Proposal: OTC sale of SHU to G House Capital for LBP collateral

Shutter DAO DAO Proposals
1

Status: Proposed

Forum Proposal Author: Bob the reBuilt (G House)

Forum Proposal Created: 4 Feb 2024

Summary

Sell 5 million SHU from the treasury for $200,000 USDC for the purpose of acquiring sufficient funds for LBP collateral as well as aid in promotion before, during, and after LBP. This is a sale price of $0.04 per SHU

EDIT: This proposal is not for a static $200k, but for any amount between $10k and $200k that would be required by the DAO for funding leading up to the LBP. This amount can be determined after any other funding has been finalized.

Proposal

Shutter DAO 0x36 recently voted to run a Liquidity Bootstrapping Pool (LBP) on Fjord Foundry in mid February. This proposal would fund the treasury to give a large degree of freedom in optimizing the initial parameters, as well as cash on hand for expenses that come up before, during, and after.

G House is a mixed group of KOLs, researchers, advisors, and investors. We put skin in the game and then throw all our effort into helping projects succeed. In this case, in addition to supplying funds to the treasury, we will help guide LBP parameters and then push hard to see the LBP raise as much as possible for the DAO to be sufficiently capitalized to achieve its vision.

Rather than saying “pay us for undisclosed and vague marketing,” we are instead saying “let us pay you, and then go do work to provide value.” After the LBP conclusion, G House will submit another proposal for retroactive recognition of efforts and seek a SHU grant. That is, the DAO can determine if our work has provided value and reward it accordingly, instead of paying first and hoping for the best, without recourse.

Voting Platform

Fractal (on-chain transaction details to be added)

Vote

  • Vote “YES” to conduct the proposed sale

OR

  • Vote “NO” to not conduct the sale
2 Likes
2

Thank you for a good proposal and the concern on DAO cash reserves.

5 million tokens is 0.5% of the fully diluted tokens.

This would set the Shutter fully diluted market cap to $40M.

It’s in line with other similar early crypto projects.

However, because it is a significant amount of early liquidity, any rational investor would want to have a lock-up for this kind of chunk. “Skin in the game” means the mixed group of G house will tolerate vesting, as they are here for the long game.

There is no discussion on the proposal what are the DAO needs for the cash (budget etc.) and whether $200k is a good sum or not.

  • Does DAO need this cash (or how much cash it needs)
  • Is G House the right party to do such a deal
  • Should G House be treated the same as other early investors and DAO members
  • Why G house is not buying from directly from Fjord pool if they want unvested tokens
  • What vesting terms the deal must have
2 Likes
3

The difficulty is that as a DAO, we do not have anyone that can directly converse with us and tell us the exact goals and needs of the LBP. What variable do you want to maximize? Holders and exposure? Positive sentiment through upward price action after the LBP raise completes and DEX liquidity is added? Protecting the bottom price valuation during the LBP? Total amount raised, without large concern for price action after LBP? What is the minimum amount of funds needed to raise during the LBP in order for it to be “not a mistake” to have launched it?

We can walk through exact parameters and simulations of what is needed depending on those answers. The DAO may need as little as $50k and as much as $250k depending on what, exactly, it is trying to optimize during the LBP.

You are right that we could simply buy from Fjord during the LBP. If the DAO is not in need of any funds prior to the LBP, and is sufficiently capitalized currently, or has easy access to the funds needed, then this may not be something that is needed.

I speak candidly in all my interactions. So I will speak candidly in my reply. If I am buying on an LBP, then my hope is to buy the lowest possible price. Therefore my incentive is not to try to push an LBP until after I have fully allocated. Why would I be trying to get others to buy before me? However, if I have already bought in, then I have an aligned interest in getting as many eyes on the LBP as possible both before it starts and throughout its entire duration.

1 Like
4

I am going to vote no for this proposal, as there are alternative proposals with vesting.

For those who want to obtain unvested tokens, I recommend to buy them from Fjord when the token floats.

1 Like
5

i agree with miohtama and will vote NO as well

1 Like
6

I calculate that Shutter DAO 0x36 will need a total of 150,000 USDC before/during the LBP.

1 Like
7

To add a little bit of clarity, our proposal is for unlock of tokens at the end of the LBP. We would love to provide the capital required to see the SHU LBP be as successful as possible. What we provide is both the cash to cover needed expenses, and our full work to help the LBP raise enough to see that the team can accomplish the vision.

If the only acceptable terms are those of long vesting, then I believe we would wait and participate in the LBP itself instead.

2 Likes
8

I would agree with miohtama and say no for this proposal. This is a big percentage with quite low valuation(basicly same with the first round) and no lockup period. I encourage non-lock up token only come from LBP. By the way, we also hire the markting consulting to cooperate with kols, how G house could actually help us ? what exactly resourse and connection u got?

1 Like
9

We will vote no for this proposal mainly for the same reasons outlined by other members

For marketing-related proposals, it might be better to create a proposal separately.

We think as a treasury diversification proposal this one is a bit vague and less favorable for DAO compared to another one

1 Like
10

@Bob_the_reBuilt - We have another proposal in the forum from anon syndicate with terms that seem to be getting positive feedback.

Would you ever consider supporting their call for more help on their proposal, or matching those terms?
This quote is from that proposal thread: Proposal: OTC sale of SHU to anon syndicate for LBP collateral

I’m sure you understand it wouldn’t be ideal to accept two offers with very different sets terms.

2 Likes
11

I definitely understand that the DAO should take the best offer it is given. I think that for us, at the given valuation and at their proposed vesting terms, the risk is too great in these current market conditions. However, if there is still additional funding required after their proposal is accepted, we would be happy to modify our proposal to fill the gap. I have edited the proposal to reflect that.

3 Likes