In the beginning, our DAO consisted of GHST holders only. With AGIP8, AGIP9, and AGIP17, we decided to expand that definition to include Gotchis, wearables, and parcels.
GotchiGang has supported the growth of the Aavegotchi ecosystem with 8 figures worth of DAI (USD); buying GHST, diamond handing assets. We’ve been through thick and thin together.
Throughout this whole time, we have come to rely on the inertia provided by the bonding curve. By shutting down the curve, we expose Gotchi asset holders to great risk. GHST could dump hard, hurting GHST holders. Or GHST could pump hard, hurting Gotchi NFT holders looking to swap back to GHST. Once we decide to shut down the curve, we could see many DAO members desperately trying to rebalance their portfolios in preparation of this event, leading to even more volatility and FUD.
However, shutting down the bonding curve could also be a great opportunity to give back to our loyal community without pitting them against each other in some leaderboard. We’re all one DAO.
Hence, we propose to distribute the DAI based on overall VP. Currently the total VP is roughly 60M (according to AavegotchiDAO Treasury Balance), while the bonding curve DAI is roughly 20M. So every DAO member would receive about 33% of their VP in stablecoins, depending how collateral is distributed. We think that 20% of treasure is appropriate to allocate for liquidity, as deep liquidity is gone without curve.
On top of rewarding DAO members for their financial support, and their faith in the project, this distribution model is also likely to support prices, and could even cause a run on gotchi assets. E.g. at the time of writing, there are spacious parcels with 1028 GHST of VP on the baazaar for about 360 GHST. So at current prices, they would be almost free if this proposal were to pass. These arbitrage and discount opportunities will likely see the curve’s stablecoin reserves increase significantly. A great marketing opportunity.
However, how would we accomplish this?
The next part of the proposal is one possible solution. However, this proposal is not dependent on our suggested solution. We could use any other means for distribution.
For Gotchi NFTs we propose airdropping the stablecoins in the holders wallet. For GHST however, we’d need a different process.
GotchiGang produced over 2 years worth of articles, blog-posts, tweets, messages, advertisments, podcasts, spaces, streams, and youtube videos linking GHST to the Bonding Curve. All of this will be invalidated once the curve is shut down. In essence, GHST will no longer be GHST.
Hence, we propose to fill a contract on Polygon with the remaining stablecoins. The contract would allow a user to swap their GHST for GHST unchained (or GHST-light, or GHST2, or whatever we wanna call it) plus stablecoins. This would put DAO members in control of the timing of when they’d receive their stablecoins (which could be important for tax purposes).
The DAO has large GHST reserves and will hence receive a large chunk of the stablecoins. Some of it could be used to provide liquidity for GHST2. If the DAO feels like more liquidity is needed, we could ear-mark some of the curve’s DAI to be used for LP purposes and only distribute the remaining funds in the manner outlined above.
PC also has large GHST reserves and owns Gotchi assets as well. So they too would receive a large chunk of the stablecoins, ensuring their financial stability for the coming months while also providing a little more pressure than a never-ending tap or 40% of the entire DAI reserves.
We strongly feel that this is the most appropriate way to distribute the curve’s stablecoins in case of a shut-down.
- It balances the high risk Gotchi-asset owners face when the curve is shut down.
- It distributes funds fairly, based on how much skin people have in the game.
- Distributing 20M to asset holders is also a great marketing that will likely see new users buying in before the curve is shut down.
- Instead of FUD and despair over a curve shutdown that sees long term holders trying to sell, we could trigger a gotchiwide bull run. Such a bull run might cause a strong appetite for GHST, maybe even doubling the DAI in the curve before it shuts down.
Total VP estimation:
All GHST in existence: 45,429,036
All Gotchis: 3,825,528 (source: AavegotchiDAO Treasury Balance)
All Items: 4,137,500 (source: AavegotchiDAO Treasury Balance)
All parcels: 6,200,800 (source: subgraph)
Total VP: 59,592,864 (edited)
PC proposal is 20% Liquidity / 40% Dao treasury / 40% Pixelcraft
Our proposal is 20% Liquidity / 80% to VP holders.
Proposal was put together by me and CryptoGotchi#9089, lets discuss the merits of this proposal.