OIP-59 Partnership with PhantomDAO
Summary
Formalize a partnership to integrate and align PhantomDAO and Olympus - by endorsing PhantomDAO as a partner project within the Fantom ecosystem. PhantomDAO will provide Olympus with 3.33% of its governance token at launch which it can use to stake and take part in the governance of PhantomDAO. Olympus commits that it will not reduce its exposure to PhantomDAO’s governance token. PhantomDAO also proposes to have 10% of its initial treasury to be held in gOHM with the intention to increase that percentage - subject to approval of community governance.
Background
PhantomDAO seeks to become a treasury-backed accelerator on the Fantom chain. Phantom will be focussed on building infrastructure, services and protocols to support the successful growth of the Fantom blockchain, however the accelerator thesis will be broad enough to accept participants outside of Fantom where the merits of the applicant makes sense. The treasury provides a safety net for the DAO to take concentrated accelerator participants, likely to result in outsized returns - which will be distributed 100% to the treasury to increase RFV.
Phantom has rewritten (not forked) Olympus code to create a platform that can easily be built on top of. Specific architectural changes can be found here: https://medium.com/phantom-dao/not-just-another-fork-cb0efaefea1e. It is important to note that Phantom has committed to a smart contract audit prior to launching by a reputable firm.
The rollout plans are different to other forks that came before us because we will launch DAO-first and all governance will be handled via on-chain governance voting from day one. In fact, we are acting in this spirit as a DAO even before launch. We had a lengthy discussion in our Discord server and >97% who participated voted in favor of us seeking a partnership and alignment with Olympus. We encourage readers to review the archived “#olympus-vote-discussion” channel in our server to gauge the quality of discussion and our intentions.
So why Fantom?
Just recently, Fantom has surpassed Polygon in terms of TVL and surpassed 100 million transactions. We believe this is just the beginning for Fantom and it will continue to outperform and create history as a chain. Investment is pouring into Fantom as its long term viability and potential as a Layer 1 / 2 blockchain continues to be recognized.
By establishing ourselves on Fantom, we intend to leverage its growing user base and capabilities as time goes on. There are two other factors that excite us as we think about a future on Fantom:
Fantom is a layer 1 blockchain that is fully compatible with the Ethereum network (so in that way acts defacto layer 2 as well) which facilitates movement of large amounts of money with very little effort or fees; and
The Fantom foundation is focussed on providing services to power smart cities — i.e. crossing the chasm from the crypto degen world to very real world applications (things like public utilities, healthcare, education). If Fantom can achieve success in any ONE of these industries, it will be able to carve itself a permanent niche and use case and drive parabolic adoption . We can envision a world where Phantom DAO allows for and powers exchange of value from crypto assets (PHM and derivatives) to real world items or value.
We are aware of other Olympus forks which have launched on Fantom and we are confident that our architectural upgrades and unique positioning will allow us to achieve our goal of long term sustainability over the decades to come - something we think is evidently lacking from these other projects launching on Fantom. We consider an endorsement from the Olympus community a powerful signal to users that we are a project that is not competing and are fully aligned with Olympus’ long term vision .
Treasury Direction
All excess treasury reserves will be split 85% to the RFV treasury, apportioned per the proposed split of backing assets, 5% to the work DAO and the remaining 10% will be allocated to the Phantom Accelerator.
Phantom Accelerator:
This accelerator has the objective of accepting participants every month via community votes. Staff and participant scouts will propose summarized opportunities to the community to vote on each month. This way the community acts as the approval committee for Phantom’s Accelerator.
The program thesis is yet to be finalized, but we will intend to keep it broad enough to include multiple themes: such as DeFi startups, NFTs, and others.
This aspect of the treasury will be clearly documented and will be provided to the community before the launch.
Treasury Assets Yields:
The code will utilize Yearn to earn a reasonable rate of return on our treasury assets in return for acceptable risk. 100% of the proceeds from these yield activities will be added back to the treasury. The goal is to achieve compound growth in our treasury asset value over time. We anticipate the trading premium (or multiple) of our treasury value to be higher, especially in the early days of the project. These interest-bearing activities will help mitigate the risk of price growth outpacing the treasury value growth.
Tokenomics and Initial Supply
Risk Free Value (RFV) and Protocol Owned Liquidity (POL) will function almost entirely as designed originally by Olympus. Phantom treasury will include more coins from the outset as proposed below:
FRAX — 60%
DAI — 25%
gOHM — 10% (with the intent being to increase this percentage over time through community votes)
FTM — 5%
Due to launching DAO-first, our initial supply and bootstrapping process will be different to most forks. These details are still TBD but our initial mix is slated to be:
Early Contributors: 15%
Investor: 5%
Olympus: 3.33% (N.B! Under the proviso that Olympus does not dispose of these tokens)
Community: 76.67%
Phantom will introduce a limit to each holder to just under 5% of total supply. If a transaction would increase the holding over said limit, the transaction would revert. Our intent here is to reduce the possibility of whale dumping (or rational fears thereof) and outsized voting influence. It is our hope that this project truly be community driven from day one and stay that way over time.
The details regarding how the community allocations are made are yet to be released due to ongoing research and to ensure fairness by avoiding any gaming of the system which is common in the industry.
Motivation
We are committed to aligning with Olympus as a community as we believe our values are shared. We are confident that both parties will benefit from this relationship through the integration of our communities.There are a number of potential areas for further collaboration between Phantom and Olympus, which can be explored at the appropriate time.
Should this proposal pass - we expect to work closely with the Olympus DAO contributors to explore how Phantom Accelerator and Olympus Incubator can mutually benefit from referring applicant dealflow to each other and supporting appropriate projects side by side.
As it currently stands, there are a couple of areas worth flagging:
Olympus’ Incubator is a natural alignment for Phantom’s Accelerator program. Phantom can be a powerful partner who can support Olympus on projects that make sense to both communities - simultaneously spreading risk and increasing diversification.
Phantom inherently increases the demand for OHM by holding gOHM in its treasury. The success of Phantom will ultimately put upward pressure on OHM’s price and ultimately increase OHM’s runway by maintaining a higher premium in the market.
Olympus directly holding 3.33% of Phantom’s supply and voting influence.
In the future, we envision ways to deepen this partnership through DAO-to-DAO swaps and other mechanisms which we will be open to exploring with both communities' input.
What else do we ask of the OHMies?
Outside of the above, it is our hope that both communities can harmoniously exist and mix with one another. Phantom already has a great number of OG OHMies involved who understand the ecosystem and are extremely supportive of this proposal.
We would like to be Olympus’ de-facto partner on the Fantom chain and continue to propagate all of the positive externalities Olympus has created over time while being more agile in our yield strategies, seeking to provide support to up-and-coming web3.0 founders that seek to broaden crypto’s reach and exposure.
Proposal
Formalize a partnership to integrate and align PhantomDAO and Olympus - by endorsing PhantomDAO as a partner project within the Fantom ecosystem. PhantomDAO will provide Olympus with 3.33% of its governance token at launch which it can use to stake and take part in the governance of PhantomDAO. Olympus commits that it will not reduce its exposure to PhantomDAO’s governance token. PhantomDAO also proposes to have 10% of its initial treasury to be held in gOHM with the intention to increase that percentage - subject to approval of community governance.
Polling Period
The polling process begins now and will run for at least 24 hours. After this, a Snapshot vote will be initiated and open for at least 48 hours.
Poll
For: Approve the proposed partnership.
Against: Do nothing.
