ApeBond Bond $40,000 Fundraise Proposal

Summary:

The core team proposes to initiate a community fundraise campaign through ApeBond Bonds, targeting a raise of $40,000. This initiative, set to commence mid March 2024, aims to leverage ApeBond’s innovative bond offerings to enhance the community owned liquidity, diversify the treasury, and support the continued growth and development of the THX Network protocol. This approach aligns with our current market strategy and liquidity health, as detailed in the THX Network Trajectory Report issued on 12/02/2024 by ApeBond (linked below).

Motivation:

Following a comprehensive liquidity analysis and considering our current liquidity debt of $309,080, it is imperative for the THX community to adopt a sustainable fundraising and liquidity management strategy. ApeBond Bonds offer a pathway to achieve these objectives without compromising market stability or diluting existing token holders. By raising funds through ApeBond, the THX community can strategically enhance its liquidity and financial runway, ensuring long-term sustainability and growth.

Proposal Details:

  1. Fundraising Goal: Secure $40,000 through ApeBond Bonds, adhering to the conservative approach recommended in the Trajectory Report. This targeted amount is designed to optimize our liquidity without overextending our financial commitments.
  2. Bond Offerings:
  • Liquidity Bonds: Issue bonds to acquire liquidity in the form of LP tokens from users, offering THX tokens at a market-driven discount. This will enhance our liquidity depth and market presence. Offering (a part of) the new Quickswap pool LP tokens in this fashion is a perfect opportunity.
  • Reserve Bonds: Sell THX tokens at a discount to secure stablecoins and potentially other blue-chip assets, further diversifying our treasury and stabilizing our financial base.
  1. Execution Plan:
  • Discovery and Planning: Engage with the ApeBond team to finalize the bond structure, terms, and timeline.
  • Pre-Sale Preparation: Coordinate marketing efforts, finalize creative materials, and prepare for the bond sale launch.
  • Bond Sale Execution: Manage the marketing around the sale, ensuring smooth execution and optimal participation.
  • Post-Sale Analysis: Review the bond sale’s performance and plan future initiatives based on the outcomes and insights gained.

Risks and Mitigation:

Engaging in a bond sale introduces risks such as potential market impact and investor perception. However, these risks are mitigated by the conservative fundraising target, the strategic use of bond proceeds, and the transparent communication with our community and stakeholders.

Costs:

The bond sale involves an entry fee of 5% and a success fee of 5%, as per ApeBond’s fee structure. These costs are considered in our fundraising target and financial planning, ensuring that the net proceeds support our liquidity and development objectives effectively.

Next Steps:

This proposal will be open for community discussion and feedback for a minimum of three days. It then is subject to validation by the Governance Council. Following this period, we will proceed to a formal vote among THX community members on snapshot.org. This process is described in the Proposal Workflow.

Upon approval, the core team will coordinate with the ApeBond team to initiate the bond sale process, adhering to the outlined execution plan.

The responsibility for approving this proposal falls on the THX community and will be voted upon by token holders. Upon approval the executing is up to the multisig holders. All on-chain transactions are routine operations performed from the Gnosis safe.

We look forward to your feedback and support for this proposal.

1 Like

@governance-council in order to include this proposal in the voting round starting end of Friday, I would like to requesting this proposal to move towards vote on https://snapshot.org/#/thxprotocol.eth/ .

Let’s formalize the approval vote below.

  • YES, valid proposal criteria met
  • NO, valid proposal criteria not met
0 voters

Hey THX Network DAO!

Just dropping by to express our excitement about collaborating with you guys. We truly admire the steps you’re taking to ensure the sustainability of your protocol through initiatives like POL and ve8020. It’s commendable to see your commitment to real change for the betterment and longevity of your protocol.

Looking forward to kicking off this partnership and achieving great things together! Keep up the excellent work!

Regards, Boba (ApeBond)

1 Like

Hi @boba , thanks for stopping by! We have good news, the vote passed :white_check_mark:

THX Community Proposal: ApeBond Bond $40,000 Fundraise (snapshot.org)

Is worthwhile to mention that the vote was not uncontroversial, with 20% of the votes that didn’t abstain being against. Some lessons here;

  • $veTHX just came into existence, voting participation wasn’t the highest with about 25% of the stakers creating $veTHX and of that about 50% participating in voting. Making overall participation around 12,5% of all possible voters, as a community we need to work on that
  • this bond raise should be considered experimental and the results should be closely monitored

All that being said, I’m very much looking forward to the bond campaign and making this community grow and prosper, talk to you soon :vulcan_salute:

Locking this topic