ShapeShift

SCP-192: Tokenomics Workstream Renewal (Q2 2025 - Q1 2026) Term: March 1, 2025 - February 28, 2026

Summary This proposal seeks to renew the Tokenomics Workstream for a full-year term, ensuring the DAO’s financial resilience, governance efficiency, revenue optimization, and FOX tokenomics strategy. Over the past year, ProfMcCarthy has led substantial improvements in treasury management, governance transparency, and revenue modeling, while ensuring data accuracy and visibility across ShapeShift’s ecosystem.

The DAO Finance Committee (DFC) will continue in its current form, ensuring structured oversight of ShapeShift’s financial strategy and maintaining DAO-wide fiscal responsibility.

Key Focus Areas for 2025: ✅ Treasury & financial health – Stability, diversification, and PoL growth ✅ Revenue optimization – Fee model refinements and DeFi strategy expansion ✅ Governance efficiency – Improved vote execution and transparency ✅ FOX tokenomics & demand strategy – Token utility experiments and adoption growth ✅ Automation & smart tokenomics – Deploying contracts for automated treasury operations

Motivation The Tokenomics Workstream is responsible for:

🟢 Core Tokenomics Responsibilities (Falls directly under tokenomics and should remain the primary focus) 💰 Treasury & Financial Stability Maintain $2M+ stablecoin reserves and extend the financial runway to 18 months Increase Protocol-Owned Liquidity (PoL) (Mainnet: $5M, Arbitrum: $150k) Diversify the treasury into BTC, ETH, and stablecoins 📈 Supporting DFC Revenue Optimization & Growth Support plans to increase monthly DAO revenue to $100k+ (Stretch Goal: $150k/month) Support plans to expand DeFi yield strategies to generate $30k+ per month (Stretch Goal: $50k/month) Maintain revenue dashboards tracking ShapeShift’s trade volumes, fee sources, and LP contributions. (Generate greater insights, descriptions, and comprehensive dashboards that tell a story.) ⚖️ Governance & Transparency Host 18-20+ DFC meetings per quarter (to align with past activity while allowing for time off) Publish karpatkey-esque financial reports (once DeFi actions start) Provide weekly Friday treasury updates Ensure proper execution of multisig transactions & training processes 📊 FOX Tokenomics & Market Positioning Own all FOX supply, emissions, and tokenomics data Launch 1-2 FOX utility experiments per quarter to improve use cases Increase FOX adoption and user engagement through incentive-based strategies 🛠 Automation & Smart Tokenomics Development Learn Solidity fundamentals & collaborate with engineering Deploy smart tokenomics contracts for automated treasury operations Treasury profits allocated to specific wallets with pre-set instructions and governance oversight 🟡 DAO-Wide Initiatives That Impact Tokenomics (Needs DAO collaboration but influences tokenomics strategy) ⚡ FOX Lending Pool Feasibility Pursue partnerships to enable FOX as collateral for DeFi lending markets Conduct risk modeling and feasibility analysis for a potential FOX-backed lending pool Pursue partnerships to enable FOX as collateral for DeFi lending markets.| Conduct risk modeling and feasibility analysis (ensuring alignment with FOX demand goals, but recognizing that execution & integrations will require external partnerships beyond tokenomics workstream’s scope.)| Clarify if lending pools will serve as a revenue source or solely as a utility driver.| (Execution & integrations will require external partnerships beyond tokenomics workstream’s scope)

📢 Marketing & Public Reporting of FOX Tokenomics Ensure FOX tokenomics messaging is accurate & aligned across external platforms (CMC, Coingecko, website) Provide data & insights for marketing campaigns (Execution owned by the DAO’s marketing team) 👥 Community & Governance Participation Continue to support community and governance participation efforts (e.g., Shapeshift Praise Hour, opening DFC meetings to the public and treating everyone with kindness and respect) Encourage FOX holder engagement through structured incentive programs (Execution owned by governance & community teams, not tokenomics) Abstract Under ProfMcCarthy’s leadership, the Tokenomics Workstream has:

📊 Treasury & Revenue Management Increased stablecoin reserves from <$300k to $2.6M Improved DAO fee models & DeFi integrations, growing monthly revenue from $5k-$10k (late 2023) to $40k-$70k (late 2024) Ensured consistent payroll amid market and volume volatility ⚖️ Governance & Transparency Hosted 80+ biweekly DFC meetings Increased tracking, specifics, and execution timing of multisig transactions Developed processes for multisig transactions to ensure that the DAO hasn’t lost any funds in the last year 📈 FOX Tokenomics & Data Management Took full ownership of FOX supply, emissions schedules, token burns, and incentive distributions Ensured public tokenomics data consistency across all DAO-facing platforms 📊 Dashboard Maintenance & Data Analytics Treasury, Revenue, LP, Swap Volume, and Market Positioning Dashboards Automated financial reporting for real-time decision-making Specifications Goals for 2025 📌 Treasury & Financial Health

Maintain $2M+ stablecoin reserves Extend financial runway to 18 months Grow Protocol-Owned Liquidity (PoL): Mainnet: $5M Arbitrum: $150k 📈 Revenue Optimization

Increase DAO revenue to $100k+/month (Stretch Goal: $150k/month) Expand DeFi strategies to generate at least $50k/month (Stretch Goal: $75k/month) ⚖️ Governance & Transparency

Host 18-20+ DFC meetings per quarter Provide weekly Friday treasury updates Publish > one social media thread related to tokenomics per week Publish major vote briefs & financial updates Coordinate with other WS leaders and community regarding important developments 🚀 FOX Token Utility & Adoption

Increase FOX holders by 20% (Stretch: 50%) Increase FOX holder activity on ShapeShift platform (Base: 10%, Stretch: 10%) Increase conversion of ShapeShift users into FOX holders (Base: 10%, Stretch: 15%) Launch 1-2 token utility experiments per quarter 🛠 Smart Tokenomics & Automation

Deploy smart contracts for treasury automation Learn Solidity & collaborate with engineering on tokenomics automation Budget & Compensation 📌 Total Budget: $198,000/year

Workstream Lead (ProfMcCarthy):

$15,500/month $7,000 in USDC $8,500 in FOX Additional Budget:

Rayyyk (Dashboard Maintenance): $10,000 (50% FOX, 50% USDC) Discretionary Budget: $5,000 USDC Voting Options 🟢 For: Approve the renewal 🔴 Against: Reject the renewal