DIP-6: Amendment 1

Headline: Reallocating tokens

Author: The DIMO Foundation

Submitter(s): The DIMO Foundation [0xCED3c922200559128930180d3f0bfFd4d9f4F123]

Status: Deployed

Voting URL: Snapshot

Discussion Forum: Discord #🗳️governance forum

Vote Type: Level 3

Abstract

This proposal would repurpose tokens set aside for market making to instead be authorized for direct sale and other initiatives.

Specifically, DIP-6 previously authorized the DIMO Foundation to sell 5,000,000 $DIMO tokens to bring in resources to fund operations, as well as the ability to loan 50,000,000 $DIMO for market making activity.

This proposal would redraw these allocations. If passed, the DIMO Foundation will be authorized to sell an additional 20,000,000 $DIMO to investors and strategic partners (25,000,000 total). Also, the authorization to loan tokens to market makers is cut in half to 25,000,000 $DIMO.

The 5,000,000 $DIMO left over are unallocated and returned the treasury.

	Previous Allocation	New Allocation
Available to be sold	5,000,000	25,000,000
Available to be used for market making	50,000,000	25,000,000
Returned back to the treasury		5,000,000

Motivation

The DIMO Foundation suggests that 25,000,000 $DIMO is sufficient to facilitate market making activities and that there will likely be opportunities to continue to sell meaningful amounts of $DIMO to investors and strategic partners at favorable prices to further diversify the treasury and ensure future funding for development.

Specification

// If passed, this proposal would edit the following section within the DIP-6 Specification section:

Treasury Initiatives

Additionally, this proposal authorizes the DIMO Foundation to sell up to 25,000,000 5,000,000 $DIMO tokens and to loan up to 25,000,000 50,000,000 $DIMO tokens to market makers.

The DIMO Foundation may not sell this specific pool of tokens below $0.30. A minimum one-year lockup is required on token sales unless there is a bona fide expectation that the purchaser will use a majority of those tokens themselves to use DIMO, such as to produce devices or operate a node.

The Foundation will make its best effort to balance regulatory, financial, and strategic considerations to maximize the long-term health of the DIMO protocol.

These tokens would come from the unallocated treasury pool of 250,000,000 $DIMO. This may be amended or deals on other terms (e.g., below $0.30) may be authorized by any valid governance vote.

Implementation

If passed, DIP-6 would be updated as specified above after the four day timelock concludes and only once DIP-1: Amendment 1 is enacted.

Copyright

Copyright and related rights waived via CC0

Citation

Please cite this document as:

The DIMO Foundation, " DIP 6 Amendment 1", February 2023. [Online serial]. Available: [https://github.com/DIMO-Network/DIP]

Changelog

Feb 27, 2023: updated to include additional requirements on sales ($0.30 minimum and lockup).

Mar 3, 2023: adjusted the date that the proposal is in review from March 3 to March 15. This is to create more time discussion and hopefully the introduction of a fourth proposal related to marketplace issuance that can be voted alongside the three that are currently in review.

Mar 9, 2023: added clarification that these conditions may be amended. This was already the case, but extra specificity may reduce confusion.

Mar 13, 2023: extended the review period from March 15 to March 22. This is to continue to provide more time for discussion and hopefully the introduction of a fourth proposal related to marketplace issuance that can be voted alongside the three that are currently in review.

Mar 14, 2023: added clarifying language that the restriction on price and lockup pertains to this pool of authorized tokens specifically.

Disclaimer

The contract addresses for $DIMO are 0x5fab9761d60419c9eeebe3915a8fa1ed7e8d2e1b on Ethereum and 0xE261D618a959aFfFd53168Cd07D12E37B26761db on Polygon. Please always confirm that you are interacting with these contract addresses and not those of a fraudulent imitator. This proposal may not be enacted if it violates Cayman Islands law. Please triple check that any communications are authentic as it’s common for scammers to try to trick you into sending them crypto or into revealing your private keys.