BIP 103 - Continue Restitution

[FreddyTheFilosopher]

@FreddyTheFilosopher

TLDR;
BIP 103, as proposed, would allocate 1m BADGER, $3.5m, to a continuation of the restitution program that would run for 12 months. This creates a $3m shortfall in DAO funding through 2025 and jeopardizes the eBTC product roadmap. To mitigate this impact, it has been proposed that 1m BADGER tokens are minted and allocated to the restitution program.

Treasury, Roadmap and Token Considerations
The DAO Treasury Council has managed the treasury to allow for execution of the eBTC roadmap while maintaining consistent token treasury controlled liquidity (TCL) through 2025.

If the BIP passes without the minting option, the ability of the DAO to complete the eBTC roadmap, maintain adequate BADGER market liquidity and/or adequately seed eBTC liquidity is compromised. This could negatively affect eBTC adoption and the BADGER token price…

Since BADGER token price appreciation is expected to be the primary method for hack victims to recover their lost funds, the restitution proposal may be counterproductive.

Background
In 2021 Badger suffered a hack. Users lost BADGER governance tokens and also tokens deposited in to the Badger protocol.

Since 1m BADGER were allocated to restitution, it is now more difficult for the Treasury to make meaningful investment decisions without a BIP. This would give the Treasury more flexibility.