Proposal #17: Sushi MISO Auction - Public distribution event

Summary

This proposal has been formalised based on the previous EOI - Sushi Miso Auction Proposal.

Following extensive discussion by Tracer DAO members and the Tracer community on Discourse - this Proposal relates to Tracer DAO engaging Sushi to conduct a public token distribution event via batch auction to be conducted on Sushi’s Minimal Initial Sushiswap Offering (MISO) platform.

Sushi’s MISO platform is described as follows: MISO aims to drive new capital and trade to the exchange by increasing the attractiveness of SushiSwap as a place for token creators and communities to launch new project tokens.

If this proposal succeeds, Sushi will provide a batch auction for the public token distribution event. Sushi describes batch auctions in its documents as:

A Market method whereby a set amount of tokens are divided amongst all the contributors to the Market event, weighted according to their contribution to the pool. Whatever your percentage of the total raise, that’s the portion of the total tokens on offer you will receive. Straightforward. Batch Auctions will be useful for projects looking to ensure that everyone taking part is rewarded, no matter their net worth.

The reason for proposing the use of Sushi MISO’s batch auction over other alternatives, such as Gnosis Auction, is that it provides wider visibility for the public token distribution event because it is hosted by Sushi (a large player in DeFi) and also provides the option of simple migration of liquidity to Sushiswap Exchange post launch.

Consideration

Use of the MISO platform is of no cost to Tracer DAO. The passing of this proposal will allow 50,000,000 TCR tokens (5% TCR network equity) to be transferred to the MISO whitelisted address to be provided for the public token distribution event.

Parameters

The parameters for this proposal arise from a community poll on the Discourse in addition to further advice from strategic partners and academic advisors to Tracer DAO. Additionally the minimum valuation capitalisation is proposed based on a combination of the mentioned polls, previous valuations and advice to Tracer DAO from advisors Chris Berg and Peyman Khezr of RMIT made on Discourse referencing their research paper: Setting the reserve price for the Tracer DAO Gnosis auction.

The proposed parameters for the auction are as follows:

  1. Total distribution: 50,000,000 TCR (5% TCR network equity)
  2. Bidding token: DAI (https://etherscan.io/token/0x6b175474e89094c44da98b954eedeac495271d0f)
  3. Auction token: TCR (https://etherscan.io/token/0x9c4a4204b79dd291d6b6571c5be8bbcd0622f050)
  4. Minimum price per token: $0.05 DAI = implied minimum raise of $2,500,000 DAI (min. fully diluted valuation = $50,000,000 DAI)
  5. Maximum price per token: $0.25 DAI = implied maximum raise of $12,500,000 DAI (max. fully diluted valuation = $250,000,000 DAI)
  6. Auction start date: September 10th
  7. Auction period: 5 days
  8. Auction type: Batch Auction

Deliverables

If engaged by Tracer DAO, Sushi will provide a TCR (Tracer governance token) public distribution event for the Tracer protocol via batch auction on the Sushi MISO platform for a total distribution of 50,000,000 TCR (5% network equity).


Conflicts of Interest

In the context of the Tracer project, conflicts of interest include:

  1. Existing Service Providers who are Related Parties; and
  2. Existing (vested and unvested) holdings of TCR tokens.

MISO Auction (Sushi) holds the following conflicts of interest:

  1. No conflicts of interest to declare.

Copyright Waiver

Copyright and related rights are waived pursuant to CC0.


Next Steps

In order for this Proposal to take effect, it must be pushed to Snapshot by a current DAO member and then be successfully voted on.

We encourage the discussion of this Proposal in the comments below.

Consensus check
  • Support proposal → Snapshot
  • Oppose proposal

0 voters

Is the treasury that low needing to urgently top up with a crowd-investing campaign?

Since I’m an outsider, I won’t comment on the the merits of doing a raise by next week but I will observe

if vote YES then

  • address the decoherence between reality and the Participation Agreement … probably by stripping out Preamble #3 (DLT technical understanding), #5 (active user of DLT - given how even govenors are not bothering to vote the expectations for general public are not going to be higher in participation), and any other conflicting provision(s)
  • Implement Item 10 a) removal of token from wallet (so far TracerDAO is select group but in case of trouble-makers, how to exercise exile?)
  • put in place reporting requirements, eg transfer in of $10k DAI would need a report to FinCEN if deemed suspicious origin of funds, ditto for all other jurisdictions AUSTRAC, etc … The SEC is hunting for visible violators so trying to avoid negative attention is doubleplusgood

if vote DEFER/ aka NO for now

  • prepare the governors to welcome hundreds if not thousands of new participants (aka onboarding as to the covenants of TracerDAO Item 6b etc)
  • get a chance to check Preamble #9 and any geofencing provisions beyond Point 5 o) blacklisting
  • write a proper white paper section 4.2, readable at general public level which is not just a technical brief (and 2 pages is calling brief generous :sweat_smile:) explaining the purpose and values of TracerDAO

Again as outsider, the TracerDAO participants might have a better idea of what is needed to handle an influx of (essentially random) people so please take the above as my professional observations and not any legal advice.

As a side story, I was around in the 90s when the internet escaped from academia. During spring-time the seniors would (with cluebat) teach frosh netiquette and how to be responsible user of usenet and other tools. Then when AOL started carpet-bombing homes for mass adoption, suddenly spam, clueless dweeds and general sheeple drove the internet savvy off the newsgroups and MOO-channels. There’s a claim that this is already happening. But think about the consequences of YES or Yes but LATER before voting.

1 Like

Auction alternative - Gnosis Auction

As per the EOI for the Gnosis Auction, this poll is to revert back to the original idea for using Gnosis Auction instead of MISO Auction.

The reason for this motion is due to the fact that the Gnosis Auction functionality gives a truer price discovery/market cap of the Tracer project. Gnosis Auction offers bidders the ability to individually signal the true valuation of the Tracer project by specifying a bid amount and purchase amount.

Additionally, without a limit on the maximum market cap attainable (as we previously thought was allowed), the Gnosis Auction method better mitigates against hyperinflation of a token than MISO auction does.

Please vote in the poll below to proceed with this change. If accepted, communications around this change will be publicly presented to the community via an official announcement.

Consensus check
  • Accept change to using Gnosis Auction
  • Reject change to using Gnosis Auction

0 voters