DAO Sponsored Proposal
The DAO recently passed a proposal to establish an exchange fund. The proposal has multiple components and I've had myself and several others review the wording of the proposal to ensure that myself and others understand the proposal as written. With that said, I think there are some logistical problems with that proposal as written and I am making this proposal with the aim to allow the DAO an opportunity to address the biggest issue I see with that proposal.
As written, the proposal only allows access to the unallocated token supply to negotiate any listings until the SPS price is above $0.10. This part makes sense. The will of the DAO is to ensure that no SPS is sold under a set price to fund the proposal. The logistical concern is that this restricts our ability to pursue a market maker, which is essentially a prerequisite to engaging the exchanges.
I've spent a good bit of time discussing the situation with our current contracted market maker to negotiate a better rate for us that comes in well below budget and to ask for favorable terms that should help us be in a position to execute on any tier 1 exchange listing opportunities that could arise. If the will of the DAO is to be in a position to pursue a tier 1 exchange in the next year, we need to strongly consider taking the first step to position ourselves to do so.
If this proposal passes the SPS DAO will allocate an additional $68,000 USDC from the DAO treasury wallet on the BSC network to expand our market making coverage to all 5 of our centralized exchange pairs. This upgrade will also include arbitrage trading on the Pancakeswap SPS:WBNB pool to hedge our liquidity positions. The SPS DAO will provide Flowdesk an additional $100,000 USDC and $100,000 worth of SPS from the DAO treasury wallet on the BSC network to increase liquidity reserves across all trading pairs, which can be recalled upon completion of the contract.
If this proposal passes, we'll be converting our current contract to these new terms and will be credited the remaining balance of the old contract. This means that we'll have roughly 8 months of service under these new terms before our contract expires since we're amending our old contract that has been active for a little over 3 months now. Flowdesk has also agreed that if we get a new listing during the duration of this contract that they're willing to convert one of the pairs (SPS:ETH on Gate.io) to cover the new listing immediately.
