Council Proposal - Treasury Composition (Update)

Update 3 May 2024 This proposal has proceeded to an on-chain vote. Council members may vote until 6:20 p.m. UTC on 8 May 2024, and tokenholders may cast veto votes until 6:20 p.m. UTC on 10 May 2024. Click here for voting on Realms.

Summary

In response to valuable feedback from the Orca community, the proposal posted on Friday (regarding risk mitigation initiatives and Treasury recomposition) has been split into two separate proposals so that tokenholders can respond to each issue independently. If passed, this proposal will authorize the conversion of 50% of the SOL in the Orca protocol fee treasury (the “Treasury”) into USDC.

Description

In Q4 of 2022, the Council passed a proposal to convert fees accrued to the Treasury such that the Treasury was balanced into 80% USDC and 20% SOL (based on the then-current market value of SOL). Fees are automatically converted when they enter the Treasury wallet. However, because the value of SOL has increased significantly in recent months, the overall composition of the Treasury has shifted away from the intended 80/20% split. To honor the intent of the previous proposal, the Council proposes to convert 50% of the SOL currently held in the Treasury into USDC.

This proposal was discussed and considered during the Orca Governance Council meetings convened on 13 March 2024 and 29 March 2024. Unanimously, all Council members in attendance endorsed the submission of this proposal for an on-chain vote.

Governance Process

Forum Discussion

This proposal will be posted here for a discussion period of at least 4 days before it is formally put to a vote. This period allows community members to review the details of the proposal and share feedback.

Voting

After 4 days, a Council member may submit the proposal using their Council Token to the Signaling Governance account (6d76J…4HUf9). The account contains the following voting parameters:

Voting Period: 5 days

Council Threshold: 4 ‘yes’ votes

Veto Threshold: 1,000,000 ORCA

Cool-down Period

This account also has a 2-day cool-down period, which begins after the initial 5-day voting period. In other words, if the proposal is passed after 5 days, the community will have an additional 2 days to veto it.

Execution

If the veto threshold is not met during the cool-down period, then the proposal will pass and its contents will be implemented.