FIP#58: FloorkDAO

Summary

This proposal aims to offer a fair path for Floor DAO to move forward into V2 and beyond while allowing token holders with different interests to exit into a newly formed DAO - FloorkDAO. With proportional share of the treasury migrating to Floork, the forked DAO may vote to do anything with the assets such as issuing a vanilla Rage Quit. This results in maximal conservation of momentum for the original and forked DAO.

Motivation

Floor has always been a token backed by the Treasury but over the past months has consistently traded below Treasury Value while the team remains full steam ahead on implementing V2.

As it stands right now, FloorDAO is going through a governance struggle that will likely hamper V2’s ability to attract new community members and succeed in the NFTfi ecosystem. This governance block has created a hostile mood in Discord that detracts from the DAO’s mission and hampers collaboration between the team and the community. There have been multiple instances where the team’s vision for V2 and the DAO have been at odds with the community’s and there is consistently a disconnect between holders that want to see MC==TV reached.

In 15 out of 16 gauge votes (Sweeps), the community has overwhelmingly voted to buy back the DAO’s token instead of sweeping more of an NFT collection. A strong signal that bringing MC=TV is a top priority for the community.

However, both sides of the DAO deserve to exist and have their dreams met. There is simply no reason to renege on the founding principles that FLOOR is backed nor is there a reason why V2 development must stop. This is a choose your own adventure moment where those that would like to focus on the issue of TV==MC may do so through Floork while those that wish to remain and see how FloorDAO evolves may do so as well.

Proposal

This proposal funds a fork of FloorDAO (here on referred to as FloorkDAO), whose purpose will be to govern a fork of the FloorDAO token pool. FloorkDAO will be governed by a new “FLOORK” token that is minted via the rage quit mechanism outlined in the implementation below.

FLOORK holders will vote in a FloorkDAO Snapshot to determine who from the community will become the multisig signers of their new DAO. FloorkDAO will be independent from FloorDAO, with its future decided entirely by FLOORK tokenholders.

FloorDAO will then continue forward with launching V2 of the protocol and beginning the build of its first NFT-Fi product later this year under a unified vision to grow a treasury of high-yielding blue chip and emerging NFTs.

If this proposal passes, it does not prevent a similar proposal from being put forward in the future. Similarly, a non-passing vote does not prevent the DAO from executing another similar proposal in the future.

Implementation

On the passing of this proposal, FloorkDAO will deploy a Rage Quit Contract (RQC) to allow FLOOR holders to burn FLOOR and receive FLOORK tokens in a 1:1 ratio. The RQC will be open for a period of 7 days, after which FLOOR burns will no longer be accepted.

FloorkDAO governance will operate on it’s own Snapshot via the floorkdao.eth space (snapshot.org/#/floorkdao.eth to be set up). Following the end of the RQC period, FloorkDAO will create a proposal to determine the multi-sig participants with the following timeline.

  • Day 0: FLOOR → FLOORK transfer window closes
  • Day 0-2: 48-hour time window for interested candidates to submit their interest in being on the FloorkDAO multisig via a FloorkDAO Channel in the FloorDAO Discord
  • Day 2-4: 48 hour multi-select snapshot vote for signers of the FloorkDAO multisig, the top 3 candidates will be chosen and set up a ⅔ multi-sig.

Within 24 hours of the closure of the FloorkDAO multi-sig vote, a pro-rata share of FloorDAO’s treasury assets will be snapshotted based on the RQ demand calculated below.

Once the FloorkDAO multi-sig address has been established, it will be added as a signer on the FloorDAO multi-sig to complete the RQ transfer in the final step.

RQDemand = TotalBurn / (TotalSupply + TotalBurn - GovernanceHoldings)

The assets to be included in the pro-rata distribution to FloorkDAO are as follows:

WETH*
stETH
USDC
DAI
PUNK
WIZARD
MAYC
MILADY
SQGL
BGAN
NNNN
SAUDIS
REMIO
*includes any ETH balances

Prior to the execution of this calculation:

  • All ERC721 tokens will be fractionalized into their corresponding ERC20 token via NFTX
  • All available harvests and claims will be made
  • All liquidity positions relating to these tokens (excluding FLOOR/WETH POL) will be temporarily removed to keep balances stable during the period
  • All inventory positions will be unstaked i.e. xPUNK will be converted to PUNK

Additionally:

  • Dust positions (less than $100) will be ignored
  • vNFTPERP tokens are excluded
  • All FLOOR tokens are excluded

The execution of this proposal then concludes following the transfer of the amounts given by the above formula to the FloorkDAO multi-sig.

Data

In the above RQDemand formula the following variables are defined as so: (estimate values are taken as of August 28th, 2023)

  • GovernanceHoldings = FLOOR held by either of the treasury addresses (0x91e453f442d25523f42063e1695390e325076ca2 & 0xa9d93a5cca9c98512c8c56547866b1db09090326) + FLOOR from POL + FLOOR from Charm position
  • 153,732.679
  • TotalBurn = Total number of FLOOR tokens deposited and burned to FLOORK during the 7 day RQC period. This is also the same number as FLOORK supply.

A breakdown of the current FloorDAO treasury is provided below if all positions were to be unwound. These numbers have been reviewed by the FloorDAO team.

Note, while numbers should stay similar to those presented below, they will move throughout the next few weeks as ETH price changes, NFT prices change, and NFTX LP positions are used for trading.

Proposal Period

This FIP#58 post will be left on the Forum for 4 days to gather feedback and make adjustments. After, FIP#58 will proceed to Snapshot for 4 days with the same options as the poll below.

