The Tokemak Core 3 Event is starting on May the 2nd and we have devised a plan to maximize our chances of winning while limiting sunk costs
Goals :
Win a Tokemak Reactor to raise liquidity opportunities;
Diversify treasury with a TOKE swap;
Use the event as a large awareness campaign;
Avoid overspending and create a sunk cost situation.
Context :
Paladin has been working on deepening its liquidity and closing partnerships to deepen its synergies with major protocols who are successfully creating governance wars.
Our smart contracts are now one of the biggest Aave holders
Warden is managing 5M veCRV and we’re in the process of requesting a gauge.
Tokemak can only be our next destination. Core 3 is an opportunity to attract the attention of the tokemechs, win an OTC swap with their DAO and kickstart the building of an influence market for them.
Strategy:
Our current main worry is overspending during the campaign and end up with large DAO sunk costs (ie: no reactor and major spendings). For this reason we simply cannot publicly bribe users to vote for us.
It is however important to see the impact of bribing on the event’s outcome. In round 2, three out of the five winners won by bribing. They spent over 500,000$ each to win a reactor. These amounts are simply too high for the current budget of our DAO. And public bribing has led to significant dumps later on, which would be net bad for us.
During the past round, the bribing average on Votemak was 0.12$ / vote. So we’ve been contacting a few DAOs to arrange OTC deals with actors who would be incentivized to not dump the PALs distributed.
The biggest part of our campaign strategy is going to be on the marketing front. We’re the project that is offering the most to Tokemak and we just have to make it obvious enough to get the community vote.
Also, there’s a surprise for those who vote for us, but me no leak.
Sustainability :
We will hold a PGP to confirm the spending of the PALs for the OTC deals;
No additional PALs will be allocated to avoid a sunk cost situation;
Dev time for the technological solution that will be introduced;
If you tell me the secret, I promise I won’t repeat it.
It’s great to see that the team is coming up with creative ways to avoid the high cost and non guaranteed outcome of bribing.
I’m not entirely clear on the proposal though. Can you please clarify if you are suggesting an OTC swap directly with Tokemak, which would then effectively bypass the Core event? Or are you saying that we would do OTC swaps with different DAOs that are Toke holders and who could vote for us during the event?
Ok, great. How many other DAOs are we having talks with?
APWine controls 43k tToke, but that’s still far from the 6.4M votes they gathered to secure the 5th spot in the Core2 event. (I assume 1tToke = 1 vote?)
Agreed - getting in the TOKE reactor is the next logical step and a priority. I think the question is how much are you thinking we will need to OTC with other DAOs?
Also a more concrete explanation of how we will leverage the reactor would be helpful. I assume many PALs are unfamiliar with Tokemak.
F-yea. Tokemak could be a major catalyst for the next stage of Paladin’s growth.
We have seen its efficacy with other partnerships and past C.o.R.E. events such as FXS, SUSHI, OHM, ILV, et al. All have seen a near-term jump in token valuations.
I agree with the team’s intent to “win a Tokemak Reactor to raise liquidity opportunities.” This will massively benefit the DAO - in terms of liquidity, but also marketing and new-user onboarding.
Best of luck, let us know how we can best support you.
