Dear Bankless Nation 🏴,

As usual, we are excited to bring you the latest updates from our community.

This week’s community call revolved around the recent snapshot proposals, particularly focusing on the multisig longevity proposal. This discussion showcased our commitment to transparent and inclusive decision making, reinforcing our drive to a more sustainable future.

The multisig longevity proposal, which is still live for voting, suggests a strategic shift in our asset allocation, which will move some of the possible high-risk BANK tokens to the more stable ETH. This adjustment is aimed at achieving two key objectives: provide a longer runway for the multisig and the DAO, and reduce the overall risk associated with holding the BANK token.

Together, we continue to push boundaries, embracing challenges and seizing opportunities, propelling our DAO towards a purposeful decentralized future. Let's dive into this week's highlights, and in case you missed anything, catch up now!

Wishing you a wonderful weekend and a Happy International Father's Day!

Contributors: Ritaakubue, Ifeoluwakiitan, Tonytad, Paulito, Boluwatife, Kornekt, WinVerse

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📤 Delegate your ZK tokens to DAOplomats.

🏃‍♀️ Catch up: Listen to this week's Community Call recording.

Snapshot Votes

💰 LP Reduction For Multisig Longevity

This proposal seeks to decrease the DAO's liquidity pool (LP) by either 25% or 50%. This strategy aims to mitigate the risk associated with holding the highly volatile BANK token and enhance the DAO's longevity by boosting the amount of ETH in the treasury. Let us know your direction on this by casting your vote on Snapshot.

Possible LP Reduction

Author: Ifeoluwakiitan

gm community members! At the Community Call this week, conversations deepened on BANK treasury diversification, a topic that’s been in the talks for a while now. As a community member noted, while this discussion may seem to have come out of the blue, it is not surprising and can be considered timely during this phase of the reconstruction process.

The value of BANK has been significantly affected as a result of the current restructuring. It is therefore important that we safeguard the token’s value, keeping it with the community, but in a different form.

The current proposal, headed by coffee-crusher, suggests that 50% of the liquidity pool should undergo conversion. This would create a reaction in the market, reducing the risk of holding the volatile BANK token and increasing the longevity of the DAO with the increased ETH in the treasury.

The Rationale Behind it

The option to leave the token in our wallet remains, with the price fluctuating based on market interactions. However, the switch would help increase the runway for the DAO's treasury and reduce the dependency on market interactions, which affect the worth of the tokens in the treasury. Thus, a swap of a percentage of the BANK tokens in the liquidity pool to ETH would help maintain the value of the tokens, supporting the next iteration of the DAO following the restructuring process.

What to Expect After it Occurs

The completion of the switch would help accomplish the following:

• Reduce the multisig risk of holding the high-risk BANK token over the long term.

• Provide a longer runway (i.e. longevity) for the multisig and the DAO by holding more ETH.

• Still provides an opportunity for BANK token holders to sell in the remaining LP.

• Reducing the size of the LP will reduce the amount of BANK available for swapping. The purpose of a liquidity pool is to allow swapping of the two paired tokens, without having to sell the token, and therefore it would not affect the BANK token price.

What Happens Afterwards

If this proposal is passed to reduce the LP, the multisig would reduce the liquidity pool by either 25% or 50%, depending upon the passed percentage amount in the proposal.

Conclusion

To participate in the decision-making process, head over to the tlBANK snapshot space and cast your vote. Even if you're not a core team member or a whale stakeholder, your voice and participation hold real power and significance by virtue of being a tlBANK-verified member. Don't let that influence go untapped. Have a fantastic weekend!

Delegate Your ZK Tokens to DAOplomats

Join us in empowering the future of zkSync by delegating your tokens to DAOplomats. As seasoned experts, we drive strategic vision and empower core teams, ensuring protocols align with community goals. Through strategic collaboration, we focus on initiatives that benefit all stakeholders. Our governance model creates smooth, uninterrupted workflows for effective management and oversight.

Our vision for zkSync is rooted in protocol integrity, innovation, and global collaboration. We uphold the integrity of zkSync through transparent processes and foster innovation to enhance scalability, security, and functionality. To delegate:

• connect your wallet at vote.zknation.io/dao

• select delegate your tokens

• enter ‘gov.daoplomats.eth’ and sign the transaction.

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