The MetaDAO neighborhood as we speak rejected a proposal to mint $6 million price of META tokens and promote them to 2 enterprise capital companies, DBA and Variant, at a reduction of roughly 30%.
MetaDAO, the Solana-based governance platform for decentralized autonomous organizations (DAOs), closed its voting as we speak, October thirteenth, with a quantity of over 878,800 USDC, demonstrating clear opposition to the settlement, which might dilute present holders by roughly 7-8%.
MetaDAO voting outcomes. Supply: MetaDAO
If the deal passes, roughly 1.47 million new META tokens shall be minted, and the 2 VC companies will every have the ability to buy $3 million price of META at $4.0795 per token, roughly 30-40% lower than the market value throughout the voting interval. The MetaDAO crew mentioned in its proposal that the tokens would have been fully unlocked, including that it “doesn't consider in locking the availability away from anybody apart from the crew.”
The small crew behind MetaDAO (two founders, one part-time designer, and one X-intern) mentioned the proposal is meant to increase the runway and allow employment potentialities. DAO at the moment has about $1.8 million in money, sufficient to final about 24 months, the voting abstract states.
Not like Snapshot, the place voting is completed purely based mostly on token weight, MetaDAO makes use of a Futurkey system that mixes prediction markets and governance. Merely put, the neighborhood can vote on high-level targets, and the market helps predict which choices will obtain these targets, permitting the DAO to make extra data-driven selections moderately than merely counting votes.
In August 2024, MetaDAO raised a complete of $2.2 million in a funding spherical led by Paradigm.
“Fallacious proposal construction”
Earlier than voting ended, the deal drew criticism from some neighborhood members who argued it gave too giant a reduction to VCs. After the MetaDAO neighborhood rejected the vote, DBA co-founder Jon Charbonneau wrote within the Telegram group:
“(…) I feel the 2 largest high-level issues with our preliminary proposal have been: 1) It was an excessive amount of of a reduction to the spot value on the time of posting. 2) The method of posting sure OTC buying and selling phrases was actually simply the improper proposal construction right here.”
Charbonneau added that future capital raises might comply with a special mannequin, with groups setting value caps and finalizing execution in each instructions, just like how conventional boards deal with fairness points.
Gabriel Shapiro, founding father of crypto-native authorized tech group MetaLeX Labs, commented on the vote in as we speak's X Publish, saying that MetaDAO is “the one place I see the DAO ethos truly thriving,” including:
“I can’t think about one thing like that taking place with as we speak’s Ethereum DAO. They’re fully captured by the skilled governance class.”
Following as we speak's vote outcomes, META's value rose over 16% to over $6.95. This was additionally pushed by MetaDAO's earlier success with UMBRA, Solana's privateness coin, which was oversubscribed by 50x throughout the preliminary coin providing on MetaDAO.
24 hour value chart of META. Supply: CoinGecko
Defiant has reached out to MetaDAO for additional touch upon the now-rejected transaction, however has not acquired a response as of press time.
