AIP 101: Treasury Withdrawal for Liquidity Enhancement

Summary

This proposal aims to withdraw 4 million AST from the treasury to the operations wallet, with 50% of these tokens to be sold by December 2025 with a price floor of $0.06 per token. The proceeds will be strategically deployed to enhance liquidity and establish a new 1% fee pool (up from the current 0.3%), creating a sustainable revenue stream for the DAO. By executing this proposal, we seek to improve market depth, optimize treasury assets, and establish a more robust financial foundation for ongoing operations and development of the AirSwap ecosystem.

Specification

Treasury Operations:

• Withdraw 4,000,000 AST from the treasury to the operations wallet
• Sell 2,000,000 AST (50% of withdrawn amount) gradually before September 2025
• Utilize single liquidity provision or limit orders to minimize price impact

Liquidity Enhancement:

• Allocate approximately $250,000 USD equivalent to enhance liquidity pools
• Create a new liquidity pool with a 1% fee structure (increased from current 0.3%) with ETH/AST
• Implement the new fee structure within 30 days of proposal acceptance

Implementation Timeline:

• Initial treasury withdrawal: Within 7 days of proposal acceptance
• Token sales: Gradual execution between acceptance and September 2025
• Liquidity pool establishment: Within 30 days of initial withdrawal

Reporting:

• Monthly transparency reports on token sales progress
• Documentation of liquidity pool performance and fee revenue generated

Rationale

The AirSwap DAO treasury currently holds a significant amount of AST tokens that could be more effectively utilized to enhance the protocol's market position and sustainability. This proposal addresses several key needs:

• Market Liquidity: By allocating $250,000 to dedicated liquidity pools, we can reduce slippage and improve trading experience for users, potentially attracting more volume and more fees.
• Sustainable Revenue: The increase in fee structure from 0.3% to 1% creates a meaningful revenue stream for the DAO, as many DeFi protocols tokens operate at similar fee levels.
• Treasury Optimization: Converting a portion of treasury assets from AST to ETH provides financial stability and operational runway that isn't subject to token price volatility.
• Immediate Action Required: In the absence of an established AirSwap foundation, potential OTC deals and other strategic treasury management actions would require significant time to negotiate and implement. This proposal enables the DAO to take decisive action now rather than waiting for organizational structures that are not yet in place. The current market conditions present an opportunity that should be capitalized on promptly.

Copyright

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