Thanks to everyone who has engaged in this discussion so far for the great feedback. There’s a marked contrast between the respectful engagement I’m seeing on this forum and the coordinated smear campaign that the White Whale team is pushing against me on twitter right now for pursuing this proposal. I appreciate all the voices that have engaged respectfully and made their thoughts known.
It seems like most of the feedback from the White Whale Community is centered around 3 main points, so I’ll address each of those here:
Impact on Current Sail DAO Builders on Osmosis
It bears repeating that this proposal does not impact Builders who have onboarded to the Sail DAO, nor their liquidity positions, in any way. The proposal simply takes existing positions and moves them out of the custody of the SAIL DAO and into the Osmosis community pool.
- The positions remain LPed
- There’s no impact on these positions being traded
- Builders won’t notice any difference in their day to day operations as a result of this proposal.
The only builders that will arguably be materially impacted by this proposal are the Migaloo Foundation, in that they won’t be able to leverage their 43% vote power in the Sail DAO to allocate liquidity where they want it to go.
Impact on SAIL Investors
It’s important to recognize that while the clawback mechanism is called the “Killswitch,” This proposal isn’t actually killing the Sail DAO. The SAIL token will still have governance power over the DAO’s treasury, which will still contain a substantial amount of WHALE and SAIL tokens. So it retains its primary usecase as a governance token.
The argument that keeping the OSMO in the DAO forever is mandatory because people bought Sail knowing the OSMO was in the DAO is not well-taken. That was never the intended purpose of these funds and the original proposal reflects this:
The fact that Osmosis is using the authority granted to it by the initial proposal should not be a surprise to anyone, especially considering the events referenced in the body of my initial forum post.
We Should Consider Alternatives to the Killswitch
There’s been some talk about first taking other approaches to fixing the myriad issues with the Sail DAO before invoking the Killswitch. This argument resonates, however, it makes more sense to look into options for fixing the Sail DAO after the current OSMO funding is safely back in the community pool.
The DAO and the Migaloo Foundation that controls it with a 43% vote power share have not made any efforts to fix glaring issues with distribution and Whale ecosystem insider-dealing in distribution of funding up to this point, and if we abandon this proposal now, they’ll have no incentive to do so in the future.
The only reason this is coming up now is because they realize that there’s a risk of the clawback going through. So I propose that we approach any discussions about fixing the DAO from a position that incentivizes our counterparty to take real action.
We should also consider other alternatives to liquidity deals outside of the Sail DAO like Timewave’s covenant mechanism, as these may be preferable to the approach originally outlined in proposal 708 that created the Sail DAO.
Upcoming Liquidity Deals For The Sail DAO
Another issue that has come to my attention since posting this is that apparently there are other deals in the works that don’t inspire confidence in the direction that the Sail DAO would head if we left this liquidity in their treasury.
Two of these projects are white whale ecosystem projects, and another one will likely be pursuing listing through more traditional routes anyway, so not sure how the Sail DAO is involved or why it needs to be.
It just shows that the only projects this DAO is onboarding are projects that directly benefit White Whale and their investors. This DAO had the potential to be a great tool for negotiating liquidity deals with promising projects across ecosystems, but unfortunately it has fallen short in that regard and put OSMO tokens at risk.
It’s time to cut the sails.