RRC-XX Proposal: Repurposing Legacy Wallet

arikthereal · June 18, 2024, 6:11pm

Proposal: Repurposing Legacy Wallet

Abstract

This proposal outlines the plan to reclaim unclaimed tokens from the legacy wallet and diversify the recovered funds for the growth and sustainability of the RARI ecosystem. A portion of the funds will be repurposed to fuel ecosystem growth activities, while a reserve will be maintained for future claims.

Rationale

The purpose of this proposal is to optimize the DAO’s financial resources and deploy a new ecosystem growth fund with focus on the RARI chain, in contrast to the fund already deployed for the Rarible Protocol (see RRC12). By reclaiming tokens and reallocating them to ecosystem fund activities, we aim to enhance the sustainability and growth of the DAO, through expansion of the RARI chain ecosystem across DeFi, Infrastructure, GameFi, SocialFi and other important sectors. Finally, the repurposing of funds will increase available capital to invest in high-impact strategic partnerships, such as grants to researchers, developers, strategic partners and others with the aim of increasing activity primarily on the RARI chain and elevating visibility of the utility and governance of RARI token.

Motivation

The motivation behind this proposal aligns with the core values of the RARI DAO community, emphasizing transparency, democratic decision-making, and prudent financial stewardship. Repurposing unclaimed tokens and diversifying the recovered funds into strategic investments ensures a robust foundation for future growth, while also safeguarding against market volatility and unforeseen circumstances. The RARI Foundation shall administer and manage these funds as part of the RARI Ecosystem Growth Fund.

Key Terms

Legacy Wallet: Refers to the wallet containing unclaimed tokens from past airdrops.
- Address: 0xFDfF6b56CcE39482032b27140252FF4F16432785
Token Reclamation: The process of reclaiming unclaimed tokens from the legacy wallet.
Ecosystem Growth Fund: Fund dedicated to supporting strategic partnerships, loans, grants, and other initiatives aimed at fostering sustainable development within the RARI ecosystem.

Specifications

Legacy wallet (0xFDfF6b56CcE39482032b27140252FF4F16432785) contains over 1.1M unclaimed RARI tokens in airdrops and early rewards. The funds are unused but can be repurposed, pending a public announcement and a grace period for the public to claim their tokens.

The remaining funds in the legacy wallet shall then be repurposed to help drive RARI ecosystem growth.
It’s prudent to keep a reserve for potential future claims and distribute remainder across grants, loans, and strategic partnerships .

Suggested distribution:

25% reserved for potenital future claim
75% reminder distributed across:
- Grants (20%)
- Loans (40%)
- Strategic Partnerships(15%)

The RARI Foundation will be asked to manage the Ecosystem Growth Fund, and to publish quarterly reports. After a period of 12 months, the RARI DAO may request unallocated funds to be returned to the DAO’s main treasury.

Steps to Implement

Upon approval of this proposal, recipients of RARI airdrop or early rewards programs who haven’t claimed their $RARI will have a 30 day grace period to claim their tokens. The claim period will start on the day of the execution. Notice of this claim window will be announced on RARI’s discord, X, Farcaster, newsletter, and website. Claiming can be done on rari.foundation/claim
After the grace period, the full amount of the recovered Legacy treasury will be sent to the RARI Foundation’s main wallet, eth:0x2a83d2891Ef3df6967E3C2e9b69cCc7aD029736B. These funds will be distributed amongst specific ecosystem growth Multisig wallets as established under RRC 12.
The Ecosystem Growth Fund will be repurposed approximately in the following areas: 20% grants, 40% strategic loans, 15% strategic partnerships. The remaining 25% shall be reserved for future claims, ensuring liquidity and responsiveness to community needs.
RARI Foundation will publish quarterly reports on the Ecosystem Growth Fund’s activities.

Timeline

Announce the token reclamation process, provide a 30-day window for reclaiming tokens which will initiate on the day the proposal is executed.
Provide regular progress updates to the RARI DAO community throughout the implementation phase of this proposal.
Repurpose the unclaimed funds at the 30 day mark upon execution.
Provide transparency and regular updates to the RARI DAO on how the ecosystem fund is reallocating the resources.

Costs

No costs are associated with this proposal.

Conclusion

This proposal represents a strategic opportunity for the community to optimize its financial resources and foster sustainable growth. By reclaiming idle, unclaimed tokens and reallocating them to ecosystem fund activities, this proposal will reflect the foundation’s commitment to responsible financial management, transparency, and community engagement.

