---
type: entity
entity_type: decision_market
name: "MetaDAO: Increase META Liquidity via Dutch Auction"
domain: internet-finance
status: passed
parent_entity: "[[metadao]]"
platform: "futardio"
proposer: "prdUTSLQs6EcwreBtZnG92RWaLxdCTivZvRXSVRdpmJ"
proposal_url: "https://www.futard.io/proposal/Dn638yPirR3e2UNNECpLNJApDhxsjhJTAv9uEd9LBVVT"
proposal_date: 2024-02-26
resolution_date: 2024-03-02
category: "treasury"
summary: "Sell 1,000 META through manual Dutch auction on OpenBook to acquire USDC for liquidity provision on Meteora"
tracked_by: rio
created: 2026-03-11
---

# MetaDAO: Increase META Liquidity via Dutch Auction

## Summary
Proposal 10 addressed MetaDAO's low liquidity and high volatility by selling 1,000 META through a manually executed Dutch auction on OpenBook, pairing the acquired USDC with META to provide liquidity on Meteora, and migrating all DAO liquidity from the 4% fee pool to the 1% fee pool for improved capital efficiency.

## Market Data
- **Outcome:** Passed
- **Proposer:** prdUTSLQs6EcwreBtZnG92RWaLxdCTivZvRXSVRdpmJ
- **Proposal Account:** Dn638yPirR3e2UNNECpLNJApDhxsjhJTAv9uEd9LBVVT
- **DAO Account:** 7J5yieabpMoiN3LrdfJnRjQiXHgi7f47UuMnyMyR78yy
- **Autocrat Version:** 0.1
- **Created:** 2024-02-26
- **Completed:** 2024-03-02

## Mechanism Design
The proposal used a manual Dutch auction rather than automated smart contracts to reduce execution risk. Auction mechanics:
- Starting price: 50% above spot
- Price reduction: 5% every 24 hours if ask remains >6% above spot
- Tranche size: 100 META per ask
- New tranche trigger: When filled, place new ask 10% above spot
- Total volume: 1,000 META

Execution through 3/5 Squads multisig (LMRVapqnn1LEwKaD8PzYEs4i37whTgeVS41qKqyn1wi) with members:
- Durden (91NjPFfJxQw2FRJvyuQUQsdh9mBGPeGPuNavt7nMLTQj)
- Ben H (Hu8qped4Cj7gQ3ChfZvZYrtgy2Ntr6YzfN7vwMZ2SWii)
- Nico (6kDGqrP4Wwqe5KBa9zTrgUFykVsv4YhZPDEX22kUsDMP)
- joebuild (XXXvLz1B89UtcTsg2hT3cL9qUJi5PqEEBTHg57MfNkZ)
- Dodecahedr0x (UuGEwN9aeh676ufphbavfssWVxH7BJCqacq1RYhco8e)

## Capital Allocation
- META to be sold: 1,000
- META for liquidity pairing: 2,000 (buffer for price appreciation)
- META for compensation: 5.45
- **Total META requested:** 3,005.45

Compensation determined through sealed-bid auction among multisig candidates:
- Ben H: 0 META
- Nico: 0 META
- joebuild: 0.2 META
- Dodecahedr0x: 0.25 META
- Proposal creator: 5 META (for market creation and execution)

## Liquidity Strategy
The proposal consolidated MetaDAO's liquidity management:
1. Multisig holding 4% fee pool LP tokens transfers to proposal multisig
2. USDC from META sales paired with META and added to 4% pool
3. After 1,000 META sold, all liquidity migrated to 1% fee pool
4. LP tokens sent to treasury as permanent liquidity

Rationale: "low volume and high volatility of META" created "little incentive to provide liquidity (low fees, high risk of impermanent loss)" while "strong demand for META" from oversubscribed raise (proposal 3) and notable buyers indicated favorable conditions for treasury sales.

## Significance
This proposal demonstrates futarchy-governed treasury management in practice: the DAO selling its own governance token to acquire stablecoins for liquidity provision, using market-based price discovery through Dutch auction mechanics, and optimizing fee tier allocation for capital efficiency. The sealed-bid auction for multisig compensation shows mechanism design extending to operational roles, not just capital allocation decisions.

## Relationship to KB
- [[metadao]] - treasury management decision
- [[meteora]] - liquidity venue
- [[MetaDAOs Autocrat program implements futarchy through conditional token markets where proposals create parallel pass and fail universes settled by time-weighted average price over a three-day window]] - operational example of Autocrat
- [[MetaDAO is the futarchy launchpad on Solana where projects raise capital through unruggable ICOs governed by conditional markets creating the first platform for ownership coins at scale]] - treasury operations context