Proposal #28: Update to Mycelium's offer #2


On 27 January 2021, Mycelium (formerly Lion’s Mane) posted an offer on GitHub to perform certain services for Tracer DAO. On 10 February 2021, that offer was accepted, via Proposal and vote, by Tracer DAO. On 14 July 2021, Mycelium’s updated offer was accepted.

Since that time, the Tracer DAO has grown significantly, including the following key developments:

  1. Completed first audit of the Perpetual Pools codebase with Sigma Prime;
  2. Launched the Perpetual Pools financial contract through the Tracer DAO factory;
  3. Launched a liquidity mining event for the Perpetual Pools financial contract to effectively distribute the TCR token for governance and incentivise liquidity providers;
  4. Engaged Ryan Sean Adams & David Hoffman from Bankless as advisors to Tracer DAO;
  5. Successfully voted in on Tokemak’s C.o.R.E. event to engage in a partnership for market making services for greater TCR liquidity.
  6. Engaged with Code 423n4 (Arena) for the 2nd time for an audit on the Perpetual Pools financial contract;
  7. Engaged Visor Finance to provide liquidity for TCR on Uniswap v3;
  8. Engaged Runtime Verification for a second audit of the Perpetual Pools codebase with Sigma Prime;
  9. Launched a TCR public distribution event via Gnosis Auction;
  10. Engaged with Bankless to provide 2 ‘Bankless Blitz’ media services;

As reported in Mycelium’s second quarterly report, Mycelium incurred U$468,074.75 in connection with its delivery of services from 10 May 2021 to 10 July 2021. As per the forecast for the last quarter, it was expected that our costs for quarter 3 and inevitably quarter 4 would significantly increase. Our costs have increased by approximately 220% since that time (approximately U$1.1m per quarter) due to further resource allocation in the following areas:

  1. Senior Development hires (2);
  2. Senior Business Development hires (1);
  3. Business Development hires (2); and
  4. Ecosystem/Community hires (2).

In the coming weeks, we are looking to further expand the team (additional Senior Developers and Marketing leads) to support the following strategic goals:

  1. Finalising the Perpetual Pools v2 contracts (SMA pricing, permissionless deployment, solving for volatility decay) and supporting versioning updates;
  2. Greater market exposure and adoption for the Perpetual Pools contract; and
  3. Building DAO frameworks to enable decentralised contributions to Tracer DAO’s contracts, community and growth.

We are currently spending approximately $400k per month. We are currently finalising Mycelium’s third quarterly report to Tracer DAO and will publish it in the Discourse in the next week.


In accordance with the Proposal engaging Mycelium, and to assist Mycelium to execute upon these strategic goals, Mycelium requests:

  1. The current remuneration of U$250,000.00 (or equivalent) per month (or part thereof) is increased to U$500,000.00 (or equivalent) per month (or part thereof) starting on the day that a Proposal implementing this Proposal is executed and ending when Mycelium is no longer engaged by the DAO, to be paid on the last day of each calendar month. If a payment does not occur because the DAO has insufficient funds, the amount of that payment will accrue and be paid to Mycelium when the DAO has sufficient funds to pay for that calendar month.

It is expected that all other aspects of Mycelium’s engagement, detailed in the Proposal passed on 12 February 2021, will remain the same.

Next Steps

In order for this proposal to take effect, it must be pushed to Snapshot DAO member and that Proposal must succeed.

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

Deliverables and Commitments

If this proposal succeeds, Mycelium’s Deliverables and Commitments, as outlined in the Proposal passed on 10 February 2021 as well as the update proposal passed on 14 July, will remain the same.

Variation and Termination

  1. Mycelium acknowledges that, if engaged, its engagement can be varied by future Proposals.
  2. Mycelium expects that any engagement will be terminated if they fail to deliver in accordance with the deliverables specified above.

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.

Mycelium wishes to declare the following conflicts of interest:

  1. It is an existing Service Provider to Tracer DAO.


Unless otherwise defined in this offer, all terms beginning with a capital letter which are defined in the Participation Agreement have the same meaning unless the context otherwise requires.

If this offer is accepted as a Proposal under the Participation Agreement, Mycelium may more formally document aspects of that Proposal.

Copyright Waiver

Copyright and related rights are waived pursuant to CC0.

Consensus check
  • Support proposal → push to Snapshot
  • Oppose proposal

0 voters

1 Like

I know I am going to get lambasted for saying this, but surely Mycelium should have factored in these additional costs with their previous proposals? Who is managing budgets and the roadmap and planning? I think (correct me if I am wrong) we have already accepted one increase in payment.
I understand Tracer is growing, and this excites me. I truly believe we have an amazing product and an amazing future ahead of us.
But what is stopping everyone involved in the project, from coming and saying “sorry” I need some more money, because I didn’t think about xyz. Will this be the last time that Mycelium asks for additional payments?

Again, I want to see Tracer grow, I really do, and I actually think Mycelium are doing an amazing job. But please, I feel this is not a good look, coming and asking for additional funds after contracts and amounts had already been agreed.

If we are going to have another vote on this, can we make it the last? Let’s pay $1m instead of 500K and be done with it. Lets make sure we 100% have the resources to push Tracer to where we all know it can go.

Sorry, just needed to get that off my chest. BTW, I do think you (Mycelium) are all doing a fantastic job.


Point taken @bobbyreddog. As per our initial proposal, the consideration was subject to change based on future proposals as stated in those proposals. We wouldn’t have asked for the amount we are asking for now in the early stages of the project as it did not have the funds to fund the consideration requested. As the market conditions changed and the team grew, updates to the proposal were necessary.

As per our proposal to the DAO, Mycelium is required to provide quarterly reports which you can find in the DAO Reports sub-category under General. These provide a status update on the current costs and future forecasts.

Please feel free to let me know if you have any additional queries or concerns that I can provide insight for greater understanding.