teleo-codex/decisions/internet-finance/metadao-otc-trade-colosseum.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	last_updated
decision	decision_market	MetaDAO: Engage in $250,000 OTC Trade with Colosseum?	internet-finance	passed	metadao	metadao	Colosseum	https://v1.metadao.fi/metadao/trade/5qEyKCVyJZMFZSb3yxh6rQjqDYxASiLW7vFuuUTCYnb1	2024-03-19	2024-03-24	treasury	Proposal 13 — Colosseum $250K OTC. Dynamic TWAP pricing (market up to $850, void above $1,200). 20/80 vesting. Passed. Included commitment to sponsor DAO track at next Solana hackathon ($50-80K prize pool).	proposal_number proposal_account autocrat_version offer_amount meta_spot_price circulating_supply 13 5qEyKCVyJZMFZSb3yxh6rQjqDYxASiLW7vFuuUTCYnb1 0.1 $250,000 USDC $468.09 (2024-03-18) 17,421 META	metadao otc colosseum institutional hackathon passed	rio	2026-03-11	2026-03-24

MetaDAO: Engage in $250,000 OTC Trade with Colosseum?

Summary & Connections

Proposal 13 — Colosseum $250K OTC, passed. Dynamic TWAP pricing: market price up to $850, capped at $850 if TWAP $850-$1,200, void above $1,200. 20% immediate, 80% linear vest 12 months. META spot $468.09. Included commitment to sponsor DAO track at next Solana hackathon ($50-80K prize pool) at no cost.

Outcome: Passed (2024-03-24). First successful OTC after three consecutive failures.

Connections:

• Most sophisticated pricing structure of any MetaDAO OTC — dynamic TWAP with floor, cap, and void threshold
• Colosseum's value-add (hackathon pipeline → MetaDAO adoption) is qualitatively different from financial investors — ecosystem deal flow, not just capital
• Transition from 3 failed OTCs (Feb 2024) to this passed deal (Mar 2024) — META price went from $96 → $468, making dilution more palatable
• The market consistently rejects discount deals and accepts at-or-above-market deals

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Full Proposal Text

Overview

• Colosseum wishes to acquire {tbd} META (METADDFL6wWMWEoKTFJwcThTbUmtarRJZjRpzUvkxhr) from The MetaDAO Treasury (ADCCEAbH8eixGj5t73vb4sKecSKo7ndgDSuWGvER4Loy).
• If the proposal passes, the price per META will be the TWAP of the pass market if below $850. If this proposal is approved and the pass market TWAP surpasses $850 per META, but is below $1,200, then the acquisition price per META will be $850. If the pass market TWAP surpasses $1,200, then this proposal becomes void and the USDC in the multisig will be returned to Colosseum's wallet.
• A total of $250,000 USDC (EPjFWdd5AufqSSqeM2qN1xzybapC8G4wEGGkZwyTDt1v) will be committed by Colosseum.
• The MetaDAO will transfer 20% of the final allocation of META to Colosseum's wallet immediately and place 80% of the final allocation of META into a 12 month, linear vest Streamflow program.

Rationale

Colosseum runs Solana's hackathons, supports winning founders through a new accelerator program, and invests in their startups. Our mission is to bolster innovative improvements to technology, economics, and governance in crypto through all 3 pillars of our organization. In line with that mission, we believe MetaDAO is one of the most promising early experiments in crypto and we strongly believe we can help the project grow significantly due to our unique position in the Solana ecosystem.

In addition to the capital infusion provided by Colosseum, our primary value proposition is our ability to bring new entrepreneurs and cyber agents to MetaDAO over the long-term. Given that a majority of the VC-backed startups in the Solana ecosystem started in hackathons, we can utilize both our hackathons and accelerator program to funnel talented developers, founders, and ultimately revenue-generating startups to the DAO.

In practice, there are many ways Colosseum can promote MetaDAO and we want to collaborate with the DAO community around ongoing initiatives. To show our commitment towards future collaborations, we promise that if this proposal passes, the MetaDAO will be the sponsor of the DAO track in the next Solana hackathon after Renaissance, at no additional cost. The next DAO track prize pool will be between $50,000 - $80,000.

Execution

The proposal contains the instruction for a transfer {tbd} META into a Squads multisignature wallet [FhJHnsCGm9JDAe2JuEvqr67WE8mD2PiJMUsmCTD1fDPZ] with a 5/7 threshold of which the following parties will be members:

• Colosseum (REDACTED)
• Colosseum (REDACTED)
• MetaProph3t (65U66fcYuNfqN12vzateJhZ4bgDuxFWN9gMwraeQKByg)
• 0xNallok (4LpE9Lxqb4jYYh8jA8oDhsGDKPNBNkcoXobbAJTa3pWw)
• Cavemanloverboy (2EvcwLAHvXW71c8d1uEXTCbVZjzMpYUQL5h64PuYUi3T)
• Dean (3PKhzE9wuEkGPHHu2sNCvG86xNtDJduAcyBPXpE6cSNt)
• Durden (91NjPFfJxQw2FRJvyuQUQsdh9mBGPeGPuNavt7nMLTQj)

The multisig members instructions:

1. Accept receipt of META into the multisig as defined by onchain instruction
2. Accept the full USDC amount of $250,000 from Colosseum into the multisig
3. Determine and publish the price per META according to the definition above
4. Confirmation from two parties within The MetaDAO that the balances exist and are in full. Take $250,000 / calculated per META and determine final allocation quantity of META
5. Transfer 20% of the final allocation of META to Colosseum's address [REDACTED]
6. Configure a 12 month Streamflow vesting program with a linear vest
7. Transfer 80% of the final allocation of META into the Streamflow program
8. Return any remaining META to the DAO treasury

NOTE: The reason for transferring 2,060 META is due to the fact that there is only one transfer and by overallocating we have a wider price range to be able to execute the instructions above. For example if the price of TWAP for META is $250, the amount of META allocated for $250,000/$250 = 1,000 META. In this case 1,060 META would be returned to the treasury.

ROI to META

We won't speculate on what the exact ROI will be to META in the short to medium-term. However, if this proposal passes, we believe that our strategic partnership will increase the value of META significantly over the long-term due to Colosseum's unique ability to embed MetaDAO as a viable institution that can help future crypto founders grow their businesses.

Details
META Spot Price 2024-03-18 18:09 UTC	$468.09
META Circulating Supply 2024-03-18 18:09 UTC	17,421
Circulating supply could change depending on the current dutch auction
Offer Price per 1 META	Any market price up to $850 per 1 META
Offer USDC	$250,000

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Raw Data

• Proposal account: 5qEyKCVyJZMFZSb3yxh6rQjqDYxASiLW7vFuuUTCYnb1
• Proposal number: 13
• DAO account: 7J5yieabpMoiN3LrdfJnRjQiXHgi7f47UuMnyMyR78yy
• Proposer: pR13Aev6U2DQ3sQTWSZrFzevNqYnvq5TM9c1qTKLfm8
• Autocrat version: 0.1
• Completed: 2024-03-24

Relationship to KB

• metadao — parent entity
• colosseum — proposer entity, Solana hackathon organizer
• metadao-otc-trade-ben-hawkins — failed OTC from prior period
• metadao-otc-trade-pantera-capital — failed OTC from prior period