Friends With Benefits

Authors: Treasury Team

Summary

This proposal outlines a process for FWB Protocol (“FWB”) to allocate a percentage of projected revenue generated by FWB DAO to routinely buy $FWB tokens off the open market in order to replenish the treasury with our native token. This has been reviewed by our legal counsel and approved as a compliant approach to restocking the treasury.

Why

It’s important for us to buy $FWB tokens for a few reasons:

• The DAO/UNA has been restricted in its activities due to a low amount of $FWB tokens in the treasury

• Buying $FWB tokens will facilitate the initiation of new experiments by the Council and community members to develop new use cases

How

FWB DAO is proposing to allocate an initial 2.5% of all revenue generated by FWB DAO, on a quarterly basis, to this restock protocol. Revenue from FWB has historically been generated from partnerships, events, and NFT drops.

In 2023, FWB is projected to generate $800k from partnership revenue. Had this proposal been implemented at the start of the year with 2.5% committed to restocking the treasury, it would have resulted in a $20k $FWB token purchase over the year sufficient to explore a few different experiments.

Timeline & Details

Upon this proposal passing, a smart contract will be developed which will be responsible for purchasing $FWB tokens on a regular basis, depending on the volume of $ETH supplied to the contract. This smart contract will leverage an off chain randomness generator to purchase $FWB tokens from the open market using a portion of the $ETH available in the smart contract.

Upon execution, invoicing, and receipt of proceeds from future partnerships, a percentage of the proceeds will be transferred to the smart contract in the form of $ETH. The exact percentage will be determined by the Treasury Lead at that time.

The percentage of contribution is up to the discretion of the Treasury Lead to decide based on operational needs and priorities. Treasury Lead has the ability to change this percentage on a maximum of once per quarter.

Looking Forward

The goal of the program is to operate indefinitely, with a corresponding outflow of $FWB tokens for the implementation of new use cases and programs devised by the Council and community members.

The program can be suspended or terminated through the approval of a new proposal.