The Future of The GRID -> PHONON Conversion Contract

Summary

This post is to officially gather consensus from DAO members regarding the future of the GRID-to-PHONON Conversion Contract, which can be found here: [Redeemer | Address 0xfdcc959b0aa82e288e4154cb1c770c6c4e958a91 | Etherscan]

With more than 12 months of opportunity for holders of the GRID Token to convert to PHONON at a 1:155 rate, the contract is to become open for modification after December 17, 2022. With informal conversations in Discord about the contract’s future, it is pertinent to gather consensus from DAO members, draft a Formal Proposal and ultimately vote on the contract’s future status and terms.

Level of Proposal - In no particular order.

  1. A Formal Proposal that permits the conversion contract to be updated, in yet to be determined and specific terms, at some point in the future, after 17 December, 2022. (e.g., Simply proposing that the contract will change some how, some way on some date after the 17th.)

  2. A Formal Proposal permitting the conversion contract to be updated, in no specific terms, but that defines a date & time by when the updates must be finalized and implemented (e.g., “The DAO will vote to approve/deny updating the conversion contract on xx/xx/xxxx day and time.”). This Level of Proposal comes with the caveat that (new) terms must be established and approved prior to the date set forth there within, as they are yet to be defined in the proposal. This gives the DAO 2 elements of structure in moving forward: 1) Additional time to discuss, determine and approve how it wishes to handle the conversion contract with 2) a hard deadline to work against when accomplishing the former.

  3. A Formal Proposal containing specific terms, date and time that determines the future of the conversion contract (i.e., to extend it, modify it, cancel it, or otherwise) on a specific date/time and includes new terms for the remaining PHONON allocated for conversion of GRID.

  4. Cut-and-Dry: E.g., “The contract will be terminated/extended on/to xx-xx-xxxx date at ##:## UTC. Unclaimed PHONON in the contract will be returned the DAO treasury in full/remain as is.”

  5. Other(s)

Additional Considerations

  • Selecting a date in early 2023 for modification of the contract for tax purposes.

  • The “All-or-none” mindset: If terminating the contact, is that a hard stop for conversions? Or, is there any leniency for conversion, if the DAO were to approached by a GRID holder afterwards (of full termination of the contract).

  • An off-ramp, or sunsetting of the GRID->PHONON funds, where the available amount is incrementally reallocated and the contract is available to GRID holders until $xx.xx amount remains. Where then, either it could remain indefinitely for conversion, until exhausted, or reallocated within the DAO treasury and conversions of GRID to PHONON cease to exist.

  • A communications plan to share this process (i.e., gathering consensus, submitting proposal(s) and holding votes) with current DAO members and targeting those who currently still hold GRID tokens.

  • Other(s)

Future Usage of Funds

Does the Formal Proposal also include terms on usage of the contract funds? Or, is it focused on the future of the conversion contract only and the future of the funds will be addressed later?

Next Steps

Gather DAO thoughts here and from Discord until the 18th of November, 2022 regarding the topic. With 30 days remaining, a formal proposal will be drafted and posted to Discourse for consideration and feedback/modification before being sent to Snapshot for an official vote no later than December 10, 2022.

3 Likes

Thanks for formalising the discussion, @Rush.

@phonongod posted an idea in today’s Pheverdreams.

Let it be that the contract remain open for redemption, but also that all dao PHONON expenditures are not paid out of the dao treasury, but rather out of the redemption contract. This means that on a monthly basis, the dao withdraws PHONON from the redemption contract to pay its bills. Over time, the redemption contract will approach zero.

1 Like

Awesome post. Thanks Rush!