This proposal is inspired by a collection of threads including the RFC from DCFGod. It combines elements from all threads and allows the development team to prepare the contracts for the rage quit within a specific timeframe.
The past few weeks have been turbulent for Wonderland and its community. With a need to find new treasury management and an uncertain future, the wMEMO price took a toll. While a vote was casted to remove its current treasury manager, it left the DAO without buybacks or any active treasury management. As a result, the price of wMEMO has dropped far under the treasury backing. The process of building a new management structure and recruiting a new treasury manager takes time. The recent unwinding vote has shown that there is a larger percentage of wMEMO holders which would like to exit the DAO. To avoid these users voting towards achieving only short term goals which benefit them exiting, a rage quit proposal is launched which lets people exit the DAO through a predetermined pathway. It allows the DAO to continue with individuals which are aligned long term towards the success of the project.
Link to previous [DAO Discussion] and [RFC] thread:
Lay out a plan and execute the Rage Quit option to allow wMEMO holders exit the DAO at a value that is close to treasury backing.
Provide a High Level Overview:
The Rage Quit process consists of two phases:
- I. Phase 1: Snapshot Governance
- II. Phase 2: Deployment of Rage Quit Contract
The first phase consists of two snapshot governance votes.
The goal of the first vote is to decide if the community wants to implement a Rage Quit contract which allows wMEMO holders to enter a whitelist and exit the DAO at a predetermined valuation. This WIP will allow the DAO to decide if a Rage Quit option should be implemented for individuals to be able to exit the DAO.
The snapshot vote will be posted as WIP #5.1 with the option to implement rage quit or not. The snapshot vote will last 7 days. After the vote is over, and if the results indicate that the DAO wants to implement the Rage Quit option, liquidity will be pulled, and all trading will be halted until the rage quit option is implemented.
The WIP snapshot has to include the backing price of wMEMO which token holders can expect to receive when using Rage Quit. With not more than 5-10% variance to this predetermined price.
A second snapshot vote for the Rage Quit whitelist will be held. The goal of the second vote is to create a whitelist and allow the treasury to prepare the funds and contracts according to the amount of wMEMO entering the whitelist. This extra data will increase the efficiency of the rage quit contract and lower slippage.
The Rage Quit Whitelist snapshot vote will last 4 days. wMEMO holders who wish to exit with their wMEMO tokens and receive their part of the treasury will need to vote YES on this snapshot.
By voting YES, your address will be added to the whitelist.
Once the whitelist snapshot has ended, a 48 hour window will allow the development team and multisig to assess the results and prepare the treasury for the Rage Quit.
At this stage the development team has already announced the backing price calculation of wMEMO and shared it in the first snapshot vote. This value together with the whitelist data will be assessed and used to create the Rage Quit Contract. The contract will allow each whitelisted user to exchange their wMEMO with the predetermined backing price ±5-10% slippage.
The Rage Quit contract will be topped up with the amount needed for the entire whitelist to exit and will remain open for 72 hours.
After 72 hours, the Rage Quit contract will be halted and trading of wMEMO will start again. We are giving the development team a window of 24 hours to adjust the liquidity and resume trading of wMEMO.
Provide Low Level Details:
Each individual component of the Rage Quit Proposal will be listed in this section of the WIP.
This snapshot vote displays the backing of wMEMO and allows the DAO to vote if token holders should be allowed to leave the ecosystem through a Rage Quit Mechanism.
Snapshot Vote Duration:
Changes to Protocol:
If the Snapshot passes, the DAO will move into a transition phase. All trading of wMEMO will be halted until the Rage Quit is completed.
Should a Rage Quit option be implemented which allow wMEMO holders to exit the protocol at a predetermined backing price?
Link to Original WIP:
[WIP #5] – Offer a Rage Quit Option to wMEMO holders)
- Yes, Offer a Rage Quit Option
- No, do not implement Rage Quit
This Snapshot will start as soon as Snapshot 1. WIP #5.1 has finished and the community voted for implementing Rage Quit.
wMEMO holders who wish to exit with their wMEMO tokens and receive their part of the treasury will need to vote YES on this snapshot.
Snapshot Vote Duration:
Changes to Protocol:
wMEMO trading has been halted. The development team is observing the whitelist vote and actively building the contracts for the Rage Quit.
The community has voted to implement the Rage Quit Option. You can read the details here: [WIP #5] – Offer a Rage Quit Option to wMEMO holders.
If you would like to participate in the RageQuit you need to enter the whitelist by voting YES on this snapshot page.
- YES, add me to the whitelist
- NO, I do not want to participate in the Rage Quit
The development team is summarizing the treasury and will present a wMEMO backing price with a 5-10% maximum variance.
The details on the treasury and how much 1 wMEMO is backed by will be released and presented on the website prior to WIP #5 Snapshot.
The treasury consists of liquid and illiquid assets, for users to receive maximum benefit, the illiquid assets will not be added to the backing price since it would create a false/overinflated value for wMEMO.
The BSGG token is considered an illiquid asset and is therefore excluded from the backing price calculation.
Keep in mind that some of the treasury assets are volatile and the backing price can move upwards as well as downwards. Therefore, a variance of 5-10% from the backing price is accepted.
After the whitelist vote has been completed, the development team will assess the data and announce the required assets necessary for the whitelisted wMEMO holders to exit. The multisig will get the treasury ready and will start the rage quit process within 48 hours from the ending of the whitelist snapshot vote.
The UI of the rage quit contract will show each whitelisted wMEMO address the capital that can be claimed for their wMEMO, respecting the 5%-10% variance from the original backing price. Each participant will be able to redeem their wMEMO against the calculated backing price in MIM tokens.
Start of Rage Quit:
Within 48 hours after the whitelist governance snapshot has been concluded.
Rage Quit Window:
The rage quit window will stay open for 72 hours to allow sufficient time for everyone that is whitelisted to claim their share of the treasury.
End of Rage Quit:
After 72 hours of the Rage Quit Window opening, the contract will close and a 24 hour transition period will start to allow the multi sig and development team to restart trading and add all liquidity.