THX Network BV is requesting funding from the THX DAO, effective as of 1st of January, for the first quarter of 2024 to support further growth of the protocol. The proposal is for the DAO to acquire funds by removing them from the liquidity pools that become obsolete by the voted escrow tokenomics update. The estimated available funding using this method is approximately €29.200.
Over the past year, using capital raised from Techstars, business angels and THX DAO. THX Network BV has made significant strides in not only developing a robust and user-friendly protocol but also bringing it to market. THX Network BV has successfully pivoted its go-to-market strategy to the gaming sector and today we’re continuously working on improving our platform to meet the evolving needs of our users and partners.
The progress has been shared in recurring newsletters with a focus on active domains and monthly active users. Currently our ecosystem has over 25 active domains and is approaching a thousand active monthly users (MAU). For more information subscribe to the newsletter updates using the form on our website.
Now that early product market fit has been found, the focus of the first quarter of 2024 is on strengthening the proposition not only for end-users such as games and game studio’s but also for gamers and other stakeholders such as token holders. There are three main areas of focus:
- Tokenomics: by updating to a voted escrow model with the launch of veTHX, we align incentives between long-term holders and users of the protocol. This will play a significant role in the protocol’s future business model and governance. For this update we are working with the 8020 Launchpad Initiative executed by Protofire and funded by Balancer Grants. An early preview of the staking interface is available for feedback.
- Go-to-Market: by offering a THX tokens claim, a marketing tactic similar to an airdrop, to selected gaming companies and organizations and their followers we’re accelerating our reach to potential customers and end-users.
- Legal: by ensuring our compliance with the Markets in Crypto-Assets (MiCA) regulation, including updating the utility and legal status of our tokens, we make sure our protocol can continue operations in a responsible way. THX Network BV will be working on this update together with De Roos Advocaten headquartered in Amsterdam, The Netherlands.
This proposal seeks to provide partial funding to support the development, management, and sales/marketing of the protocol, enabling the protocol to grow in usage which ultimately benefits the DAO and its members. In order to not strain the DAOs resources, the funding request is kept to a minimal level by primarily utilizing funds from liquidity pools that will become obsolete under the veTHX tokenomics model.
Similar to earlier this year, the sustained support gives a strong signal to future partners and investors that both the THX Network protocol and company are well-positioned to achieve their strategic goals in 2024 and beyond. Next to this funding THX Network BV will continue to raise capital from other sources.
We look forward to your feedback and approval of the proposed budget. Thank you for your consideration.
The proposal involves removing funds from liquidity pools, which will lower liquidity for the $THX token. However, this risk is mitigated by primarily using the pool on Balancer that will become obsolete with the transition to the voted escrow token model which relies on 80/20 Balancer pool. For now, the Uniswap pools remain intact. Providing arbitrage opportunities and also increasing the accessibility of the THX token.
The proposal involves acquiring funds by removing them from the liquidity pools, with an estimated available funding of $31,027 or approximately €29.200.
The breakdown of funds to be removed is as follows:
The monthly budget will be allocated to development (€5,120), sales and community management (€3,000), marketing + ads and/or PR (€1,750) plus a one-time legal budget (€2000). Running for three months, this totals to €30,860.
First, this proposal will be open for discussion for a minimum of three days. Next, it can be signaled to move to a vote. It then is subject to validation by the Governance Council and when approved will proceed to be posted on snapshot.org for voting. This process is described in the Proposal Workflow.
The responsibility for approving this proposal falls on the THX DAO 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 using either the Balancer app, or the GAMMA smart contracts and interface using Walletconnect.