PieDAO

Full discussion can be found in this forum thread https://forum.piedao.org/t/pip-68-kpi-options-redeemable-asset/1176

SUMMARY The KPI tokens were distributed weeks ago, and this vote intends to determine how the distribution would be done.

BACKGROUND The reason for choosing veDOUGH vs DOUGH as the asset for redemption of the KPI Options lies in the clear intent to avoid flooding the DOUGH circulation supply with up to 5M tokens at the moment of conversion. This would in fact invalidate the whole case built around the creation of incentives in order to pursue a higher % of staked DOUGH out of its entire circulating supply.

The possibility to have the KPI Option backed by veDOUGH was somehow aired since the very early convo held with the UMA tech team. Unfortunately this wasn’t possible with their standard contracts, consequently the initial proposal posted on the PieDAO forum referred to DOUGH as the asset backing the KPI Options. Same for the initial snapshot vote signaling support by the community for this initiative.

As part of the discussion triggered by such proposal, the community has been further exploring the possibility to still get veDOUGH as asset backing the KPI Options, requiring the development of a wrapper taking care of converting the KPI Option to veDOUGH at expiration. This solution was eventually conceptualized and developed shortly after by the core team for the reasons above.

In order to avoid gray areas on which should eventually be the asset to be distributed at expiration of the KPI Options (March 2022), we would propose to the community to formally select one among the 3 following solutions:

A) Options redeemed as veDough B) Options redeemed as Dough C) Both A & B + an incentive to choose veDough

SPECIFICALLY Option A) corresponds to the current implementation of the KPI Option, developed by putting the above mentioned wrapper in place that allows options to be redeemed automatically as veDough. Main benefit of this option is undoubtedly the possibility to avoid selling pressure on our governance token DOUGH, while at the same time incentivizing the long term alignment from our community members to PieDAO.

Option B) Options redeemed liquid as DOUGH, with the main downside being its dilution and negative price impact, and the extra cost for those willing to eventually stake those tokens to veDOUGH.

Option C) User would select either A or B at the conversion of the KPI Options. This would provide the option to allow each address to choose whether or not to stake their tokens, with unknown effect on the DOUGH Circulation supply and price. Additionally, as per the forum discussion, further incentives will be discussed if this option is chosen in order to drive users towards veDough.