After the failure of KIP-81: Strategic PNK Sale to Kleros Cooperative , I drew the following conclusions:
- There’s doubts in the Coop on how the DAO could make use of a Treasury.
- Although I will say, those doubts are unfounded since the DAO has very strong alignment enforcement: both token holder vote and price speculation from futarchy. If anything, Kleros DAO is very solid to ensure the funds are put to good use.
- There’s strong dissidence among token holders to mint PNK to the Coop without a strong deal.
- There’s resistance in the Coop to buy at a higher price. The Coop could choose to withdraw liquidity.
- The DAO could use a treasury to fund interesting alternative projects, not possible or worthwhile to build within the Coop.
- The Coop needs to be liquid in PNK.
To these effects, I propose again an idea I dropped in the KIP-81 discussion: KIP-81: Strategic PNK Sale to Kleros Cooperative - #30 by greenlucid
Idea
- Coop pays 100M PNK worth of ETH at market price to DAO.
- DAO sends 50M PNK to Coop.
- {Coop fulfills a few conditions} → DAO sends 50M to Coop.
Rationale
DAO gets a hedge. If Coop doesn’t deliver in the conditions, DAO has effectively sold 50M PNK at x2 market price, which pumps the price. But, if Coop delivers in the conditions, DAO sold 100M PNK at market price AND the conditions happened, (e.g. some deliverables) that are also bullish.
Coop gets the benefit of immediate liquidity, and gets a fair price IF they fulfill the conditions. Those can be conditions they were planning to fulfill anyway, but the DAO might not believe they can fulfill. Which would align the interests of the Coop with the interests of the DAO.
This is not a KIP yet, please come here and write your thoughts. I think this is the right path for both sides, what the conditions ought to be is unclear to me, but they should be things that ideally are already on Coop roadmap, are beneficial to the DAO and the ecosystem (which is part of the Coop’s public statuary mission anyway) and state some kind of limits, like time limits, etc.
Could be tied to usage, product creation or deprecation, value secured… please come in and share ideas.
Here’s a basket of ideas that could be setup as conditions, you can pick up or reject as conditions etc, obv all of these simultaneously are difficult to achieve:
- Kleros Court v2 is deployed
- Kleros Court v1 is deprecated and all disputes in there are delayed to Court v2
- An “in house” Optimistic Oracle is made
- Reality.eth is no longer in use by Kleros
- N Disputes created in Court v2
- NFT gated Dispute Kit is created
- $$$ Total Value Secured by Kleros
- Shutter fully integrated
- Private Evidence only visible to specific jurors/parties
Consider that the Coop members will likely be tough negotiators. Please don’t make it like KIP-81 where there was barely any user activity and feedback, if you’re a token holder or enthusiastic in Kleros you should come in and share your thoughts. If you wait until the vote and just reject, then the proposal needs to be redrafted and we all waste time as a result.
Whatever is chosen, another point is that it should not be difficult or controversial to determine if it happened or not. Should be an objective, clear metric. The goal of this proposal is NOT creating extra bureaucratic steps in order for the Coop to claim the remaining 50M PNK.