Reducing LP size by 25% for multiple reasons

GM, YellowCatDAO community!

This is our first official proposal, and it addresses the need to optimize our liquidity pool (LP) strategy based on our current metrics and market position.

Proposal Overview Our current LP ratio is relatively high, which limits price impact and reduces market efficiency. By adjusting our LP, we can unlock more flexibility for price movements and better allocate resources.

Current Metrics: Liquidity: $1.6M Fully Diluted Valuation (FDV): $13.0M Market Cap: $13.0M Pooled $KET: 63,160,991 (~$825K) Pooled WAVAX: 21,290 (~$825K)

Proposed Changes The dao proposes reducing LP by 25%, which will:

Free up ~15.79M $KET ($206K) and ~5,322 WAVAX ($206K). Bring total pooled LP to ~47.37M $KET and ~15,967 WAVAX (~$1.2M liquidity remaining).

Current LP/Mcap ratios compared with COQ KET LP Ratio = 8.12 COQ LP Ratio = 23.27 Reducing would give us 10.83. (which is still low)

Plan of Action: LP Reduction: Reduce LP by 25%, yielding: ~15.79M $KET ~5,322 WAVAX

Compensation for Missed Presale Allocations: Two core community members, Yak Man and CryptoDale, missed presale confirmations. Allocate a portion of the freed $KET to them, proportional to their presale amounts.

Market-Making Activities: Withdraw LP rewards and use them for active market-making to enhance price impact and liquidity dynamics.

Sponsoring Wrathtank's Minecraft thing in $KET (small amount)

Why This Matters: Improved Price Impact: Lowering LP increases price sensitivity, making trades more impactful and dynamic. Efficient Resource Allocation: Freed resources will be redirected to support market-making efforts.