# Sail With the Whale V2: SAIL DAO (Updated) **URL:** \ **Category:** SAIL\ **Tags:** passed\ **Created:** [December 20, 2023, 5:47pm UTC](https://forum.osmosis.zone/t/sail-with-the-whale-v2-sail-dao-updated/1041 "2023-12-20T17:47:52Z")\ **Posts on this page:** 1\ **Showing post:** 1
**Author:** ![Sebastian](https://avatars.discourse-cdn.com/v4/letter/s/4da419/32.png) [@Sebastian](https://forum.osmosis.zone/u/Sebastian)\ **Post date:** [December 20, 2023, 5:47pm UTC](https://forum.osmosis.zone/t/sail-with-the-whale-v2-sail-dao-updated/1041/1 "2023-12-20T17:47:52Z")
The Previous proposal #694 “Sail With the Whale” requested deployment of 5 mil OSMO to seed 2 LST pools on White Whale DEX deployed on Osmosis chain. On top of the deployment of WW DEX onto Osmosis, other obligations from the Whale side included integration of OSMO LST’s into Migaloo ecosystem projects as well as further SC deployments and liquidity pools on Osmosis, as is consistent with the “Sail With The Whale” program. Based on community feedback, we have given the first edition of the proposal a restructuring. The new version lowers the total ask from 5 mil to 3.5 mil Osmo, allows more flexibility for the deployed liquidity, decentralizes control of said liquidity, creates an exciting new DeFi product on Osmosis, and has a kill switch which can clawback the liquidity if necessary. Revised terms : 1. Creation of a new DAO on Osmosis DAO DAO called SAIL DAO. A. SAIL DAO will issue a total supply of 1,000,000,000 SAIL tokens (updated) a. OSMO CP will be given authorization to veto all votes by the DAO and authorization to clawback the liquidity at any time (updated) b. 400,000,000 will be airdropped to OSMO stakers who vote on this prop i. Airdrop to be distributed proportionally based on OSMO voting amount i.e. 1 OSMO voted = x $SAIL, 50 OSMO voted = 50x $SAIL ii. All voters will receive the airdrop, regardless of how they vote b. 100,000,000 will be airdropped to the WHALE community (WHALE native stakers, LST holders, details tbd, subject to Sail DAO gov vote) c. 500,000,000 will be retained in the DAO treasury d. Total supply is capped, no new $SAIL tokens can be minted 2. OSMO CP will fund SAIL DAO treasury with 3.5 million OSMO A. The Osmo will be sent directly from CP to the SAIL DAO treasury, liquidity will be deployed from the SAIL DAO treasury through onchain governance, (an ops multi-sig wallet may be required to facilitate lp position deployment so as not to lose on slippage due to length of voting period. Said multi-sig would only handle 1 lp position at a time, then once liquidity is deployed into the pool at the proper ratio, all LP tokens and excess tokens to be sent back to the Sail DAO treasury) 3. Migaloo Foundation will execute an OTC deal with SAIL DAO – 10 mil WHALE for 100,000,000 SAIL tokens (leaving 400,000,000 SAIL remaining in the Sail DAO treasury) 4. White Whale DEX will deploy SC’s on Osmosis (.1% taker fee shared with OSMO stakers) 5. SAIL DAO will deploy and manage liquidity on White Whale DEX via decentralized governance. A. SAIL DAO will take the following Initial LP positions a. 1.25 mil OSMO into each ampOSMO-OSMO and bOSMO-OSMO pools b. WHALE-OSMO pool (5 mil WHALE paired against OSMO at market spot ratio) c. After adequate price discovery (one month after token launch), a prop to inject liquidity into a SAIL-OSMO or SAIL-WHALE pool can be proposed to the SAIL DAO B. WHALE ecosystem projects, or any project that wishes, can propose an OTC deal and/or liquidity deployment with SAIL DAO, all decisions by $SAIL holders through on-chain voting C. Osmo CP can veto any prop or clawback Treasury through a gov prop if necessary (kill switch) Benefits: 1. More capital efficient – The original prop seeded 2 LST pools, while LST’s having deep liquidity is important, they are some of the least efficient pools out there, not always having high volume. By deploying liquidity in a wider variety of pools, this new structure will generate significantly more volume and fees for both OSMO and WHALE stakers, even with a lower ask, translating to more potential upside and incentive alignment for all parties. 2. Everyone has skin – In this structure both Osmosis and Whale communities will now have skin in the DAO. Ecosystem projects also will be required to allocate tokens for OTC deals with the DAO in order to qualify for liquidity. 3. Exciting new DeFi Experiment – While Liquidity DAO’s are becoming popular (i.e. MANTA DAO, etc…) this is a first for Osmosis governance, if successful it can be a very exciting and fruitful venture for both the Osmosis and Whale communities 4. VE tokenomic flywheel - the DAO introduces it’s own version of ve tokenomics, where users are able to direct OSMO liquidity by market buying $SAIL 5. Acquisition of Ecosystem – Effectively this prop aggregates the Migaloo ecosystem and establishes Osmosis as the default landing zone for liquidity and deployments outside of Migaloo itself, it also integrates the enthusiastic Whale community. Risks: 1. OSMO exposure – By LP’ing some of the new and upcoming ecosystem projects launching on Migaloo, OSMO will have exposure to these volatile assets, which works both ways. This risk is limited by diversification and splitting/limiting OSMO liquidity between the newer assets, all of which decided at the discretion of the DAO 2. 51% attack – attacker could market buy a sufficient amount of $SAIL to sway a malicious prop and divert funds. This risk is mitigated by the kill switch mechanism of the OSMO CP. The voting period for SAIL will be longer than the voting period for OSMO governance, so if a malicious prop is introduced, the OSMO community will have sufficient time to introduce a prop to vote it down. 3. Gaming Liquidity direction – a malicious actor could once again accumulate $SAIL and attempt to direct liquidity for personal gain. Again mitigated by kill switch. Summary: This proposal can be looked at a lot of different ways: It’s a liquidity injection, it’s an M&A deal, it’s a new project/DAO launch on Osmosis, it’s an airdrop, it’s a DeFi experiment. SAIL DAO could be a meaningful step forward in Osmosis quest to expand from an appchain to an Empire. We look forward to discussion and feedback. --- _[View the full topic](https://forum.osmosis.zone/t/sail-with-the-whale-v2-sail-dao-updated/1041)._