[DCP-8] - Budget for CEX listing-related costs

[vandynathan]

Authored by: DappRadar team

Summary:

As the DAO begins further increasing RADAR’s utility, it is important to increase RADAR’s liquidity, and market reach and to scale our operations – which can be supported through listings. In this DCP, we’re proposing a budget for related costs whenever a listing occurs.

Motivation:

Previously, Proposals have emphasized the importance of RADAR liquidity. We have recently seen the power of listing on strategic exchanges in increasing the number of RADAR holders and overall community sentiment.

Bringing more interested parties to our ecosystem is important for our Mission and Vision of becoming the World’s Dapp Store – as a percentage of these new token holders will convert into becoming contributors.

It is vital that the DAO has a clear budget moving forward so that it can quickly address listing needs. This budget would be used for any costs related to listings – namely legal and marketing, and other associated costs.

Abstract:

As the World’s Dapp Store, DappRadar DAO has an important role in ensuring the balance of our RADAR token and a long runway to afford our operational costs including contribute-to-earn, Bounties, more gamification, and open-source development.

In order to scale the Mission, it’s our responsibility to ensure good treasury practices and minimize our operational costs. That involves expanding our tokens market reach through strategic CEX exchanges, which will attract more token holders, users, partners, and contributors in support of our Mission and Vision.

The team has successfully executed this with multiple strategic partnerships, some of them being exchanges. Because of time constraints and the sensitivity of the information, we had to already allocate tokens for the recent listings: OKX and Gate.io and we are going to include them in this proposal retrospectively. However, we’d like to avoid doing this in the future and have a clearly allocated budget for any activities related to a listing.

We propose:

• 6,400,000 RADAR total over the next four months. At the current spot price that is ~$108,800 worth of RADAR
• This would be used for any listing-related expenses
• We would provide periodic updates on the budgeting

Benefits

• Good investment of the DAO’s treasury that can support extending the operational runway for RADAR and DAO’s mission
• Increasing our RADAR liquidity and opening the token to new markets
• Opens RADAR and the DAO to new strategic partnerships with exchanges, new users, and contributors
• Marketing activities in partnership with CEXes would allow us to reach their communities, thus increasing the awareness for DappRadar

Drawbacks

• Distributing a proportion of RADAR tokens that could be used for other initiatives

Vote

• FOR: Allocate 6,400,000 RADAR for CEX listing-related costs
• AGAINST: Do not allocate RADAR for CEX listing-related costs

[Resypto]

This is a great proposal. I’m all for well-planned responsible budgeting like this, and really appreciate that the DAO‘s input is requested. I have no doubt the team will use the allocations in the most efficient manner. It also makes sense to cover the latest listings’ costs retrospectively within this.

I just have two questions:

1. Do we have an estimate of what portion of this allocation will cover the already accrued costs, and what portion is dedicated for forward-looking plans.
2. Do we, or can we, have an idea as to whether the tokens will be transferred to provide liquidity or will be liquidated to cover costs in official currency?

I already voted for the proposal, and the answers to the above questions are unlikely to change my mind. But I do believe it would be healthier if the community has this information in order to prevent negative assumptions down the road like “must be the x partner dumping the tokens” “whale moving x million tokens to cex” “treasury wallet got hacked” etc.

[vandynathan]

Appreciate the response Resypto, really good questions

1. RIght now there’s still a level of confidentiality that we have to keep with the costs that we paid due to legal reasons. But we mentioned, we will give more updates in the future based on the total updates.

2. The best DAO Treasury practice is to exchange the tokens for a stablecoin to maintain the budget size – but it will depend on the costs associated with the listing (sometimes they might request RADAR) and our overall Treasury Policy. This is something that we will build out in the near future with the Head of Finance @bayar.

[bayar]

Hi Resypto!

Super good input and questions. How the budget will be used depends on the deal with the exchange: some of them want RADAR tokens to do campaigns and offer rewards to incentivize trading, whilst others want just stablecoin to cover their listing costs or to fund their own marketing activities around the listing. Overall, it’s good to have the budget allocated so that we’re able to discuss better deals with the exchanges.

Thanks for the vote and feedback!

[vandynathan]

Snapshot vote passed with 95% majority.

Thanks to all for getting involved - Around 143 votes this time - great turnout! We’ll keep the community in the loop with further developments.