FATExDAO: Explanation of major DAO proposals posted to snapshot
3.19.22 — Re: MATIC transition (general approval of technical details required prior to presenting specific details); DAO Board of Directors; V2 smart contract details; FATExFi.
***PLEASE NOTE THE DISCLAIMER AT THE END — THE STATEMENTS OF THE DISCLAIMER APPLY TO ALL CONTENTS OF THIS ARTICLE***
The purpose of this article is to provide a quick update and detail the proposals posted on snapshot.org for members to vote.
Apologies for the long length. We felt it best to keep everything currently up for DAO decision in one written explanation.
Please note that we have moved our snapshot.org governance forum to the following URL:
Note: the links referencing the DAO governance platform that are live have not been updated with this link.
To participate — you must have the FATE governance token imported into your wallet using this contract address to interact with the snapshot link and contents on it: 0x72d2f2d57CC5D3e78c456616E1d17e73e8848c3A
The proposals outlined here and currently posted in snapshot will permit us to formally present, decide and implement the details related to the short-term proceedings of the DAO.
The time period of these three proposals is only 72 hours (2x the minimum): they have been discussed prior and should not come as a surprise.
Please vote for approval or denial of the proposals using the link above.
The point of the proposals is that we must decide together what is best for the purpose and mission of the DAO. Each title relates to a specific proposal.
Proposal to move DAO web 3.0 apps/ops to MATIC:
The proposal can be found HERE.
Note the move to MATIC is not expected to transpire for 4–8+ weeks from now depending on several variables. This will allow time to decide (and re-decide after dialogue) the specifics.
In the interim, we have a strategy to increase demand for FATE on Harmony.
FATExDAO is a fintech DAO that needs to position itself to be able to build commercial/bank-grade products. Harmony One is unable to support the types of products that can be used in financial services reliably, MATIC can at least build the foundation of our product set: FXD — Fiat Exchange Denomination — an algo-stable reserve foreign currency/remittance transaction utility token that is backed by a very specific set of asset(s) (which have never been used as monetary capital reserve asset) — remains at a price +/ $3 that allows for a single/central-peg foreign currency exchange system and remittance platform. More details on FxD will come, we are keeping it proprietary until it is time to start building the beta. When that occurs we will have the DAO decide to proceed or pivot to use the capital for a better idea: remember if you have a better idea, before or after, please share!) We are the first to publish docs discussing a return to a “gold-standard” monetary system digital asset(s) for a reason and have a very specific design. All other projects that are publicly trying to build “reserve currency” tokens (i.e. Frax, Maha, Olympus, and many more) are not doing anything new and that could arguably be a contender for accomplishing this, while FxD does. We find it most logical because the main areas that large-cap, non-stablecoin, altcoins/projects focus on are predominate: blockchains & middleware, centralized fiat and/or cryptocurrency exchanges, and creators of real-world applications/ecosystems that use DeFi/DLT/digital asset tokenization. We are a “project” that falls into the last category.
The Harmony eco-system, central team, Harmonites, and especially those that are members are responsible for the origin of FATEx. It has been a perfect place to start the DAO’s path. Blockchain/DeFi/cryptocurrency is about survivability, the move and reissuance of FATE on MATIC will allow the DAO to join a larger, stable blockchain that meets the requirements for the initial build and deploy of FxD and repurposes the governance token under a DApp structure that helps ensure long-term membership and capital contribution.
Proposal to redeploy, not migrate, FATE on MATIC
This proposal can be found HERE.
We are proposing a redeployment of FATE onto MATIC for several reasons:
- Current FATE holders do not have to do anything, from a development perspective it is much easier.
- With withdrawal fees, a more conservative, fixed rewards schedule, and the ability to essentially “re-issue” FATE as a new token offering on MATIC, the value of FATE on MATIC will depend more on demand because the supply can be controlled and sustainable.
- Therefore the hope is that a major, upside-positive, repricing event is expected.
- This can be accomplished, like other DAOs, by issuing a new token with a new name. The DAO is not a token-oriented, liquidity yield-farm scheme. Until FATE is securitized and the DAO has started to achieve its mission, it is not accurate to state a value for the DAO’s governance token. FATE allows members to contribute their capital and decentrally organize this in a way that allows fair participation, the creation of value by developing innovations, and allows members to gain from the blockchain/crypto/digital asset tokenization revolution, collectively, as a fintech enterprise organization.
- This will allow existing FATE holders (on Harmony) to receive a percentage of the new FATE on MATIC that should have more value than it did on Harmony, in a way that is the most convenient.
- It increases the desirability of the FATE token on Harmony since the pre-issued MATIC FATE to be allocated to FATE Harmony holders will be based on the percent of Harmony FATE held by a member at the time of ending Harmony FATE rewards/emissions, and not a 1:1 transfer.
The proposal for the allocation and transfer of FATE MATIC to FATE Harmony holders will be described in its own article when it is proposed.
