teleo-codex/decisions/internet-finance/metadao-sell-2m-meta-at-market-or-premium.md

type	entity_type	name	domain	status	parent_entity	platform	proposer	proposal_url	proposal_date	resolution_date	category	summary	key_metrics	tags	tracked_by	created
decision	decision_market	MetaDAO: Sell up to 2M META at market price or premium?	internet-finance	passed	metadao	metadao	Proph3t	https://www.metadao.fi/projects/metadao/proposal/GfJhLniJENRzYTrYA9x75JaMc3DcEvoLKijtynx3yRSQ	2025-10-15	2025-10-18	fundraise	META-033 — Sell up to 2M newly minted META at market or premium. Proph3t executes with 30 days, unsold burned. Floor: max(24hr TWAP, $4.80). Max proceeds $10M. Up to $400K/day ATM sales. Response to failed DBA/Variant $6M OTC.	proposal_number proposal_account autocrat_version max_meta_minted max_proceeds price_floor atm_daily_limit volume trades pass_price fail_price 33 GfJhLniJENRzYTrYA9x75JaMc3DcEvoLKijtynx3yRSQ 0.5 2,000,000 META $10,000,000 $4.80 (~$100M market cap) $400,000 $1,100,000 4400 $6.25 $5.92	metadao fundraise otc market-sale passed	rio	2026-03-24

MetaDAO: Sell up to 2M META at market price or premium?

Summary & Connections

META-033 — the fundraise that worked after the DBA/Variant deal failed. Sell up to 2M newly minted META at market price or premium. Proph3t executes OTC sales with 30-day window. All USDC → treasury. Unsold META burned. Floor price: max(24hr TWAP, $4.80 = ~$100M mcap). Up to $400K/day in ATM (open market) sales, capped at $2M total ATM. Max total proceeds: $10M. All sales publicly broadcast within 24 hours. $1.1M volume, 4.4K trades. Passed.

Outcome: Passed (~Oct 2025).

Connections:

• Direct response to metadao-vc-discount-rejection (META-032): "A previous proposal by DBA and Variant to OTC $6,000,000 of META failed, with the main feedback being that offering OTCs at a large discount is -EV for MetaDAO." The market rejected the discount deal and approved the at-market deal — consistent pattern.
• "I would have ultimate discretion over any lockup and/or vesting terms" — Proph3t retained flexibility, unlike the rigid structures of earlier OTC deals. The market trusted the founder to negotiate case-by-case.
• The $4.80 floor ($100M mcap) is a hard line: even if market crashes, no dilution below $100M. This protects existing holders against downside while allowing upside capture.
• "All sales would be publicly broadcast within 24 hours" — transparency commitment. Every counterparty, size, and price disclosed. This is the open research model applied to capital formation.
• This raise funded the Q4 2025 expansion that produced $2.51M in fee revenue — the capital was deployed effectively.

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Full Proposal Text

Author: Proph3t

A previous proposal by DBA and Variant to OTC $6,000,000 of META failed, with the main feedback being that offering OTCs at a large discount is -EV for MetaDAO.

We still need to raise money, and we've seen some demand from funds since this proposal, so I'm proposing that I (Proph3t) sell up to 2,000,000 META on behalf of MetaDAO at the market price or at a premium.

Execution

The 2,000,000 META would be newly-minted.

I would have 30 days to sell this META. All USDC from sales would be deposited back into MetaDAO's treasury. Any unsold META would be burned.

I would source OTC counterparties for sales.

All sales would be publicly broadcast within 24 hours, including the counterparty, the size, and the price of the sale.

I would also have the option to sell up to $400,000 per day of META in ATM sales (into the open market, either with market or limit orders), up to a total of $2,000,000.

The maximum amount of total proceeds would be $10,000,000.

Pricing

The minimum price of these OTCs would be the higher of:

• the market price, calculated as a 24-hour TWAP at the time of the agreement
• a price of $4.80, equivalent to a ~$100M market capitalization

That is, even if the market price dips below $100M, no OTC sales could occur below $100M. We may also execute at a price above these terms if there is sufficient demand.

Lockups / vesting

I would have ultimate discretion over any lockup and/or vesting terms.

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Market Data

Metric	Value
Volume	$1,100,000
Trades	4,400
Pass Price	$6.25
Fail Price	$5.92

Raw Data

• Proposal account: GfJhLniJENRzYTrYA9x75JaMc3DcEvoLKijtynx3yRSQ
• Proposal number: META-033 (onchain #3)
• DAO account: Bc3pKPnSbSX8W2hTXbsFsybh1GeRtu3Qqpfu9ZLxg6Km
• Proposer: proPaC9tVZEsmgDtNhx15e7nSpoojtPD3H9h4GqSqB2
• Autocrat version: 0.5

Relationship to KB

• metadao — parent entity, capital raise
• metadao-vc-discount-rejection — the failed deal this replaces
• metadao-otc-trade-theia-2 — Theia was likely one of the OTC counterparties (they had accumulated position)