Decentral Games

Background

In addition to significant ICE holdings, the DG DAO Treasury’s “Gameplay Hot Wallet” has ~283K DAI, ~192 ETH, and ~490K MANA. Excluding ICE, the USD value of these holdings is ~$2.8M USD.

The DG DAO has paid for Uni-v2 ETH-$DG LP since 2020 token launch, and per Proposal #QmNsYYE we plan to pay for this LP for New $DG post token split.

Proposal

(1) Upon token split, convert $1M USD MANA from Gameplay Hot Wallet to ETH, take this ETH + $0.5M USD in ETH from the Gameplay Hot Wallet, and pair $1.5M USD in ETH with $1.5M in New $DG from the DAO’s “$DG Wallet” to create a $3M USD Uni-v2 ETH-$DG position for New $DG. This LP position will remain in the DAO in the “Liquidity Provided” section.

(2) Do not pay for Uni-v2 ETH-$DG LP for New $DG.

Rationale

With other two open proposals to create a $3M MATIC-$DG and $4M xDG-$DG pools on QuickSwap post token split, having $3M of ETH-$DG LP on UniSwap would be sufficient DEX depth for community members and investors to trade in and out of $DG positions.

After using $1.5M USD from the Gameplay Hot Wallet, we would have ~$1.3M USD across MANA, ETH, and DAI; this would be sufficient to back bets.

The DG DAO has paid for liquidity since token launch on December 1, 2020. This has been a very large source of emission/inflation on the token. Now that the DG DAO can afford to supply $DG LP across ETH Mainnet and Polygon Network ourselves, we should make this move to end rewards. We can concentrate on rewarding those staking in Governance.