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.
- Full report by ApeBond: THX Network Trajectory Report (notion.site)
- Latest funding proposal including liquidity overview: Funding proposal THX DAO → THX Network BV: Q1 2024 - Community Treasury - Governance Forum THX Network (note that the Uniswap pool on Ethereum has since then been withdrawn)
- Community Treasury contains approximately 10,324,000 THX tokens
Proposal Details:
- 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.
- 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.
- 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.
