Proposal for a DAO Exit Event

Introduction:

Recognizing the diverse perspectives within our DAO, we believe it's essential to provide a structured and transparent process for those contemplating an exit. This proposal introduces a potential DAO exit event, offering four options for each tokenholder.

Exit Options:

Exit Proportionally: Description: Stakeholders choosing this option will exit the DAO based on their proportional stake of liquid and illiquid assets. This ensures a fair distribution based on individual holdings and does not require selling to fulfill.

Exit Fully in Liquid: Description: Stakeholders can opt to exit fully in liquid tokens. Note: There will be a penalty imposed if excess liquid is required for this option. This is to ensure the stability of the DAO's liquid assets and to discourage mass liquidation.

Exit Fully in Assets: Description: Stakeholders can choose to exit by taking assets equivalent to their stake. Note: A bonus will be provided for those taking excess assets. This incentive is designed to balance the DAO's asset to liquid ratio and reward those aiding in this balance.

Do Not Participate in Exit: Description: Stakeholders who wish to continue in an asset-backed gaming DAO can choose not to participate in the exit event. Their tokens and involvement will remain unaffected.

Rules:

A vote for options 1-3 will be viewed as a definitive intent to proceed with exiting.

Stakeholders will be expected to surrender their tokens as part of the exit process to secure their place in the exit.

Once the vote concludes, stakeholders will be committed to their chosen exit strategy. Tokens not committed to a vote will be automatically counted as voting for non-participation in the exit.

While we cannot force stakeholders to surrender tokens if they disagree with the final terms, non-compliance will result in removal from this exit process.

Next Steps after Proposal:

The Custodian will meet with exiters (those who voted for options 1-3) to finalize asset preferences and draft a final proposal.

The DAO will be tasked with providing a new Hive account (referred to as the Custodian) to receive the remaining assets.

Exiters will hand over their tokens to the Exit Leader, ensuring negotiations proceed with mutual trust.

Exit Leader (knightav), representing the exiters, will discuss any final asset-related considerations with the incoming Custodian, who represents the DAO.

Once a mutual agreement is reached between the Exit Leader and the incoming Custodian, the final exit proposal will be presented for voting. If approved, the exit will be processed, and the new Custodian will assume control of the DAO's assets.

Rationale:

Flexibility: By offering multiple exit strategies, we cater to the diverse needs and preferences of our stakeholders while keeping the responsibility for exit sales on those exiting the DAO.

Stability: The penalties and bonuses associated with the liquid and asset exit options are designed to facilitate the flexibility options mentioned above. This should make it easier for those desiring liquid assets to exit quickly without flooding the market with assets to sell.