Claw Back SAIL DAO Funding

[Sebastian]

@RoboMcGobo has clear conflicts of interest here. He works for Stride, direct competitors of Backbone and Eris, both of whom receive funding from Sail. He has been trying to invoke the kill switch since 2 weeks after Sail was born, when Lion DAO proposed the first liquidity deal. He has tried to invoke the kill switch on several other occasions, this is just the latest of which. This time his argument for invoking the kill switch is that I got liquidated. It was a $55k loan against WHALE on Kujira, not sure how that has anything to do with the Sail DAO kill switch. His thesis is a dossier of opposition research against White Whale. This isn’t a legitimate proposal, it’s a crusade.

Sail DAO has onboarded at least a half dozen teams/projects on to Osmosis. If Robo succeeds in killing it, all of them will be harmed, and likely put off by Osmosis… What message does that send to future builders on Osmosis? His personal crusade has already harmed the excellent reputation of Osmosis, and discouraged more than a few projects from doing business with SAIL. He’s already done damage, however if he’s successful in killing it i’m afraid the damage to Osmosis could be catastrophic. This could be Osmo’s prop 16 moment, or worse. Imagine if a nakedly conflicted actor successfully killed his competition through Osmo governance.

[3SERG3]

Clawing back funds from SAIL DAO will damage community trust and hurt those who supported the project . I am categorically against it.
RpDAO

[RoboMcGobo]

@Sebastian

@RoboMcGobo has clear conflicts of interest here. He works for Stride, direct competitors of Backbone and Eris, both of whom receive funding from Sail.

More attempts by the White Whale team to launch ad-hominem attacks on the proposer instead of constructively criticizing the points laid out in the proposal. I’ll say this as many times as I need to:

• This proposal has nothing to do with my involvement with Stride
• White Whale and Stride are not competitors
• Eris, Backbone, and Stride are not competitors
• This proposal leaves all LST liquidity in place and does not take any negative action of any kind against Eris or Backbone Labs

The notion that I’d put my reputation on the line to try to kill “competitors” with less than $1m in OSMO TVL is tired and a sad attempt to try to distract people from the real problem here.

All this does is show exactly why you should not be trusted with nearly $2m worth of OSMO, almost more than your entire chain’s total Market Cap

[Sebastian]

Here is the official statement from Sail DAO for reference:

It is regrettable that we must address this issue, but given the threat of termination, we have no choice but to respond. Seven months ago, Sail DAO was established as a collaborative initiative between the Osmosis and White Whale Communities. This joint venture, crafted by members from both teams, aimed to create a fun and innovative mechanism to deploy and manage liquidity. Integral to its design was a kill switch mechanism intended to claw back liquidity to the Osmo CP as a fail-safe against potential malicious control of the DAO, such as through a 51% attack.

Per our agreement, White Whale would deploy its DEX on Osmosis and onboard its ecosystem partners through the “Sail with the Whale” program, hence the name “Sail DAO.” Since then, White Whale DEX, Backbone Labs’ “GraveDigger” LST contracts, the Necropolis NFT marketplace, Racoon.bet gaming app, and the Mad Scientists NFT collection—Osmosis’ largest Streamswap—have all launched on Osmosis’ blockchain. Sail DAO has also provided liquidity for Lion DAO (ROAR), the Mad Scientist’s minting token LAB, and White Whale’s new ReStake DAO token RSTK. These initiatives have increased TVL, volume, users, and overall activity on the Osmosis blockchain. All the aforementioned builders and teams have invested in and have a vested interest in Osmosis due to Sail DAO.

Within the first two weeks of Sail DAO’s inception, RoboMcGobo threatened to invoke the kill switch over dissatisfaction with a liquidity deal proposed by The Lion DAO—a clear misuse of the kill switch mechanism. Since then, he has repeatedly threatened to invoke the kill switch for various unwarranted reasons. His latest proposal to activate the kill switch follows a recent liquidation event involving WHALE. It is evident that RoboMcGobo has sought to dismantle Sail DAO from the beginning, looking for any pretext to do so. Additionally, Robo is an employee of Stride, a direct competitor of Backbone Labs and Eris protocol, both of which receive liquidity funding through Sail DAO. This presents a blatant conflict of interest.

