FIP#76 - Wind Down NNNN (ENS) Position

Governance
1

Summary

This proposal has the purpose of introducing the winding down of the NNNN (ENS: 10K Club) position held by FloorDAO. As of 2/23/2024, the FloorDAO.eth wallet holds 1.258 NNNN, 0.2108 xNNNN, and 6.209 xNNNNWETH (3.724 WETH + 10.48 NNNN). Liquidating the ENS NFTs can be done through the marketplace with the highest offers, and the WETH should be held in the DAO treasury multisig.

Motivation

The ENS:10K Club position has been one of low yield and capital growth. NNNN has had low yield, making it an underperforming collection in the DAO treasury, and there has been very little support from the ENS community for sweeps or liquidity during previous Gauge Wars. Without the backing of the communities - both Floor and ENS - the position has remained idle with low activity in the NFTX vault.

In addition to being a low performing collection, NNNN lacks the support and infrastructure needed for use in the V3 of Floor’s main avenue for liquidity deployment, NFTX.

Proposal

  • Claim/redeem all Floor ENS:10K Club NFTs
  • Liquidate all ENS holdings
  • Remove Liquidity & Retain 10K Club
  • Remove Liquidity & Liquidate 10K Club
  • Do Nothing
  • Abstain
0 voters
2

I was initially a large advocate for the NNNN collection to be added to Floor and for the logic behind the liquidity pool setup at NFTX. However, over the past year I’ve seen the demand for ENS (NNNN especially) decline.

I think that the liquidity held and the yield from selling into offers can make a solid impact over a couple of sweeps via a V2 strategy to drip feed the resulting WETH in.

This also has the benefit of meaning that we don’t have operational overhead of renewing the domains, which is nice :+1: