---
type: decision
entity_type: decision_market
name: "Sanctum: Should Sanctum offer investors early unlocks of their CLOUD?"
domain: internet-finance
status: failed
parent_entity: "[[sanctum]]"
platform: "futardio"
proposer: "proPaC9tVZEsmgDtNhx15e7nSpoojtPD3H9h4GqSqB2"
proposal_url: "https://www.futard.io/proposal/C61vTUyxTq5SWwbrTFEyYeXpGQLKhRRvRrGsu6YUa6CX"
proposal_account: "C61vTUyxTq5SWwbrTFEyYeXpGQLKhRRvRrGsu6YUa6CX"
proposal_date: 2025-08-20
resolution_date: 2025-08-23
category: "treasury"
summary: "Proposal to allow investors immediate unlock of vested CLOUD by forfeiting 35% to Team Reserve"
tracked_by: rio
created: 2026-03-11
---

# Sanctum: Should Sanctum offer investors early unlocks of their CLOUD?

## Summary
This proposal would have empowered the Sanctum Team to offer investors immediate unlocks of their vesting CLOUD tokens in exchange for forfeiting 35% of their holdings to the Team Reserve. With 9% of token supply unlocking monthly over 24 months from investors, the mechanism could have increased the Team Reserve by up to 27 million CLOUD while reducing token overhang. The team committed not to redistribute forfeited tokens for at least 24 months.

## Market Data
- **Outcome:** Failed
- **Proposer:** proPaC9tVZEsmgDtNhx15e7nSpoojtPD3H9h4GqSqB2
- **Platform:** Futardio (MetaDAO Autocrat v0.3)
- **DAO Account:** GVmi7ngRAVsUHh8REhKDsB2yNftJTNRt5qMLHDDCizov
- **Completed:** 2025-08-23

## Significance
This proposal represents an alternative approach to the token vesting hedgeability problem: rather than allowing investors to maintain nominal lockups while hedging exposure through derivatives, it forces an explicit forfeit-for-liquidity trade-off. The 35% forfeit rate creates a real cost for early liquidity, making the alignment mechanism meaningful rather than cosmetic. The proposal's failure despite potential treasury benefits suggests futarchy markets face adoption friction even for economically rational proposals when they require sophisticated financial reasoning from participants.

## Relationship to KB
- [[sanctum]] - parent entity governance decision
- [[time-based-token-vesting-is-hedgeable-making-standard-lockups-meaningless-as-alignment-mechanisms-because-investors-can-short-sell-to-neutralize-lockup-exposure-while-appearing-locked]] - alternative mechanism to hedging
- [[futarchy-adoption-faces-friction-from-token-price-psychology-proposal-complexity-and-liquidity-requirements]] - demonstrates complexity friction
- [[MetaDAOs-futarchy-implementation-shows-limited-trading-volume-in-uncontested-decisions]] - low volume uncontested decision pattern