Robo’s actions have already caused significant harm to the Osmosis Community and its reputation with his relentless campaign against Sail DAO. Even if he fails, the constant need to defend our existence is exhausting and discouraging for all involved builders and has likely deterred potential projects from collaborating with Sail. Should Robo succeed in dismantling Sail DAO, it will inflict far greater damage on Osmosis. Investors in SAIL tokens will be left empty-handed, and projects that secured liquidity through Sail DAO—including WHALE, SAIL, ROAR, and LAB—will lose their liquidity. This scenario raises serious concerns about how these communities will react to their liquidity being removed due to a conflicted actor’s interests. What message does this send to future builders considering Osmosis? The risk of being driven away by a few individuals with conflicting interests could deter future development and innovation.

If mishandled, this situation could be as damaging as Prop 16 for Osmosis or even more detrimental, leaving a lasting stain on Osmo governance. A successful invocation of the kill switch by a Stride employee would effectively eliminate two of his competitors via Osmo governance.

Despite the actions of a few individuals, our overall experience with the Osmo community has been positive. We intend to continue contributing value to the Osmo community as long as we are welcome. Backbone Labs and Eris protocol plan to use Sail DAO to secure liquidity for their tokens, SOUL and ERIS, upon launch. Other projects are also expressing interest, provided the threat to Sail DAO is neutralized.

Unfortunately, we must have this discussion, but we hope to resolve this issue promptly and continue our mission to provide value and onboard new builders and users to Osmosis.

[J_1]

This prop doesn’t make much sense to me. The arguments are so weak.
SAIL is a sound organism to make the Osmosis chain grow bigger.

Realizing the losses from IL on the token pair now, by pulling the liquidity, is a pure loss for the OSMO token AND for the Osmosis ecosystem. I really don’t understand the proposed strategy here.

Let your SAIL partner grow. Reap the benefits, that’s all there is to do.

[crustacean]

This proposal is unfair to regular users who have invested in SAIL to improve the system. Best regards, RpDAO

[Danila_Popovich]

This proposal is unfair to regular users who invested in SAIL to improve the system.

Clawing back funds from SAIL DAO will damage community trust and hurt those who supported the project.

Please consider alternative ways to improve DAO management instead of penalizing investors.

This proposal will negatively impact everyone who believed in SAIL and invested in the project.

An unjust proposal that affects all users trying to make the system better.
MrProfRPDAO

[Sen-Com]

Sail DAO has delivered on all its promises and went above and beyond to provide value to the Osmosis community.

• White Whale: The first non-native DEX and flash loan provider
• Backbone Labs: A liquid-staking protocol and the first NFT marketplace
• Eris Protocol: A liquid-staking and the first arbitrage protocol.
• Racoon: The first gaming platform.
• Enterprise DAO: A complete DAO management suite.
• Mad Scientists: The first NFT collection.
• Ride Furnace: A Burn-Tokenization protocol.
• Airdrops: $LAB, $SAIL, and $RSTK.

Why, Robo, do you want to harm all these builders and communities?

You have repeatedly claimed that the Sail DAO treasury is at risk and must be secured. This is complete nonsense, as any proposal on Sail DAO can be vetoed by osmosis governance.

No tokens can move without Osmosis governance having the chance to veto it.

You keep reassuring everybody that the LPs will stay; however, in your own words, you have stated that follow-up proposals will unwind positions.

It’s also mildly amusing to see you accusing White Whale of attacking you when you are literally accusing White Whale of operating a slush fund - a criminal activity.

We are more than open to discussing ways to improve the token distribution or operations of SAIL DAO. However, Robo, your public slander is destructive and needs to stop immediately.

[RoboMcGobo]

Hey Sen, thanks for this response!

Can you articulate to me how I’m “harming all these builders and communities” via this proposal when:

• All existing liquidity deployments stay LPed and the holder of the LP token just changes from the Sail DAO to the community pool
• Liquidity changing hands has no impact on the underlying project itself

The original text of the proposal, in case you’ve forgotten:

@RoboMcGobo

It’s the express intent of this proposal that the LP positions for ampOSMO and bOSMO be left LPed in the Osmosis community pool to help promote diversity for LST versions of OSMO. The purpose of this proposal is not to undo liquidity positions that bring a benefit to Osmosis, just rather to change the entity which custodies those positions.

@Sen-Com

You keep reassuring everybody that the LPs will stay; however, in your own words, you have stated that follow-up proposals will unwind positions.

Do I think the WHALE / OSMO position should be unwound to prevent further loss of OSMO due to the Migaloo foundation’s mismanagement of WHALE? Absolutely. But that’s out of scope for this proposal and I’m not going to be pursuing that next step. It’s also only one position.

@Sen-Com

You have repeatedly claimed that the Sail DAO treasury is at risk and must be secured. This is complete nonsense, as any proposal on Sail DAO can be vetoed by osmosis governance.

