Summary
After significant due diligence to find the right partner, the Treasure Council is pleased to announce that it has entered into a strategic arrangement with venture fund 1kx to execute ratified TIP-03.
Under this arrangement, 1kx will take the majority of the allocation of 70% of Y1 Ecofund (10,450,984 tokens) at a token price of 0.144 per MAGIC (including 30% discount). Tokens will vest on a 12 month lock up plus a 24 month linear unlock thereafter. All team tokens will now align to this model including the previously approved tranche 1 in TIP-01.
Through this process, it has become clear and prudent that additional funds will be required to bolster capability and secure runway in a highly competitive space - particularly within a backdrop of an uncertain macro-environment. TIP-06 seeks approval from the DAO to use an additional 9,948,976 tokens on top of the TIP-03 approved 10,952,911 to fund this important next stage of growth. This includes the balance of the 70% of the Ecofund (502,008), the 30% balance of the Year 1 Ecofund (4,694,139) and 5,254,837 from Year 2. 1kx will lead the round and curate a strong network of partners.
Rationale
1kx will be the foundational strategic partner to support Treasure through its growth journey under TIP-03. They are the ideal mix of long-term aligned with the right expertise and network that will help Treasure rapidly scale and grow.
1kx is an early-stage fund that helps founders launch and bootstrap token networks with a focus in DeFi, NFTs and social tokens. They launched in 2018 and have since been building a world-class platform with the goal of being the most founder-friendly and helpful source of capital. With the recent addition of Jiho, Co-Founder of Axie Infinity as a Venture Partner, they also bring unrivalled real-world expertise on how to build and scale a highly engaging crypto-enabled metaverse and community.
Additional funding requirements
Having discussed our plans with the 1kx team, it has been made clear that it would be prudent to seek additional funds to compete effectively in a highly competitive and fast growing space.
Incremental funding will be used to bolster capability - in particular design and development - and will provide added runway for entering into uncharted territory. It is prudent for us to seek this funding now, versus later in an ambiguous macro-economic environment. We will continue to supplement the DAO Ecofund and Treasury through the emerging success of our Marketplace and exploration of Treasury diversification strategies (eg. protocol owned liquidity and treasury swap models).
Proposal
Use an incremental 9,948,976 tokens to fund this important next stage of growth. This includes the balance of the Year 1 Ecofund (4,694,139) and 5,254,837 from Year 2. It is proposed that 1kx lead the $3M funding round with $1.5M (10,450,984 tokens) and help curate the right mix of strategic partners that collectively with the DAO will help rapidly scale the Treasure ecosystem.
Polling Period
The polling process begins now and will end at 01:59am UTC on 27 November. If quorum is reached, a Snapshot vote will be put up at 02:59am UTC on 27 November.