Poll

  • For
  • Against
  • Amend
  • Abstain
0 voters
1 Like

While I disagree entirely with the summary and motivation contents of this proposal (the motivation is extremely transparent given there is a literal RFV group that coordinated the takeover of governance and community narrative in order conduct this for-profit extraction), the proposal itself is much needed and will allow Floor to move forward and succeed in the market without the targeted friction created by a handful of users who lack a vision for the long-term value of NFT-Fi.

I am in favour of the proposal for the reasons above, however I personally believe it is far too early to Rage Quit given the current market conditions, the DAO’s extremely low burn rate, Treasury yield, and an NFT-Fi market that is still in its infancy. While I’m confident this proposal will pass, I personally will not be participating in the RQ for these reasons.

The goal, as always, has been to work towards full decentralization of the DAO. We look forward to renewed growth following the departure of those looking for a short term exit and moving ahead by sharing Floor’s first product whitepaper following the launch of V2.

2 Likes

On a philosophical level, it makes sense to let folks leave on a fair value.

With that said, I am a bit annoyed and confused as to whether it is worth jumping through all those hoops with all those calculations and plans posted in the proposal with a rushed timeline before V2 when the RFV is like 20% off market price (which in my crypto experience isn’t that bad of a loss; maybe I’m too degen).* But if folks feel they were lied to about the backing and things are feeling more and more toxic for them, then I’d rather just cut ties now.

I think the team, who conceived of and built Floordao, are being more than fair about this, so props to the team. I get that this is a dao (whatever that means), but that the team is willing to work with folks wanting to leave in this timing feels above and beyond to me (please spare me the quotes about false advertising, I get the point). Yes, a rage quit made sense to come up with at some point, but I do feel like there’s more than meets the eye in this proposal.

All in all, I’m not a fan of the proposal which feels like it’s being done in bad faith. Despite that feeling, if folks are willing to go to all this trouble for this, I think it’s better to cut the losses now for a better future for both sides. As long as Floordao can still operate after the rage quit then I’m fine with it. I have no plans to join the rage quit but would not vote against it.

*I get that there’s slippage and for folks with a lot of money in this the slippage can be massive. I might just be too numb and crusty from my crypto losses in the past. And apologies if my math is off. I’m no math major. I see it as ~$6 RFV, and ~$5 market price right now.

2 Likes

Update:

Given 3rd parties may be using the UV3 oracles, Uni LPs will not be pulled. Rather the proportional assets of the UV3 pool moving to Floork will be sourced from the rest of the treasury.

1 Like

Does the current Snapshot reflect this change?

I echo the comments provided by @caps above about the summary and motivations, and while I’m also in favour of a RQ option I’m not going to participate for additional reasons.

The wording of the snapshot is different to the wording of this proposal and has moved away from implementing a Rage Quit to creating a forked DAO. While the main contents on this forum post focus around the process of a Rage Quit, the actual snapshot states…

the forked DAO may vote to do anything with the assets such as issuing a vanilla Rage Quit. This results in maximal conservation of momentum for the original and forked DAO.

Well known users like @dcfgod are helping lead this initiative so everything should run as required, however I would be much more at ease with

the forked DAO is created with the only purpose of issuing a vanilla Rage Quit. This results in maximal conservation of momentum for the original and forked DAO.

If there is a possibility that anything else could happen aside from the RQ then FloorkDAO should make that clear for users as part of the next steps. For example, if the majority of the DAO decide that they want to hold the assets and not sell until we’re on the other side of the bear to further maximise profits then users expecting a RQ will be left holding tokens with no liquidity and no ability to move back into Floor.

Again I want to highlight I have no distrust in @dcfgod, I want to make sure that current Floor holders will be made aware of any potential risks.

Floork Has Passed.

The window to migrate FLOOR tokens for FLOORK is now open and will close in 7 days at September 14, 2023 9:03 AM.

Instructions below for redeeming your FLOOR for FLOORK through etherscan: Part 1: Approve the FLOORK contract to spend your FLOOR

  1. Go to the FLOOR contract here: https://etherscan.io/address/0xf59257E961883636290411c11ec5Ae622d19455e#writeContract
  2. Connect your wallet to Etherscan.
  3. Select approve (0x095ea7b3)
  4. For spender, copy and paste the FLOORK contract address: 0xe2C73356DEd0d191eD43749ACBF7431198f58150
  5. For amount, type in the amount of FLOOR you plan on redeeming for FLOORK, and multiply by 10^9. So if you plan on redeeming 5500 FLOOR, then you would need to type 5500000000000. You can of course approve more than you plan on redeeming if you like; this value can also be adjusted in the future, but you will have to pay gas again.
  6. Click the “Write” button and submit the TX through your wallet!

Part 2: Redeem your FLOOR for FLOORK.

  1. Go to the FLOORK contract here: https://etherscan.io/token/0xe2c73356ded0d191ed43749acbf7431198f58150#writeContract
  2. Connect your wallet to Etherscan.
  3. Select burnAndRedeem(0x90884e0d)
  4. Type in the amount of FLOOR you wish to burn for FLOORK. Again, you will need to multiply by 10^9. So if you are redeeming 5500 FLOOR, type in 5500000000000.
  5. Click the “Write” button and submit the TX through your wallet! At this point, if you did everything correctly, you should see the exact number of FLOORK in your wallet as FLOOR you burned!

The 7 Day FLOOR → FLOORK Transition period ends in very soon at September 15, 2023 1:03 AM JST. Following the plan in FIP58, there will next be a 48 hour period for interested candidates to submit their interest in being on the FloorkDAO Multisig. This period will close at September 17, 2023 1:03 AM JST. Following which a 48 vote will occur to determine the signers at Snapshot.

Candidates thus far can be found in the floorkdao channel in Floor DAO Discord.

If any member would like to be added or removed from the candidate list, please post in that discord channel or in this forum.