It’s not scalable or sustainable to assume that the Osmosis community will continue to be able to keep an eye on the Sail DAO in perpetuity to raise a veto proposal in the very short window that it requires to veto a bad proposal.

Ideally, keeping close watch would be unnecessary, and there’d be an element of trust in the counterparty that they’re making decisions for the best of Osmosis. Unfortunately that trust would be misplaced in this instance.

@Sen-Com

We are more than open to discussing ways to improve the token distribution or operations of SAIL DAO.

I haven’t heard a single concrete idea to improve ops or distribution on this forum post’s replies. Don’t you think it would have been a good use of your energy over the last 2 days to present some instead of publicly dragging me on twitter?

[Razzien]

I am 100% against this proposal!

Seams to me is using as an excuse to break the ties and break the cosmos.
This prop seams to me that was the objective to create tribes and islands and not build bridges!

This osmo can be a great opportunity for projects Like syn and slide that will bring AVAX to cosmos!
And also the LP from shark and Lab was bootstrapped by the community!

Is that Robo wants to hurt the community and wants to break bridges! And used this opportunity to do so! Life should be about compromising and starting nuclear wars that will be much worse to everyone!

Stride would be much better long term if was about making friends and not enemies!

[RoboMcGobo]

Also, to correct a misstatement:

Enterprise DAO did not join Osmosis because of the efforts of the Sail DAO. I spoke with Vlad back in early December via DM about Enterprise’s launch, before Sail DAO even existed.

That was a follow up to some feedback I’d left in this thread which, again, predates Sail DAO.

Whitelist the Enterprise App

Summary This proposal is to add the address osmo173vt7uu92ycn4vtj5fk3n9mw7rrtdd9nhf8m5ump53uxj3q9czss4qc8km to the team whitelist. Whitelisting this address will give the Terraform Labs (TFL) team permission to upload the contracts necessary to enable Enterprise treasuries on Osmosis. Enterprise will provide the Osmosis community with top-notch tooling for DAO governance and treasury management, making it easy for apps and communities to grow and scale on-chain. As the largest interchain DEX on …

[Razzien]

Enterprise DAO join Osmosis because BBL so mad scientists NFTS could be staked…
And that was only possible because Sail DAO!

[Razzien]

This is the problem from today…
Nowadays, when people see something they fell is wrong, they want to start a war instead of using diplomacy! Discussing their arguments and try to fix something!

Then we end with two fractured communities passionate to destroy each other, nothing good will come of this for both parties, what is very unfortunately. And is the last thing we need in cosmos!

In 30 years instead of us using it to build we will be fighting about this is so sad, I am being extremely polite for a reason. No matter the result of the Prop, this will be very bad to osmosis, whale, Stride, atom, and all other chains from IBC like was prop 16 to Juno! There will be no winners!!! Only losers!

[Titov_Ivan]

For me-that’s proposal is illigal. Why someone can still money of society? Main aim of dao-hold moeny in safe. If anyone will have access to DAO assets, i will NEVER use DAO in future for NFT collections. It might work as it work befor. Think about users…
Expedition NFT

[Sen-Com]

Robo, you say a lot, not with the words you write but with the words you choose not to write.

• I’ve called out your divide-conquer tactic , where you try to drive a wedge into the communities building on Osmosis.
• I’ve called you out for being on a personal crusade , using public slander, and accusing us of illegal activity.
• I’ve called you out for hurting half a dozen teams , over twenty developers, and thousands of community members.

You refuse to address these issues because you know you’re wrong.

---

And make no mistake, you’re not fooling anyone with your oh, this proposal is just moving some tokens and nothing else talk. It’s a slippery slope. You know it. We know it. Don’t pretend it’s not the case. We have proof you want to cut the sails and unwind liquidity positions - your words.

There is zero risk of a hostile takeover for Sail DAO. It’s in the code.

---

Want to improve the token distribution? Want to attract more protocols? Sure, let’s have these discussions. You know perfectly well, Robo, that I contacted you privately, extended an olive branch, and asked for a meeting to discuss how we can improve Sail Dao.

You turned down the meeting. You refused to engage in constructive dialogue.

---

Sail DAO achieved what it promised and more - much more. You want to steal from everybody involved in Sail DAO.

It’s thievery. Plain and Simple.

[RoboMcGobo]

@Sen-Com

You refuse to address these issues because you know you’re wrong.

I’ve addressed them numerous times in this thread, you’re just not listening. You prefer to deflect the fault on me instead of responding to the actual text of the proposal.

