Due to the imminent launch of CoWAMM pools, the Maxis reevaluated the various terms discussed in BIP-628. Due to multiple events and changing market conditions, the BAL available to the DAO at this time is not the same anymore as when BIP-628 was written. The requirements for the treasury token swap ($2.5m worth of BAL) are a (too) significant portion of the BAL runway of the DAO.
Following this insight, @karpatkey released a budgeting report for 2024-H2.
Of course, we do not want to slow down or impede the CoWAMM launch in any way. But given that BIP-628 states that both DAOs will initiate the treasury swap on launch, we would like to amend the agreed upon BIP-628 and remove this treasury token swap from it (for now).
Given the fact that we are so close to launch, we believe this is the quickest way to solve this without affecting the rest of the partnership. A more detailed alternative can always be suggested and considered at a later point.
This of course does not affect the other terms of the BIP in any way; all BAL incentives and USDC, WETH and BAL liquidity seeding will proceed as agreed upon as specified in [BIP-666].
TL;DR
Amend BIP-628 so that the paragraph “Incentive Alignments: Token Swap and Additional BAL Rewards” is removed from it.
For reference:
Incentive Alignments: Token Swap and Additional BAL Rewards
To align incentives, a milestone-contingent token swap is proposed:
- At launch, both DAOs will swap an equivalent of USD 500k worth of their native tokens and commit to holding them for at least two years from the date of this agreement passing a vote on Snapshot. Tokens can be used for strategic objectives but both DAOs will refrain from selling them during the aforementioned term.
- When TVL of CoWAMM/Balancer pools reaches USD 50M, each DAO will swap USD 1M worth of tokens, with the same two-year restriction.
- When TVL reaches USD 100M, another USD 1M token swap will occur, also locked for two years.