TLDR

DeFiance Capital proposes to purchase 5% (13.7m CLOUD) of the CLOUD community reserve tokens. As a long-term strategic partner since 2021, we aim to deepen our commitment to Sanctum while continuing to provide strategic value through our extensive network in both crypto and TradFi sectors.

Summary

This proposal outlines DeFiance Capital's intention to purchase CLOUD tokens directly from the Sanctum community reserve. Our multi-year partnership has consistently delivered value through capital deployment, strategic introductions, and ecosystem development. This acquisition represents a natural progression of our relationship and aligns our interests further with the Sanctum community's long-term success.

Proposal

About DeFiance Capital

Founded by Arthur Cheong (@Arthur_0x), DeFiance Capital is a prominent crypto investment firm with a strong footprint globally. The firm specializes in liquid token investments with high growth potential, driven by a thesis-based, fundamentally grounded approach. Our investment philosophy centers on identifying and supporting projects that demonstrate strong fundamentals, innovative technology, and the potential for significant ecosystem impact - with Sanctum being a key example.

Background & Partnership History

DeFiance Capital and Sanctum have maintained a strong strategic partnership since 2021. Our relationship began with our initial investment in Sanctum, where we not only provided capital but also leveraged our network to connect the team with other major funds, helping to establish Sanctum's position in the ecosystem.

On-going Contributions

Our commitment to Sanctum's growth has continued to evolve:

• LST Partnership Development: We facilitated key introductions between Sanctum and various Solana DATs (Digital Asset Treasuries), enabling strategic LST (Liquid Staking Token) partnerships that expanded Sanctum's ecosystem presence.
• Market Exposure: We actively encouraged the team to present CLOUD at industry events and worked collaboratively to refine their pitch, increasing exposure to liquid funds and institutional investors.
• Strategic Advisory: Ongoing guidance on positioning and growth strategy within the rapidly evolving Solana ecosystem.

Future Value Addition

DeFiance Capital commits to the following ongoing support:

1. Institutional Promotion: Active promotion of Sanctum's products to our extensive network of crypto funds and traditional finance institutions, opening new channels for adoption and liquidity.
2. DAT Integration: Facilitate seamless integration with all major DATs, ensuring Sanctum maintains its competitive edge in the liquid staking landscape.
3. Strategic Advisory: Continue providing strategic guidance on product development, partnerships, and market positioning.

We seek to acquire CLOUD tokens and ensure that the community reserve gains funds that can be strategically deployed in the future.

Operations Details

Acquisition Terms

• Amount: 13.7M CLOUD (5% of of Community Reserve supply)
• Price: $0.12; This is the 30-day TWAP price of CLOUD when we initially submitted the proposal to the Sanctum team
• Payment Currency: USDC
• Payment to: Sanctum Community Reserve

Use of Proceeds

The cash raised from this token sale will be transferred to the Sanctum's Community Reserve. This injection of resources will enable Sanctum to accelerate ecosystem development and strengthen its operational capabilities.

Transparency & Governance

• All transactions will be executed fully on-chain
• Complete transparency of token acquisition and holdings
• Adherence to all governance processes established by Sanctum

Execution Timeline

Upon approval, the acquisition will proceed according to the community's governance timeline with all relevant transaction details made publicly available.

Conclusion

This proposal represents a natural deepening of a partnership that has already proven mutually beneficial over multiple years. DeFiance Capital's acquisition of community reserve CLOUD aligns our incentives with the community while ensuring we continue to provide maximum strategic value to Sanctum's growth and success.

We look forward to the community's feedback and approval of this proposal.