teleo-codex/decisions/internet-finance/metadao-otc-trade-pantera-capital.md

type	entity_type	name	domain	status	parent_entity	platform	proposer	proposal_url	proposal_date	resolution_date	category	summary	tracked_by	created
decision	decision_market	MetaDAO: Engage in $50,000 OTC Trade with Pantera Capital	internet-finance	failed	metadao	futardio	HfFi634cyurmVVDr9frwu4MjGLJzz9XbAJz981HdVaNz	https://v1.metadao.fi/metadao/trade/H59VHchVsy8UVLotZLs7YaFv2FqTH5HAeXc4Y48kxieY	2024-02-18	2024-02-23	fundraise	Pantera Capital proposed acquiring $50,000 USDC worth of META tokens through OTC trade with 20% immediate transfer and 80% vested over 12 months	rio	2026-03-11

MetaDAO: Engage in $50,000 OTC Trade with Pantera Capital

Summary

Pantera Capital proposed a $50,000 OTC purchase of META tokens from The Meta-DAO treasury, structured as 20% immediate transfer and 80% linear vesting over 12 months. The price per META was to be determined as the minimum of the average TWAP of pass/fail markets and $100. The proposal failed, indicating market rejection of the terms or strategic direction.

Market Data

• Outcome: Failed
• Proposer: HfFi634cyurmVVDr9frwu4MjGLJzz9XbAJz981HdVaNz
• Amount: $50,000 USDC
• Price Formula: min((twapPass + twapFail) / 2, 100)
• Vesting: 20% immediate, 80% linear over 12 months via Streamflow
• META Spot Price (2024-02-17): $96.93
• META Circulating Supply: 14,530

Significance

This proposal represents an early attempt at institutional capital entry into futarchy-governed DAOs through structured OTC deals. The failure is notable because it suggests either:

1. Market skepticism about the valuation terms (price cap at $100 vs spot of $96.93)
2. Concern about dilution impact on existing holders
3. Strategic disagreement with bringing institutional capital into governance

The proposal included sophisticated execution mechanics (multisig custody, TWAP-based pricing, Streamflow vesting) that became templates for later fundraising structures. The involvement of multiple community members (0xNallok, 7Layer, Proph3t) as multisig signers showed early governance scaffolding.

Relationship to KB

• metadao - failed fundraising proposal
• futarchy-based fundraising creates regulatory separation because there are no beneficial owners and investment decisions emerge from market forces not centralized control - tested institutional OTC structure
• 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 - used TWAP pricing mechanism

Full Proposal Text

Source: futard.io, tabled 2024-02-18

Drafted with support from: Pantera Capital, 0xNallok, 7Layer, and Proph3t

Overview

• Pantera Capital wishes to acquire {tbd} META (METADDFL6wWMWEoKTFJwcThTbUmtarRJZjRpzUvkxhr) from The Meta-DAO (ADCCEAbH8eixGj5t73vb4sKecSKo7ndgDSuWGvER4Loy)

• The price per META shall be determined upon passing of the proposal and the lesser of the average TWAP price of the pass / fail market and $100

   ppM = min((twapPass + twapFail) / 2, 100) 

• A total of $50,000 USDC (EPjFWdd5AufqSSqeM2qN1xzybapC8G4wEGGkZwyTDt1v) will be committed by Pantera Capital

• The Meta-DAO will transfer 20% of the final allocation of META to the Pantera wallet immediately and place 80% of the final allocation of META into a 12 month, linear vest Streamflow program

Rationale

Pantera views this investment as a strategic partnership and an opportunity to show support for The Meta-DAO, which is spearheading innovation in decentralized governance. Pantera has invested in the blockchain and crypto ecosystem heavily and looks forward to its long term promise. It views its acquisition of META as an opportunity to test futarchy's potential as an improved system for decentralized governance and provide meaningful feedback for accelerating its development and adoption across the crypto ecosystem.

There is a specific interest in Solana as a proving ground for innovative products and services for blockchain technology, and Pantera desires more direct exposure to the Solana ecosystem.

With respect to the investment, Pantera holds the perspective that The Meta-DAO may be an ideal community within Solana for soliciting additional deal flow. It also highlights support for innovation in the space of governance, support for Solana projects, and a belief that fundamentally, futarchy has a reasonable chance of success.

Execution

The proposal contains the instruction for a transfer 1,000 META into a multisignature wallet BtNPTBX1XkFCwazDJ6ZkK3hcUsomm1RPcfmtUrP6wd2K with a 5/7 threshold of which the following parties will be members:

• Pantera Capital (6S5LQhggSTjm6gGWrTBiQkQbz3F7JB5CtJZZLMZp2XNE)
• Pantera Capital (4kjRZzWWRZGBto2iKB6V7dYdWuMRtSFYbiUnE2VfppXw)
• 0xNallok (4LpE9Lxqb4jYYh8jA8oDhsGDKPNBNkcoXobbAJTa3pWw)
• MetaProph3t (65U66fcYuNfqN12vzateJhZ4bgDuxFWN9gMwraeQKByg)
• Dodecahedr0x (UuGEwN9aeh676ufphbavfssWVxH7BJCqacq1RYhco8e)
• Durden (91NjPFfJxQw2FRJvyuQUQsdh9mBGPeGPuNavt7nMLTQj)
• Blockchainfixesthis (HKcXZAkT4ec2VBzGNxazWhpV7BTk3frQpSufpaNoho3D)

The multisig members instructions are as follows:

• Accept receipt of META into the multisig as defined by on chain instruction
• Accept the full USDC amount of $50,000 from Pantera Capital into the multisig
• Determine and publish the price per META according to the definition above
• Confirmation from two parties within The Meta-DAO that the balances exist and are in full
• Take $50,000 / calculated per META and determine final allocation quantity of META
• Transfer 20% of the final allocation of META to Pantera's address FLzqFMQo2KmsenkMP4Y82kYVnKTJJfahTJUWUDSp2ZX5
• Configure a 12 month Streamflow vesting program with a linear vest
• Transfer 80% of the final allocation of META into the Streamflow program
• Return any remaining META to the DAO treasury

ROI to META

The proposal evaluates a net increase in value to META by bringing on a strategic partner such as Pantera which would boost visibility and afford some cash holdings. This proposal speculates a ~25% increase in META value due to the high profile of Pantera and their offering of strategic resources to the project.

Details
META Spot Price 2024-02-17 15:58 UTC	$96.93
META Circulating Supply 2024-02-17 15:58 UTC	14,530
Offer Price	${TBD}
Offer META	{TBD}
Offer USDC	$50,000
META Transfer to Circulation	{TBD} %
New META Circulating Supply	{TBD}

Here are the pre-money valuations at different prices:

• $50: $726,000
• $60: $871,800
• $70: $1,017,000
• $80: $1,162,400
• $90: $1,307,700
• $100: $1,453,000