Introduction
Greetings to the TRIBE.
As I hope many of you have seen, we released the VOLT Protocol whitepaper last week and hosted a Twitter space introducing the protocol in its new form.
We made it this far thanks to support from the communities at Rari and Fei, who became one TRIBE along the way.
This proposal is intended to formalize our ongoing cooperation and alignment, and give the VOLT DAO some additional help getting off the ground.
Proposal Summary
- Volt Protocol gives TRIBE DAO 6% of VCON supply in exchange for support rendered for launch
- Volt Protocol offers TRIBE DAO up to 24% of the VCON supply in a token swap of 50/50 FEI/TRIBE
- TRIBE DAO provides $10m FEI liquidity backstop for Volt Protocol as discussed in our whitepaper
Swap Details
We will give 6% of the VCON governance token supply directly to the TRIBE DAO in consideration of the support we’ve received so far. This is $1.2m according to our seed round valuation.
In addition, we will offer up to 24% of the VCON supply to the TRIBE DAO at our seed round valuation, 240m VCON tokens valued at $0.02 each for a total of $4.8m. If the TRIBE DAO does not wish to swap for the full amount, that’s fine with us, though we are eager to establish long term alignment.
In exchange for these VCON tokens, we request a 50/50 split of FEI and TRIBE. We will price TRIBE at $0.6600 based on the Chainlink volume weighted average price for block range [14129505, 14310470], the month concluding with the announcement of the VOLT whitepaper on Twitter at 11:12PM PST on March 2, 2022. On this basis, the full swap would be 240m VCON tokens for 2.4m FEI and 3.63m TRIBE.
The VCON DAO will add this FEI to our peg stability module to increase the size of the system’s surplus, meaning it will be deployed on Fuse for lending by the VCON DAO and also available for VOLT-FEI swaps.
The VCON DAO will hold this TRIBE as xTRIBE and use it to promote VOLT adoption on Fuse. Given the possibility of TRIBE incentives on Fuse, the VCON DAO would naturally hope to increase its stake in TRIBE over time through being one of the dominant lenders on Fuse
Launch Assistance Details
As discussed in our whitepaper, VOLT will seek the support of TRIBE DAO at our launch with a FEI liquidity backstop controlled by TRIBE governance. This is treated separately from the token swap because Fei Protocol will retain full control of the funds it uses in this process.
We request that Fei Protocol deposit 10m FEI into the VOLT peg stability module (PSM) to mint VOLT at launch and market make (provide liquidity) with the issued VOLT. Protocol owned VOLT will provide a buffer in VOLT redemptions and make it easier for users to count on a stable price before we launch liquidity incentives.
Conclusion
Our motive in distributing the largest share of the VCON governance system to TRIBE is twofold --first, to align with a powerful builder-centric DAO, without whose help I would not have been able to arrive at the current design for VOLT let alone implement it. Second, to establish a decentralized governance base with skin in the game from day one.
