Simple Summary
Transfer ownership of protocol parameters and treasury assets into Derive Subsidiary (BVI) Ltd (the “BVI Subsidiary”), a subsidiary of Derive Foundation (the “Foundation”). Permit BVI Subsidiary to manage protocol parameters and use the treasury for DAO-approved programs.
Abstract
The multi-signature smart contract that manages protocol parameters and holds a variety of treasury assets at the direction of the DAO currently sits outside the purview of the Foundation. This proposal approves the transfer of ownership of protocol parameters and treasury assets into the BVI Subsidiary and its 3 of 5 multi-signature smart contract (the “Multi-Sig”).
Protocol parameters to be transferred include but are not limited to the parameters listed here.
Treasury assets will have limited scopes for usage by the BVI Subsidiary. The full list of assets and their scopes are defined in specification.
Context and Objectives
This creates a clear execution lane in the BVI for speed and accountability. The BVI Subsidiary can fund programmes directly via legal agreements. No additional DRV will be allocated to the team or contributors.
Specification
The DAO resolves to transfer ownership and administration of protocol parameters, and to transfer custody and control of the treasury assets listed below, to Derive Subsidiary (BVI) Ltd, a wholly owned subsidiary of Derive Foundation. The Foundation and the BVI Subsidiary shall take all corporate actions required to implement this resolution, including board approvals and, where applicable, supervisor consent.The transfers take effect upon execution of the relevant on chain and off chain actions.
1. Protocol Parameters
Protocol parameters to be transferred include but are not limited to the parameters listed here.
This proposal gives the BVI Subsidiary and its directors authority to add and update protocol parameters at their discretion pursuant to the bylaws.
Protocol administration includes smart contract upgrades that are minor improvements, security fixes, or feature enhancements.
2. Treasury Assets
A list of the largest treasury assets (“Treasury Assets”) to be initially transferred from the current multi-signature wallet to the new BVI Multi-Sig, as well as the scope in which they can be used by the BVI Subsidiary, is outlined in the table below (live balances are maintained in the public registry, figures at posting are indicative):
| Asset | Amount* | Source | Scope |
|---|---|---|---|
| USDC | 2,465,420 USDC | Security module, i.e. protocol fees. | DRV buybacks. Fee rebate programs, fee share programs and miscellaneous reward programs for makers/takers and third-party integrators of Derive protocol. Operational expenses, including infrastructure costs and core contributor salaries. |
| ETH | 62.5 ETH | Rollup fees. | Operational expenses, including infrastructure costs and core contributor salaries. |
| DRV | 142.07m DRV | Unissued DRV supply. Bought back DRV. Unstaking fees. | Trading / integration incentives, future airdrops or reward programs. NOT used for team compensation or token sales, nor part of the strategic mint allocation. |
* Amounts are estimates at the time of proposal
This proposal removes any vesting conditions, constraints and restrictions imposed on the Treasury Assets, and authorises the BVI Subsidiary and its directors to use these assets at their discretion in accordance with the bylaws and the scopes defined above, subject only to applicable law and contract.
The longer tail of Treasury Assets in the current multi-signature wallet that are not included in the table above can be transferred to the new BVI Subsidiary and Multi-Sig at the director’s discretion, following the same scopes outlined above. A non-exhaustive breakdown of assets can be found here.