Author: Proph3t

A previous proposal by DBA and Variant to OTC $6,000,000 of META failed, with the main feedback being that offering OTCs at a large discount is -EV for MetaDAO.

We still need to raise money, and we’ve seen some demand from funds since this proposal, so I’m proposing that I (Proph3t) sell up to 2,000,000 META on behalf of MetaDAO at the market price or at a premium.

Execution

The 2,000,000 META would be newly-minted.

I would have 30 days to sell this META. All USDC from sales would be deposited back into MetaDAO’s treasury. Any unsold META would be burned.

I would source OTC counterparties for sales.

All sales would be publicly broadcast within 24 hours, including the counterparty, the size, and the price of the sale.

I would also have the option to sell up to $400,000 per day of META in ATM sales (into the open market, either with market or limit orders), up to a total of $2,000,000.

The maximum amount of total proceeds would be $10,000,000.

Pricing

The minimum price of these OTCs would be the higher of:
- the market price, calculated as a 24-hour TWAP at the time of the agreement
- a price of $4.80, equivalent to a ~$100M market capitalization

That is, even if the market price dips below $100M, no OTC sales could occur below $100M. We may also execute at a price above these terms if there is sufficient demand.

Lockups / vesting

I would have ultimate discretion over any lockup and/or vesting terms.