MutantCats DAO

The objective of this proposal is to define how DAO-owned $FISH tokens are managed in the case of a vault buyout.

(This proposal is submitted and supported by the DAO Tokenomics Busygroup).

Description: $FISH token represents fractionalized ownership of DAO assets. However, >50% of $FISH is held by the DAO itself, making it nebulous as to the actual backed amount per $FISH token. If the DAO vault was bought out… Would the DAO itself receive a fraction of the ETH? Would cats?

This proposal sets out a clarification that $FISH token holders will receive 100% of the proceeds of a vault buyout, and the DAO will keep 0%, thereby allowing the backing per $FISH token in circulation (meaning not owned by the DAO) to define the worth of $FISH rather than the fraction of the total number of $FISH coins. As we can’t feasibly change the vault contract in the near term, the following policy shall be adopted by the DAO: Once our vault is bought out, a snapshot will be taken of $FISH holders within 24 hours of the buyout completing. The $FISH in the DAO’s possession at that time will be distributed to the non-DAO $FISH holders in proportion to their percent of circulating $FISH owned. A small portion will be withheld to cover the gas cost for a slow (but low gas) transfer of DAO $FISH to other $FISH holders at the time of the snapshot. With 99%+ of the $FISH supply distributed to $FISH holders with this method, $FISH holders can now claim their proportion of vault ETH value. The DAO may then claim its remaining small share of $FISH-eth rewards to offset the gas cost of this distribution.

Benefits: • Clarifies that 100% of the vault value is held by $FISH holders (Excluding the MutantCats DAO) at any given time. • A direct parallel to fixed-fraction vaults where the tokens represent a constant fraction of the vault, empowering $FISH holders and encouraging HODLing (If you value our vault you value your $FISH more now). • Should help to stabilize the $FISH price at a more predictable floor value that would currently (with ~1436233 FISH in circulation and at current vault valuation of 892.24 ETH based on research by the Treasury BusyGroup) be ~0.0006212 ETH/FISH or roughly $2.57/FISH (with utility and voting value added on top of that).

Summary of Proposed System: In the case of a vault buyout, a snapshot will be taken and the $FISH owned by the DAO will be distributed proportionally among $FISH holders to allow $FISH holders to cash out near-100% of the vault value for themselves. Incidentally, this makes each FISH backed by ~$2.57 of vault NFTs at the time of this proposal.