Technically, to make the proposal, we must first approve that we will redeploy FATE on MATIC as a new token with its own supply and not allow the contract address of the current, FATE Harmony token to be connected in a way that will permit it to be migrated/bridged.
If redeployment is approved: a new tokenomics framework and rewards schedule will also need to be proposed, of which the FATE Harmony holders allocation details will be an important component.
Since this decision will help existing and new members decide what to do with FATE on Harmony (i.e. buy more to increase the percent of FATE MATIC a member will receive) and has been discussed/and publicized “unofficially” for the last few weeks we are keeping the length of the proposals voting period to 72 hours(2x the minimum).
FATExDAO Board Member/Team Creation
The DAO needs as much support and member communication/participation as possible. Also, we must constantly strive to conform to the concept of DeFi as it relates to DAOs and our endeavors.
The snapshot proposal related to this can be found HERE.
Anyone with a specific skill that would add value and/or a member that is interested in becoming more involved in the day-to-day operations and/or receiving the ability to submit formal DAO snapshot proposals independently will be given the opportunity to do so.
This proposal is to permit the DAO to recruit and compensate members for the above and create a DAO Member Board of Directors — these directors will be elected 1–4x a year, meet 1–4x a month with the current DAO lead team/dev(s), execute actions items taken on through volunteering, and to discuss and help decide DAO direction, after a grace period an elected DAO Director will have the ability to independently create snapshot proposals. This will last indefinitely, but at minimum, for the interim period of the MATIC move, until it makes sense to change this structure.
Approval of this proposal will be followed by a proposal requesting approval of the exact details of this and commence with the election.
FATExDEX becomes FATExFi
The DAO’s platform/strategy at the initial stage is to accumulate capital from DAO membership (holding FATE) and use it to build FxD (and other DeFi financial products & services). As you will see after these initial proposals’ voting periods have ended, we will also be proposing to only have 2–5 liquidity pools on the MATIC DApp.
Since FATExDAO is not a dex we are proposing to change the name to FATExFi. Find the snapshot page for this proposal to place your vote HERE.
V2 FATEx DApp smart contract updates for deployment on MATIC — fees
There are currently no fees, this has helped hinder real members by encouraging short-term yield farming. Fees like these should have been in place at the original Harmony mainnet of FATExDEX.
The proposal found HERE, is to have two layers of fees at the withdrawal of the LP: a locked rewards fee and a withdrawal fee.
The fees are steep in the short-term and become more lenient after 4 weeks. The locked rewards fee is taken from the accumulated locked rewards received for staking the LP, these go back to the FATE rewards controller for future distribution. There is no locked reward fee if an LP is staked for longer than 1555200 blocks (MATIC has a 2 blocks per second rate like Harmony). There is always, at least, an 0.08% LP withdrawal fee. The withdrawal fee benefits members by taking it from the LP as it is withdrawn and basically autobuys xFATE, which improves the price of FATE and xFATE. xFATE will essentially receive all DApp fees. We are suggesting this should always be charged because removal of the capital contribution is punitive to the DAO.
These fees will not occur until the FATE redeploy on MATIC. WHY: it is easier for development to focus on the FATE to MATIC redeploy and incorporate V2 features (there is also a membership rewards controller based on time that is not being used immediately) than it is to deploy the new smart contracts on Harmony first.
The fees can be changed by DAO vote at any time.
The proposals outlined above are required to officially approve the technical aspects of moving FATExDAO to MATIC.
Immediately after the outcomes, the DAO will need to vote on these topics:
- The tokenomics for the issuance of FATE MATIC:
(Note the proposals will attempt to maintain the original tokenomics, as much as possible, except for aspects that would be enhanced by their adjustments).
- Pre-allocations will be adjusted from the original to accommodate for a significant FATE Harmony holders’ token receipt/transfer. This allocation is expected to be a fixed percent, granted as locked FATE, which will be evenly released to original FATE Harmony members (holders) over a period of time that is chosen to reduce the impact of this supply increase on the price of FATE MATIC and ensure that the recipients are (ideally) enabled to regain and add more than just lost value.
- A FATE reward schedule that is essentially fixed (until DAO vote determines otherwise).
- The length of the reward epoch(s).
- The percent of FATE rewards that are locked/unlocked and the details of releasing the locked rewards.
- The LP pairs to be opened for FATE MATIC reward allocations are expected to not exceed 5 in total. (i.e. FATE:USDC, MATIC:USDC, FATE:PAXG, PAXG:USDC, FATE:xFATE)
- Increasing emissions for FATE Harmony, before the move to MATIC to encourage members to increase their holdings for a larger percent of the pre-issue FATE MATIC allocation.
- Approve CapEx spending for marketing, content upgrades and other costs associated with the MATIC redeploy.
Please use discord/telegram to discuss the proposals and participate!
None of the information communicated should be taken as financial advice. You must be responsible, do research and make your own decisions regarding participation as a DAO member. The messages and/or written content contain proprietary information — and are covered by trademark and copyright, with patents pending. NOTHING SAID SHOULD BE TAKEN AS INVESTMENT OR FINANCIAL ADVICE.