Polychain Capital approached some of the active Governance Meeting participants before Christmas to see if there was an opportunity for a partnership. We have worked together to design a formal proposal to bring to the community.
Links to articles by or about polychain in the mainstream press: Wired, Business Insider, TechCrunch
Link to Ryan Zurrer's presentation of the deal at the Governance Meeting on January 8: Jan 8 5:50
The plan is to pass the proposal at the next governance meeting after a one week period allowing for public comment and objection, according to the rules of the governance process.
This is a copy of the proposal document circulated by Polychain to Governance Meeting participants:
Polychain Capital – Proposal to MakerDAO
Polychain Capital is the leading cryptographic token investment fund. Our investment approach is through systematic, math-based analysis combined with deep domain knowledge and acute understanding of the Blockchain and cryptocurrency landscapes. We work with Blockchain-enabled projects to add considerable value through strategic advisory, access to our extensive network in the Fintech community and our technical insight and experience. We bring a breadth of experience from within the Blockchain space led by Olaf Carlson-Wee, a former senior executive at Coinbase. Our team is composed of senior technologists, top-tier executives and investment professionals that offer unique insight for our portfolio projects and our investment partners based on outlier successes in investment banking, fund management, Fintech startups and other industries.
After extensive analysis, Polychain Capital has selected MakerDAO for inclusion in the Polychain I token portfolio. We seek to close commercial conditions for a one-time acquisition of the MakerDAO governance token MKR (the “Acquisition), based on the conditions set forth below.
Obligations of Polychain Capital:
Attendance of the weekly Governance Meeting:
A representative of Polychain will attend the Governance Meetings on a weekly basis and offer input, strategic guidance and help as may arise and may be reasonably required by MakerDAO team.
Timeline: 12 months, extendable via mutual agreement for another 6 months.
Selected Representative: Ryan Zurrer will be appointed as the primary contact and participant in the Governance Meetings. See abbreviated biography below for more information on Ryan’s background and track record.
Should another Polychain Capital team member be necessary as a Supplant, the Parties will mutually agree on a suitable executive.
Assistance with public communications:
After the Acquisition of MKR by Polychain Capital, the Parties will work together on a public statement, approach interested publications about writing an article on MakerDAO and offer support and guidance regarding public communications.
White Paper and Communications Materials Revision
Ryan will work closely with the MakerDAO team to deeply understand the CDP-engine, the Dai and all of the different components of Maker and reproduce the White Paper and certain communication materials for Maker to begin a campaign to find appropriate partners to fill the roles of CIFs, market makers, Dai borrowers and institutional support.
Strategic Advisor & Token Distribution Plan
Polychain Capital proposes to work together with MakerDAO to construct a comprehensive token distribution plan that A) allows for adequate fundraising to finish core development and continue to support MakerDAO and its many parts, B) distribute MKRs to a range of parties that best support the strategy goals of the project, both individuals and large institutions that offer more than just capital in return for tokens and C) best supports the success of the Dai-CDP market and MakerDAO, in general.
Upon request, Ryan can be available for consultation on strategic issues, recruiting, or other items as the need may arise.
Use Maker as Leverage Platform
Maker and Polychain have considerable synergies one of Polychain’s primary leverage platforms. Should Polychain seek leveraged token trading, it is very likely that Polychain will obtain said leverage through the Maker Dai CDP market, probably in the range of 50000-100000ETH, when the Maker Dai CDP market is ready as long as the all-in cost of leveraged trading is competitive and not above 1% using Maker.
Polychain Capital endeavours to help MakerDAO in refining its messaging and subsequently approaching large financial institutions in order to find a suitable CIF (Capital Investment Fund) as defined in the MakerDAO white paper, who could act as a Keeper/Trader or other market utility function, add value in a governance role by acquiring a significant amount of MKR and/or offer other utility to MakerDAO. Should Polychain Capital be successful in introducing MakerDAO to a financial institution that agrees to support the Dai-CDP market and acquire a significant amount of MKR in the process, Polychain Capital would be awarded a 7% commission on the MKR purchase of the given CIF.
Polychain Capital shall purchase of 1% of all MKR (10,000.00MKR) at USD4.00 per MKR to be executed via a one-time transaction for ETH on a date to be agreed upon between the Parties no later than January 15th, 2017.
Subsequent purchases of MKR are to be negotiated between the Parties and neither party makes any guarantees or warrants any commitment with respect to the future price of MKR or any future acquisition of MKR by Polychain Capital or other entities.
Obligations of MakerDAO:
Funds from Acquisition will go towards development.
The funds received by the Polychain Capital acquisition will be spent on development of MakerDAO, Maker Market, Dai-CDP or business development.
Funds from the Acquisition will not be spent to liquidate prior investors and or team members of their investment in MakerDAO.
Continuity in technical-lead of the project
Nikolai Mushegian and Nexus must have a contract for at least 24 months of development that includes at least 3 developers full time.