- Swap up to 10% of planned Year 1 BANK token supply from the Protocol’s Treasury allocation for ETH from strategic partners.
- For Float Protocol to flourish and solidify its position within DeFi it is important to onboard prominent members of DeFi into the Float ecosystem.
- This treasury diversification provides the Protocol with funds to pay for the necessary costs to allow Float Protocol to reach its full potential without additional price pressure on BANK.
- We believe this treasury diversification round will greatly benefit the Protocol going forward and look to confirm this decision via governance vote.
From the beginning, ever since our democratic launch, one of the main aims of the Protocol has been to get supporters behind us and with us for the long haul. In our democratic launch we only offered participation to those who were deemed active and engaged DeFi participants, with the whitelisting of addresses and caps on Phase 1 pools which allowed for broad distribution of BANK token, leading to over 4000 holders (BANKsters). So far we have distributed over 50% of the total BANK supply to the Community and continue to distribute more via the Phase 4 pools. Now we are looking to swap a portion of the Treasury allocation to aid with supporting the Protocol over the long term. We believe this is a necessary amount as it will help cover future costs such as audits, paying new team members, and fund Community incentives without leading to additional BANK price pressure.
The Abbey Road Hackers are here to stay and are building Float Protocol for the long term. To support us on our journey we are diversifying our treasury; ~10% of total BANK token supply from our treasury is to be sold to key DeFi participants and builders who we believe will be advocates, strategic partners and resilient supporters of the Protocol over the long term. This diversification of the treasury will aid with potential integrations further down the line and allow the Protocol to hire and incentivise Community members as we grow towards becoming the unit of account for the crypto economy.
We have been having conversations with prominent DeFi participants, builders and founders over the past few weeks, and as these conversations come to a close we are starting to firm up on commitments. For the sake of privacy at this stage, we won’t release names, but these will be made public before any swap.
The terms of the treasury diversification are as follows:
- 16,800 BANK tokens from the Treasury (~10% of total BANK token supply)
- Discount to market price in return for 1 year lock-up on BANK
- Inability to stake locked tokens
- Voting power in the Float Protocol DAO according to locked tokens
- On chain via a smart contract
It would be great to hear the Community’s thoughts on this before proceeding to a vote on snapshot. The Core Team is really excited by this move, and think the community will be equally excited to see those that are thinking on FLOAT and BANK long term.
This isn’t the only way to diversify the treasury, we could sell locked BANK via a one-sided Uniswap V3 liquidity provision, or via a Miso Style sale. This may get us a higher BANK price, but we think the “value-add” of these partners far outweigh any potential allocation.