Encourage the community to claim their tokens from the legacy wallet within 30 days of the proposal passing.
Allocate 75% of the remaining tokens to the Rari Ecosystem Fund managed by the Foundation.
Reserve 25% of the tokens for future claims, maintaining liquidity and responsiveness to community needs.

bitblondy · June 23, 2024, 9:02am

Thanks for the proposal. Do I understand correctly, that the remaining funds on this wallet were allocated for airdrops, but not used as much? In this regard, it’s reasonable to repurpose 75% of the remains and return it to the DAO treasury.

On the other hand, with the current discussion about reviving RARI chain, we could also discuss using the funds for their initial purpose and think about different reward options.

Firefly808 · June 23, 2024, 3:07pm

“Rari Rewards never expire”, that’s what I tell people when they ask about old RARI Rewards. They are always pleasantly surprised to see they had unclaimed rewards. Maybe we should remind people to check to see if they have unclaimed rewards.

forexus · June 23, 2024, 11:42pm

In rare cases people come ask about old $RARI rewards in the discord, maybe 1-2x a year If we do this its important to tell everyone to claim old rewards and set a deadline. Most likely the wallets with low amounts of $RARI won’t be claimed.
Treasury should reset before a new $RARI rewards season will start.

WinVerse · June 24, 2024, 11:39am

Thank you for putting this up Arik! It is good we are having this conversation now.

I am in support of repurposing the legacy wallet but would love to touch on the suggested distribution a bit.

Is it possible we give a three-month ultimatum (could be extended to EOY) for people to claim funds then totally deprecate that channel by allocating all the funds to Ecosystem growth?

I am saying this because these funds have been sitting on this wallet for quite a while and the suggested percentage to reserve could come back to hurt us in a situation where >25% is requested.

addie · June 24, 2024, 4:30pm

gm @arikthereal - gentle reminder to please update the proposal title from RRC-26 to RRC-XX until this is ready for Tally.

RRC-26 Tokenomics Working Group Proposal has already been posted to Tally, and there are multiple outstanding RRC-XX’s on forum that the DAO has been assigning numbers to once the forum draft is ready to move to Tally.

Feel free to drop any questions here. Thank you!

arikthereal · July 10, 2024, 11:38am

gmgm, @bitblondy @Firefly808 @forexus @WinVerse @addie thank you for the feedback above.

@bitblondy

Fund Allocation: The funds in this wallet were allocated for airdrops, but they were never claimed. We want to ensure that delegates reclaim as much as the funds as possible, so we are providing a long timeline for them to claim them. Once that is done, we will still allocate a % for future claims. Our objective is to make sure all delegates that have an airdrop claim will always have a chance to claim them.

For repurposing the funds: The Ecosystem Growth fund is designed to have the biggest impact on the RARI chain. Through strategic partnerships, we feel confident this will provide the highest ROI of these funds.

@Firefly808 totally! This is our objective, so no one loses any rewards that belong to them. Once this proposal is approved on Tally, we will broadcast to all of our channels to get the word out.

@forexus We will also broadcast this proposal to our discord community call to remind people to claim. We will have a deadline set on the proposal, but in the chance they don’t, there is a % carved that will indefinitely sit in the treasury for them to claim at any time in the future.

@WinVerse Yes, we can adjust the ultimatum on when to claim the tokens. EOY might be too long because we are planning on investing the remaining of the funds in the ecosystem fund. On >25% of the tokens being claimed, our estimate is that this its rare. We want to push marketing heavily to get as many folks to claim during the timeline period.

@addie unfortunately, I am not able to change the proposal to RRC-XX, but will keep it mind for any next submission.

addie · July 10, 2024, 9:45pm

Thanks @arikthereal! I made the edit from RRC-26 to RRC-XX on this forum post. Then when it moves to Tally, please confirm the current proposal number prior to submission. At the moment, it would be RRC-27 as RRC-26 Tokenomics Working Group Proposal passed recently on Tally. However, this might change if another proposal draft makes it to Tally before this proposal draft does.

bitblondy · July 14, 2024, 8:54am

Thanks for the clarification, I support that there will remain a share available for long-term claiming (from a reliability perspective). Returning to the Ecosystem Growth fund makes sense as well, was just pointing out we could think about other incentive mechanisms in general.

lionmsee · July 16, 2024, 5:19pm

I support this proposal, and will vote for.

The 30 day period should hopefully be enough for people to reclaim, but it’s a good way to utilize the idle tokens for other Rari ecosystem expansion activities.

WinVerse · July 19, 2024, 8:02am

I am voting in favor of this proposal.

Totally understand the rationale behind it and Arik has answered my questions regarding claim ultimatum.