DIP-6: Amendment 2

Headline: Reallocating unclaimed airdrop tokens to increase the availability of $DIMO

Author: The DIMO Foundation

Submitter(s): The DIMO Foundation [0xCED3c922200559128930180d3f0bfFd4d9f4F123]

Status: Deployed

Voting URL: Snapshot

Discussion Forum: Discord #🗳️governance forum

Vote Type: Level 3​

Abstract

This amendment increases the allocation of treasury resources that the DIMO Foundation can use to lend to market makers and onboard exchanges in order to improve the availability of the $DIMO token.

If passed, the DIMO Foundation will be authorized to loan an additional 15,000,000 $DIMO tokens to market makers (note that most frequently these loans are repaid by the market maker in cash or $DIMO within 12 months).

The DIMO Foundation will also add an additional $1,000,000 in USD equivalent assets to its annual budget for the purposes of increasing the availability of $DIMO on new exchanges.

Allocations	Previous	New	Net Change
Available to be used for market making	25,000,000 $DIMO	40,000,000 $DIMO	15,000,000 $DIMO
Annual DIMO Foundation Budget	$1,000,000 USD Equivalent	$2,000,000 USD Equivalent	$1,000,000 USD Equivalent

Motivation

DIMO has demonstrated impressive growth and excellent technological progress. Combining this momentum with shifting market conditions, new DIMO-compatible hardware launching soon, expansion into new geographic regions, and the beginnings of the DIMO app and hardware ecosystem currently taking shape, there is an opportunity for the project to make bold and decisive moves to accelerate development and growth.

With the conclusion of the airdrop, roughly 26 million $DIMO went unclaimed. This proposal would redeploy these tokens for the purposes of diversifying and expanding the availability of the $DIMO token on new exchanges. This helps ensure the availability of $DIMO for the ecosystem participants who need it, making DIMO more resilient and aiding in international expansion.

Specification

// If passed, this proposal would edit the following section within the DIP-6 Specification section:

Budget

The DIMO Foundation anticipates spending approximately $1,800,000 $800,000 in 2023. $200,000 of that would be on administrative overhead, including directors salaries, legal fees, insurance, KYC services, technology subscriptions, and more. Another $600,000 would be to compensate contributors who build and grow the DIMO protocol. Digital Infrastructure Inc. is under contract to provide services at $150 per hour and is expected to be the largest such contributor. Up to $1,000,000 will be used to increase the availability of $DIMO on exchanges.

To leave some extra buffer for the unexpected, this proposal gives the DIMO Foundation the authority to spend up to $2,000,000 $1,000,000 in USD equivalent in 2023 for relevant operations.

Treasury Initiatives

Additionally, this proposal authorizes the DIMO Foundation to sell up to 25,000,000 $DIMO tokens and to loan up to 40,000,000 25,000,000 $DIMO tokens to market makers.

Implementation

If passed, DIP-6 would be updated as specified above after the four day timelock concludes.

Copyright

Copyright and related rights waived via CC0

Citation

Please cite this document as:

The DIMO Foundation, " DIP-6: Amendment 2", August 2023. [Online serial]. Available: [https://github.com/DIMO-Network/DIP]

Changelog

July 6, 2024: disclaimer adjusted

Disclaimer

The contract addresses for $DIMO are 0x5fab9761d60419c9eeebe3915a8fa1ed7e8d2e1b on Ethereum and 0xE261D618a959aFfFd53168Cd07D12E37B26761db on Polygon. Please always confirm that you are interacting with these contract addresses and not those of a fraudulent imitator. This proposal may not be enacted if it violates Cayman Islands law. Please triple check that any communications are authentic as it’s common for scammers to try to trick you into sending them crypto or into revealing your private keys.

Certain statements in this document constitute forward-looking statements. The words “may,” “will,” “should,” “project,” “anticipate,” “believe,” “estimate,” “intend,” “expect,” “continue,” and similar expressions or the negatives thereof are generally intended to identify forward-looking statements. Such forward-looking statements, including the intended actions and performance objectives, involve known and unknown risks, uncertainties, and other important factors that could cause the actual results, performance, or achievements to differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and nothing in this document represents a promise of specific work to be completed in the future.