Abstract
This proposal seeks approval to liquidate the Big Time assets currently held in the DAO treasury. The objective of this sale is to mitigate risk exposure in a volatile NFT and gaming market by converting these assets into a more liquid form. By approving this proposal, the DAO community will enable the treasury to optimize resource allocation in alignment with strategic goals and financial sustainability.
Motivation
The DAO holds a significant position in Big Time assets, including in-game items, NFTs. While these assets were once considered valuable for long-term investment and utility, the current market conditions and the lack of active management make them less effective in contributing to the DAO’s broader financial objectives.
Holding these assets exposes the DAO to market fluctuations and liquidity risks. A structured liquidation of these holdings would allow for:
- Diversification of treasury holdings
- Enhanced liquidity for operational expenses
- Reallocation of capital to align with long-term strategic goals
By executing this sale, the DAO can achieve a more balanced financial position, ensuring risk management while maintaining capital efficiency.
Execution and Transparency
To maintain decentralization and transparency while ensuring professional execution, the DAO authorizes a 2-of-2 multisig composed of DAO-approved contributors to execute the sale strategy.
This multisig is strictly mandated to:
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List and sell the approved assets on selected marketplaces
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Explore OTC opportunities with pre-disclosed and vetted buyers
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Provide monthly execution reports to the DAO
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Document all activity on-chain or in publicly accessible reports
No assets may be sold or transferred beyond the scope of this proposal without additional DAO approval.
Where technically feasible, smart contract integrations or escrow-based OTC tools may be employed to automate and decentralize components of the process.
Sales Criteria and Guardrails
To avoid discretionary decisions and ensure transparency, the following criteria shall govern all sale activity:
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Listings must be at no more than a 20% discount from the Price Parameters: average floor price across top marketplaces (OpenSea, Blur, X2Y2), based on data at the time of listing.
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Rare or illiquid assets without a reliable floor must be justified with a written valuation rationale shared with the DAO.
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OTC counterparties must be publicly disclosed at least 48 hours before a transaction.
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Terms of the deal (asset ID, buyer address, sale price) must be published to allow community review.
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Sales must be staggered to avoid excessive supply shocks.
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No more than 10% of the total asset portfolio may be sold within any rolling 30-day window unless explicitly approved through a separate DAO vote.
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A real-time sales dashboard or transaction tracker must be made available to the community.
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Reports must include:
DAO Oversight Clause
Any DAO member may submit a “Pause Liquidation” proposal should they identify a deviation from the approved criteria or have a well-founded concern. If passed by quorum, the multisig must immediately halt further asset sales pending resolution or amendment of the strategy.
Execution and Transparency
The DAO commits to executing the sale of Big Time assets in a manner that maximises value for its members. Transactions will be handled with transparency and strategic oversight, ensuring that each asset is sold at the best available market price or through OTC deals with vetted buyers. For OTC transactions, the DAO will implement a buyer verification process, including basic KYC/AML checks, to ensure compliance with applicable laws and to mitigate counterparty risk.
To maintain full accountability, all sales will be documented and made publicly available. A final report will be presented to the DAO community upon completion of the liquidation process. This report will include:
- A breakdown of all transactions executed
- The strategic rationale for each sale
- The final outcomes and impact on the treasury
This approach reinforces the DAO’s commitment to transparency and responsible treasury management.
Proposal Details
Asset(s) to be Sold:
- Big Time NFTs & In-game Assets
- Marketable, OTC potential
- Action: List on secondary marketplaces and explore OTC buyers
Amount or Percentage to Sell:
- 100% liquidation of assets where liquidity allows
Target Sale Price:
- To be determined based on market conditions, with a preference for OTC deals where advantageous
Expected Timeline:
- 12-24 months
Allocation of Proceeds
Funds generated from the Big Time asset sales will be securely held in the DAO treasury, ensuring transparent custody. Proceeds will not be redirected towards new investments without a separate governance proposal and community approval.
This ensures that financial resources are managed prudently in alignment with the DAO’s strategic priorities and risk framework.
Risk Disclosure
The DAO acknowledges that the proposed liquidation carries certain risks, including:
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Market volatility: The value of Big Time assets may fluctuate significantly during the liquidation period.
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Regulatory uncertainty: Future regulatory developments could affect the classification or treatment of NFTs and digital assets.
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Counterparty risk: OTC deals may involve counterparties that fail to complete payment or delivery; hence, due diligence will be conducted.
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Tax exposure: The DAO may incur unexpected tax liabilities if asset sales trigger reportable events under applicable laws.
The DAO will mitigate these risks through strategic execution, legal consultation, and ongoing community transparency.
Voting Options
- For: Approve the liquidation of Big Time assets as outlined in this proposal.
- Against: Reject the proposal; no sale of Big Time assets will occur.
- Abstain: Abstain from voting.
Implementation Plan
Upon approval, the DAO will initiate the sale process in accordance with the outlined strategy. Regular updates will be shared with the community, and a final report will be issued at the end of the sale period to ensure full transparency and accountability.