GP-032: Move token mint operations to Threshold Foundation subsidiary

Vote Type

Token holder DAO Snapshot with a 5-day vote period.

DAO-elected Sponsors

@sap @JohnPackel @Will

Timeline

3 days for comment / discussion on this proposal.
Token holder DAO Snapshot with a 5-day vote period.

Background

Threshold DAO recently established a Cayman Islands Foundation Company, the Threshold Foundation, as authorized by the DAO in GP-025.

The purpose of the Threshold Foundation is to support Threshold DAO as a legal proxy, to sign legal agreements, and protect contributors from personal liability. It acts on behalf of Threshold DAO and its token holders.

The Threshold Foundation subsequently formed a subsidiary in the British Virgin Islands, Threshold BVI Ltd, wholly owner by the Threshold Foundation.

Since Threshold Foundation takes direction from token holders, this proposal seeks authorization to follow token minting best practices and house token mints in the BVI subsidiary.

Overall, the full functions to be housed in the new legal entities will be developed and likely evolve progressively.

This proposal is an attempt to move a basic function of the DAO, token minting, to the BVI subsidiary prior to the upcoming mint for staking rewards (see TIP-53).

Proposal

This proposal suggests to create a new multisig wallet for the BVI subsidiary, to house T token mints required by the stable yield model set out in TIP-003.

The new multisig will have the same signer set as the current Council multisig, with the addition of the Foundation Director, making it a 6-of-10 multisig.

Currently, new T for staking emissions are minted by a tokenholder vote and delivered to the Future Rewards contract (link) contract. The Future Rewards contract is used to top up the Claimable Rewards contract (link), which allows stakers to claim their rewards. Both contracts are currently controlled by the Threshold Council.

Control and management of these contracts will be transferred to the new BVI multisig, to demonstrate that the BVI subsidiary is responsible for the minting and distribution of token emissions.

The BVI multisig will have the bi-monthly responsibility to transfer T from the Future Rewards contract to the Claimable Rewards contract, for the total amount of tokens earned by stakers in that period.

Next Steps

  • New Ethereum Safe multisig to be created with the same signer set as the current Council, with the addition of the Foundation Director.
  • Future Rewards contract and Claimable Rewards contract ownership to be transferred from the Council to the new BVI multisig.
4 Likes

This proposal passed Snapshot with 416 million in favor and no votes against. We are currently operationalizing this.

https://snapshot.org/#/threshold.eth/proposal/0xeba09624d033bba124dafdd6d762c96e6367436d7787f8f4eaa3127e7f7fac57

2 Likes