[Primary Proposal Draft] Hot Wallet v2

What:

The initial “hot wallet” proposal will have exhausted its API3 tokens with the passing of the latest March-May 2024 1B20N24 proposal and transfer of the remaining amounts. We want to (re)propose the creation of a “hot wallet” that enables API3 to more flexibly allocate API3 token resources for strategic long-term partnerships with users and partners as well as unlocking agreements to attract and keep needed talent within API3.

Amount:

5M API3 tokens from the API3 Ecosystem Fund (the Primary Treasury).

Where:

The tokens go from the API3 Primary Treasury to a Gnosis Safe 3/5 multisig.

Who:

Burak Benligiray, Andre Ogle, Ugur Mersinlioglu, Ashar Shahid and Erich Dylus.

The members of this multisig are long-term contributors to API3 who among other things lead the current mission “1B20N24”. All signers have legal agreements with the API3 Foundation which require their adherence to its directives, including the terms of this proposal should it pass.

How:

The hot wallet multisig will allocate tokens towards high-value, high-impact strategic partnerships, contributor allocations and other activities that will have a positive impact on API3’s development. Partnership and contributor allocations will be subject to gradual unlocking schedules. The tokens in this multisig will not be used towards DAO governance and will not be staked until allocation. The multisig wallet address will be public to the whole DAO by the virtue of being included in the proposal.

Summary:

The DAO currently holds significant ecosystem reserves that are being diluted away with the staking target not being met. These resources were set aside to be utilised for the growth of API3 when suitable and in its best interest, as determined by voting on proposals such as this one. Throughout the years we have been building and we believe that we have reached the point where it is appropriate to utilise our full ‘arsenal’ in order to contribute heavily towards our success. The DAO Treasury currently holds 17.2M API3 tokens of which 5M API3 (29%) are requested in order to cement API3 as a leading oracle project in the space.

8 Likes

At first glance this is a large amount of tokens, but on second evaluation it is sensible- a primary proposal requires much effort (50% vote). This is indeed the time to make a strong push, with OEV Network. Perhaps some of the usage (I realise restraints) of the tokens may also be for treasury diversification as the contemporaneous secondary proposal’s USDC burn is high.

3 Likes

interested in seeing plans for the exact splits if possible, before voting for

Hey Midhav.
sorry for the late answer. Exact splits haven’t been determined yet, but e.g. some of the recent hires are expected to be paid out from this proposal.
Personally i think this will probably be relatively evenly distributed along a similar timeframe as the last hot wallet proposal.

1 Like