You’re playing games, and people see through it.

@Sen-Com

You know perfectly well, Robo, that I contacted you privately, extended an olive branch, and asked for a meeting to discuss how we can improve Sail Dao.

You turned down the meeting. You refused to engage in constructive dialogue.

I told you that I’d be happy to have that discussion here on the forums rather than in some back-room deal. Your response, rather than engage in meaningful public discourse, was to continue your misinformation campaign and smear tactics on twitter.

In what universe do you think it’s acceptable to incite your community to attack me on twitter, then request a meeting?

[cody2nd]

I’m absolutely against this proposal! I’m quite new to crypto, found Migaloo & BBL and loved it and their communities. I did participate in missions to qualify for the SAIL token. I invested in it, because I was excited with the idea of being part of a DAO and I loved the bigger idea that normal users can participate in uniting different Cosmos blockchains and work together on a financial future that we can shape with our ideas and actions to the benefit of everyone. I noted when SAIL came out that many of the Migaloo chain users were enthusiastically buying SAIL while many from the OSMO community were dumping it (no bad feelings about it, most of their airdrops for staking OSMO were dust). In the very beginning one SAIL DAO staker had an idea and put it on the forum to discuss. The proposer here immediately started a proposal asking for the kill-switch, although the idea of this SAIL DAO staker never went live to the DAO for vote. Meanwhile BBL, Migaloo and other Dapps like Racoon continued to build and tried to bring value to the Osmosis community. While it is true that Migaloo foundation holds the majority of SAIL token it is also true that for the DAO votes they mostly abstained and left the decision to the stakers (e.g. SAIL DAO vote for ROAR-OSMO pool). Today I saw a post from RoboMcGobo on X with a screenshot where he supposedly wanted to show that initially he supported the idea of the creation of SAIL DAO. And in the last paragraph he asked if it is possible to try the “kill switch” on the testnet. And now we see again that he is trying to implement this “kill switch”, although Migaloo, BBL etc. delivered more than what was asked by them. To say now “SAIL DAO” can still continue to exist is really outrageous to me as an investor and someone who participates in SAIL DAO not for monetary interest but for idealistic reasons. And all the attacks on the SAIL DAO community are coming from one guy since months from the beginning of the existence of SAIL DAO. I’m really disappointed about this attacks instead of constructive ideas how SAIL DAO could do better.

[LlewynBonisagus]

I’m against the clawback proposal.

I originally argued on behalf of Lion DAO creating the ROAR/OSMO pool via SAIL. I’m proud that we helped bring some broader liquidity to Osmosis, and I’m glad that we were able to distribute significant $ROAR rewards to the community as a result.

As far as the clawback goes, we worked too hard and paid out too much of the requested bribe in $ROAR just to lose this important pool now. The pool works, we rewarded the community from our Treasury, and the liquidity it created is now a useful addition to the Osmosis chain. I don’t know why we’re considering harming the community members who have participated in good faith up to this point.

I would vote no with my modest stake should this proposal be brought to a vote.

[RoboMcGobo]

Updated the proposal to add a proposal summary, which should hopefully make it easier to find the relevant info.

[TheRyanLion]

Gm. Speaking here in a personal capacity.

This proposal seems to have been raised primarily in spite and with a heavy COI and I am against it - whilst I would argue that SAIL DAO could have been more aggressive in establishing liquidity partnerships, it seems to me that those that have been established have worked well so far and there’s still plenty of scope to continue the goals of the original partnership.

Should this proposal be moved on chain and potentially pass I would like to speak directly to the ROAR/OSMO LP part of your discussion. Lion DAO sent 10Bn ROAR to SAIL DAO for the purpose of creating a ROAR/OSMO liquidity pool and also for a small stake in SAIL DAO through the issuance of SAIL tokens to the DAO (our SAIL tokens are now practically worthless compared to the value of the ROAR tokens we deposited)

Should you proceed with this, and should it pass, my expectation would be that either 10Bn ROAR is returned to Lion DAO, or 50% of the established LP is distributed to Lion DAO. As ROAR has outperformed OSMO, the current pool composition is 6.3Bn ROAR/33K OSMO (seems the pool was NOT used for ROAR “exit liquidity” as had been predicted by Robo himself)

The liquidity deployment had been somewhat successful seeing ~$200K of trading activity since issuance and at one point liquidity value had increased in excess of $100K. Unfortunately due to a market downturn the value of the pool currently is ~$36K.

Lion DAO would also be open to increasing the liquidity size either in partnership with SAIL DAO, or with the OSMO community pool directly.