stands to bring a significant amount of revenue and attention to the Umami DAO which is likely to result in token appreciation and, ultimately increased value of the RFV.

Given the current DAO predicament, I would like to propose the following:

• The community vote YES to hiring the former Umami Labs team as (now) Umami DAO contractors. All salaries and vesting contracts will remain the same. To be clear, the hires will include ALL former labs team members except Lex O'Donnell. The former Umami CLO, Alex G, will stay on as an unpaid advisor to the team, and will be available for contract work on an as needed basis.

• In exchange for being hired, the team will continue with their previous mandates. As before, the rights to the code will remain with the DAO, and revenue from the Umami vaults will be trustlessly distributed; shared between marinators as staking revenue and the DAO owned treasury at the previously agreed upon rates (50/50 split)

• Treasury revenue distribution will be reinstated to stakers at the previous rate of 50% revenue

• The Umami Labs agreement with the Umami DAO will be dissolved in full.

I would like to encourage the community to do a reassessment of the DAO revenues and long term value proposition at 6 months time after vault launch. If the repercussions of recent events result in an irreparable loss of reputation that prevents vault growth and product line revenue, the DAO should consider dissolution to allow UMAMI investors to recoup costs.

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To answer additional questions, we have increased transparency in the proposal:

Proposed Treasury Opex

• Current team comp is at $132,600, a decrease of roughly 35% from previous team comp. A total fixed cap of $160,000 for the team comp budget to allow for ~20% buffer to adjust and fill required roles as needed.
• 50k project-specific expenses (v2 vaults) in case any unforseeable expenses arise like further auditing costs.
• Rescinding contracts of team no longer contributing to the DAO and reallocating the umami to current and future contributors.

We have yet to publish the treasury report for the month of January due to recent events but treasury yield for the month was $92,000.

Voting Options

1. Accept the proposal. This allows the DAO to move forward in building the vaults.
2. Reject the proposal. This allows the DAO to put forward a new proposal such as modified terms to hire the team or dissolution of the treasury and project.