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teleo-codex/entities/internet-finance/metadao-increase-meta-liquidity-dutch-auction.md
Teleo Agents bfc96cd54e rio: extract from 2024-02-26-futardio-proposal-increase-meta-liquidity-via-a-dutch-auction.md 
- Source: inbox/archive/2024-02-26-futardio-proposal-increase-meta-liquidity-via-a-dutch-auction.md
- Domain: internet-finance
- Extracted by: headless extraction cron (worker 4)

Pentagon-Agent: Rio <HEADLESS>
2026-03-11 15:48:27 +00:00

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

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