VitaDAO Leads: Vincent Weisser#9975, theobtl#5976, catthu#2929
Co-authors from Bankless: cryptodad🏴#5814, jengajojo.eth🏴#5896
Summary
- This proposal is to initiate a token swap with BanklessDAO for its governance token $BANK.
- $25,000 worth of VITA will be swapped for $25,000 of BANK taken at the 30-day moving average at the end of the votes on both sides.
- VitaDAO would benefit from treasury diversification and awareness within the broader BanklessDAO community.
Motivation
VitaDAO and BanklessDAO (referred to as “bDAO”) are seeking to build relationships with other DAOs and Web3 organizations to 1) diversify its treasury holdings to help the DAO in the long term operational viability; 2) explore the tools and services developed by Bankless DAO; 3) raise awareness of VitaDAO in different communities such as BanklessDAO. (see BanklessDAO proposal). You can see more of BanklessDAOs projects listed here.
BanklessDAO is looking to partner with VitaDAO via token swap to intensify the collaboration and create mutual awareness between the two organizations.
Background
A token swap with BanklessDAO will not only diversify VitaDAOs treasury but also help initiate the partnership with BanklessDAO, which can provide further opportunities for promoting VitaDAO and explore bDAO’s products, e.g. DAO dash and DEGEN bot.
About BanklessDAO
A decentralized autonomous organization that acts as a steward of the Bankless Movement progressing the world towards a future of greater freedom. Read more on their website and in their notion.
Key BanklessDAO metrics:
- 26,000+ Active Discord members
- ~5000 Token Holders
- ~$36m Market cap
Mission and Values Alignment
The Bankless meme envisions a world where people use web3/crypto tools to navigate the coordination challenges of the 21st Century. Funding longevity research is currently masked with red tape. If we are able to use web3/crypto tools to unlock new drugs and techniques to reduce the healthcare costs of society as a whole, it gives added validation for using web3/crypto tools to coordinate actions of apes around the world with this Bankless technology and encourages more people to adopt the Bankless lifestyle.
Specifications
- USD 25,000 in notional value, swapped in VITA for BANK.
- Token prices will be taken at the 30-day moving average at the end of the votes on both sides.
- Example: As of 3/31/2022, the 30-day moving average price is $0.03092 for BANK and $1.9730 for VITA. The swap would be 808,538 BANK for 12,671 VITA.
Financial Implication
- VitaDAO will swap USD 25,000 in notional value of VITA for BANK.
Risks
As of the date this proposal is created, the only identified risk is investment risk.
- The BANK token could become worthless if BanklessDAO fails to create and retain value.
- The maximum loss would be $25,000.
Stipulations
- Holding period: Both parties will hold the tokens for at least one(1) year after the swap.
- Sale of tokens: Following the one-year period, each party has the right of Preemption if the other party decides to sell.
- Communications around the partnership
- To ensure operational effectiveness, a monthly call will be set up by at least one representative of each organization.
Successful Metrics or KPIs
- Increased treasury value from the token swap
- VitaDAO would gain exposure to the BANK token value if the BANK token outperforms Vita.
- BanklessDAO raises awareness around VitaDAO through mutual community engagement.
Sentiment Poll
Approve/Deny
- Agree
- Agree with revisions (please comment)
- Disagree
1 Like
I’m curious how many of these partnerships Bankless has done and with whom 
3 Likes
They are fairly active in partnerships, see their forum: Search results for 'partnership' - Bankless DAO. They are definitely one of the most bottom up, broad and active DAOs broadly, and thus think super exciting to create this first small collaboration.
3 Likes
Fully support this proposal! Of course I’m biased as I’ve contributed to this proposal, but I’d like to stress that I found the Bankless community to be highly professional and diligent in collaborating with us on this DAO2DAO relationship, and I’m glad they’ve decided to propose a partnership with us in their forum. BanklessDAO is an exciting community, somewhat like a decentralised ConsenSys, that is highly engaged and a great partner for us, not only when it comes to educating about DAOs and onboarding not so crypto-savvy users to web3.
3 Likes
Absolutely in favor, though will admit as a $BANK holder I do have bias. However, I believe the strength and diversity of the Bankless community speaks for itself.
Among others things, one of the most stand-out aspects of the BanklessDAO community is their discord organization. They have one of the most engaging onboarding experiences that I am aware of. I think VitaDAO would benefit greatly from collaboration with BanklessDAO community leadership.
3 Likes
Totally agree, we could learn a lot from them, and team up in general to share learnings
I do NOT think this proposal will accomplish the stated KPIs.
This seems like an incredibly high-risk way to try to diversify treasury. If treasury diversification is the goal, why not sell $Vita on the open market to buy the desired tokens, or bond $Vita at a discount to notional value? Is there already a treasury diversification plan (eg hodl X% Eth, Y% stables, Z% high risk coins) that this fits into? If not, perhaps this proposal should be shelved until that plan is worked out, and re-evaluated then.
We’re in a bear market where small tokens are getting absolutely hammered. I don’t think this is the time to be risk-on, especially with a token that has underperformed $Vita over the last year (see 1 year charts from Coingecko below: $BANK is -50%%, whereas $VITA is +27% in the same time period).
Even outside of bear markets, Influencer/social media tokens also have a track record of being pump/dump. I think VitaDAO will get rugged on this, which means treasury value will not increase.
It’s also a red flag to me if this token swap is necessary for ‘mutual community engagement’. If it’s not necessary for mutual community engagement, why not engage with the community first for 6-12 months, and then revisit? Marketing can be much better quantified than ‘raise awareness’; I’m concerned that they don’t have specific KPIs in that regard.
$VITA
$BANK
1 Like
its a fair point, and agree that it might not necessarily outperform Vita, but still be extremely valuable to involve their community actively (which happened really intensely with PrimeDAO after our swap), and think $25k is small enough of a token swap that it should be alright, and agree that it makes also sense to have other mechanisms to fundraise like the focus on our institutional round.
1 Like
If I understand correctly, the main benefit is marketing, with potential treasury diversification. What is the overall marketing strategy, and how does this proposed partnership fit into that plan? Are there other DAOs that would be better strategic partners? What was the impact of PrimeDAO interest long-term after that swap?
Would that money be better spent raising awareness at scientific society meetings or in other ways? Would that depend on estimates of how $BANK fares? Do the tokenomics of $BANK matter? Would your evaluation of this proposal change if you assumed the long-term value of $BANK goes to zero?
2 Likes
Agree! PrimeDAO involved us in calls to shape their product to be more valuable for us, as well as sharing tweets, articles about VitaDAO etc.
Think ultimately we exchange tokens, vs paying eth or usdc… so on raising awareness through science meetings, we also do this and sponsor relevant events like the science poster sessions at 2022 Systems Aging Conference GRC
Think $BANKs value is unlikely to go to zero, and idea would be to have community calls with their community, and hopefully be on Bankless podcast etc., but not all finalized yet
2 Likes
This proposal is now live on Snapshot.
Voting starts on: 21 May 22 05:29 UTC
Voting ends on: 28 May 22 05:29 UTC
1 Like
