Umami DAO Proposal #1: Instatement of Core Contributors and Tokenomics Solidification
Below is a draft proposal by Umami community member Afirebrand, better known as CryptoCondom on Twitter. Below they detail a way for Umami to move forward as a DAO organization instating the Umami team (Minus ex-CEO) as Core Contributors. As a team we fully support this proposal and are willing to take the reigns of Umami if the community wishes.
To summarize, based on my understanding of recent events, the former Umami Labs CEO Alex O’Donnell (DeFiAlpha) attempted to supersede the Umami DAO treasury by transferring it to under his sole control. The Umami team refused to allow the treasury to be rugged and resigned en masse from Umami Labs.
As such, at this time, the Umami DAO is faced with an existential crisis. It must either evolve to survive or it must dissolve.
The current treasury value, irrespective of POL, of the Umami DAO treasury is $4.134 million. A link to the treasury Zapper account is here: https://zapper.xyz/fr/daos/umami-finance-dao
37828 held in vesting contracts
170,015 held by the treasury
102,513 permanently locked in an old Ohm contract effectively removing these from max supply
Only the tokens included in the vesting contracts and circulation should be considered for RFV. As such, as of the time this article is written on February 9th, 2023, Umami DAO RFV = 4.134m / 727471 = $5.68 UMAMI.
The team has been working very hard on a Delta minimized product for GLP which is composed of 5 separate vaults that separate out and individually hedge the GLP volatile assets. This product is already live on Testnet and has been working as expected with high yield. Launch to the public is imminent within the next 30 days pending a guarded launch. This product stands to bring a significant amount of revenue and attention to the Umami DAO which is likely to result in token appreciation and, ultimately increased value of the RFV.
Given the current DAO predicament, I would like to propose the following:
- The community vote YES to hiring the former Umami Labs team as (now) Umami DAO contractors. All salaries and vesting contracts will remain the same. To be clear, the hires will include ALL former labs team members except Lex O’Donnell. The former Umami CLO, Alex G, will stay on as an unpaid advisor to the team, and will be available for contract work on an as needed basis.
- In exchange for being hired, the team will continue with their previous mandates. As before, the rights to the code will remain with the DAO, and revenue from the Umami vaults will be trustlessly distributed; shared between marinators as staking revenue and the DAO owned treasury at the previously agreed upon rates (50/50 split)
- Treasury revenue distribution will be reinstated to stakers at the previous rate of 50% revenue
- The Umami Labs agreement with the Umami DAO will be dissolved in full.
I would like to encourage the community to do a reassessment of the DAO revenues and long term value proposition at 6 months time after vault launch. If the repercussions of recent events result in an irreparable loss of reputation that prevents vault growth and product line revenue, the DAO should consider dissolution to allow UMAMI investors to recoup costs.
The DAO will have the option to vote this proposal through or choose to dissolve the treasury at RFV via a new proposal. Vote will be happening in the next couple of days so stay tuned!