Summary:
THX Network BV is requesting funding from the THX DAO, effective as of 1st of March, for the remaining seven months of 2023 to support further growth of the protocol. The proposal is for the DAO to acquire funds by removing them from the liquidity pools, carefully designed not to use more than 25% of available treasury USDC, ETH or MATIC funds. The estimated available funding using this method is approximately €80.000.
Motivation:
Since launching in December 2021, the THX Network protocol has come a long way. It has a fully functioning gamified loyalty protocol and API operational, built by THX Network BV, and used by a number of launching customers. No community funds have been used to accomplish this. However, further growth of the protocol is necessary to sustain its success. THX Network BV has raised capital from both business angels and Techstars, and now is requesting a funding contribution from THX DAO to support its next steps.
The proposal seeks to provide the necessary funding to support the development, management, and sales/marketing of the protocol, enabling the protocol to further evolve which ultimately benefits the DAO and its members.
We believe that this proposed budget will enable THX Network BV to continue to develop the protocol and market its platform all while keeping the costs to the DAO under control. Most importantly, 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 2023 and beyond.
We look forward to your feedback and approval of the proposed budget. Thank you for your consideration.
Risks:
The proposal involves removing funds from liquidity pools, which will lower liquidity for the $THX token. However, this risk can be mitigated by narrowing Uniswap GAMMA managed ranges. Additionally, the proposal has been carefully designed not to use more than 25% of available treasury funds.
Specification:
The proposal involves acquiring funds by removing them from the liquidity pools, with an estimated available funding of $88,160 or approximately €79.870. The breakdown of funds to be removed is as follows:
| liquidity* | removal | |||
|---|---|---|---|---|
| Balancer (USDC 20/ THX 80 Polygon): | $653,793 | 25.00% | $32,690 | |
| Balancer (WMATIC 50/ THX 50 Polygon): | $72,721 | 23.50% | $8,545 | |
| Uniswap (USDC/THX Polygon): | $221,800 | 25.00% | $27,725 | |
| Uniswap (WETH/THX Ethereum): | $153,000 | 25.00% | $19,125 | |
| Total | $88,084 | €79,874 | ||
| * balances as of 5th of May '23 |
The monthly budget will be allocated to development (€6,380), sales and community management (€3,300), marketing + ads and/or PR (€1,750). Running for seven months, the remainder of 2023, this totals to €80,010.
Next steps:
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. Since this will be the first formal use of snapshot.org by the THX DAO, the environment is being set up in the meantime.
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 interface using Walletconnect.
