UPDATED- BIP 49: Opolis Strategic Investment

UPDATED BIP #49 - Opolis Strategic Investment Negotiated Terms

Category:
Treasury Management
Scope:
Finalize (accept or reject) the deal with Opolis based on updated terms, integrate b assets into their payroll system.
Status:
Final community decision ($WORK launched 4/22/21)

TL;DR: Although BIP-49, which asked the community for team negotiating power over a deal with Web3-PEO Opolis, passed the forum vote with a supermajority, a number of well thought out responses prevented the deal from moving forward. The core team took the opportunity to step back and reexamine the deal.

Herein are updated terms discussed between members of Badger Core and Opolis based on the thoughtful feedback received on the original BIP.

This is the last time the Opolis deal will be presented to the community, so a “No” vote here would be final.

Summary of BadgerDAO Forum “No Vote” Feedback from BIP 49:

  1. Payroll is not part of our mission to “Bring BTC to DeFi”
  2. Team lacks time, resources, and expertise to evaluate and “lead” a deal
    • “Lead” investing will attract the wrong attention to Badger
  3. Deal Terms were not clear enough to be easily understood by community members.
    • Implied valuation of $WORK didn’t make sense
    • $2M was deemed too high a sum
  4. “Sell pressure” concerns around funding the deal in $BADGER or other native assets

Overview:

Addressing each point in order:

  1. Increasing access to Bitcoin banking products is our mission. Allowing any sovereign worker to access our products quickly and painlessly fits within that mandate.
  2. The deal is a very small lift from the Badger side and Badger will by no means be the “lead” investor, instead investing alongside 10-15 other DeFi and DAO participants.
  3. The contribution by Badger has been reduced and the allocation of $WORK received has increased, making the valuation a bit more palatable. (covered in detail below)
  4. The deal has been modified to reduce any potential BADGER sell pressure

Updated Negotiated Deal Terms

1. Grant to Opolis

  • BadgerDAO makes a $1M community grant to Opolis
    • 50% USDC (unlocked), 20% wBTC (unlocked), 30% Badger (unlocked on a 4-year vesting schedule)
  1. $WORK Rewards to BadgerDAO Treasury
  • 9,350,000 $WORK Rewards from Genesis Allocation Vesting Pool
    • 20% vested/unlocked immediately; 80% vested via 4-year stream
  • 1,675,000 $WORK Rewards from Genesis Allocation Coalition Vested Pool
    • Unlocked and Vested 100%
  • 11,025,000 $WORK Rewards in Total from the Genesis Allocation
    • 3,545,000 Unlocked $WORK; 7,480,000 4-Year Vest
      1. 9.05% of the Total Unlocked Non-Treasury Genesis Supply
      2. 4.73% of the Total Unlocked Genesis Supply
      3. 3.5% of the Total Genesis Allocation
    • $WORK locked in treasuries is precluded from staking as to not take from the community
    • $WORK locked in treasuries will be held for at least one year except as deemed strategically necessary by the Board of Stewards
  1. Strategic Ally Council
    • ~15 DeFi/DAO ecosystem Strategic Allies are participating in the Opolis investment/grants round of $4-6M. The round is in the process of closing now.
    • Up to 9 Strategic Allies will be part of a Strategic Allies Council (SAC) to assist with promoting Opolis and $WORK throughout the ecosystem.
    • BadgerDAO will allocate one representative to the SAC which will meet once a month.
    • Some examples of Strategic Allies in the Round are: MetaCartel Ventures, dxDAO Ventures, Pickle Finance.
  2. Badger Community Rewards
    • BadgerDAO community members who become an Opolis Employee or Coalition Member receive a Member Bonus of 5000 $WORK in addition to any other Member incentives.
    • Individual Badgers will also earn $WORK for their individual consumption, referrals and staking through Payroll Mining growth milestones.

Final Thoughts

The DAO’s that succeed over the next few decades will do so for a few reasons: 1) they’re product focused and continually skate to where the puck is going. 2) they effectively use their balance sheet to continue to grow their business.

The decision being made here takes both of these into account and allows us to leverage our native assets in the most effective manner possible

VOTE

Do you support the newly negotiated terms of the Opolis deal for a $1MM investment?
  • Yes
  • No

0 voters

2 Likes

Updated poll here to show voters.

VOTE

Do you support the newly negotiated terms of the Opolis deal for a $1MM investment?
  • Yes
  • No

0 voters

1 Like

Big thanks to the community for the great feedback on the original proposal and to the Opolis team for working with us to get this version updated. We learned a lot from the first go around and I think we came out of it with something that aligns all participants in a better way and a process that should help us more efficiently process proposals of this type in the future.

Very excited for the opportunity to work with Opolis as part of the DeFi coalition if this passes!

5 Likes

Great work restructuring this guys. I was unsure before. Now this is a resounding yes. I think this will work out better for both Badger and Opolis in the end.

2 Likes

Hello,

Just to be clear if you are a Badger community member that isn’t in America what are the benefits from this proposal?

Any Badger Community member will receive 5000 $WORK for becoming any variety of a Member. Non-USA orgs and individuals can become Coalition Members.

1 Like

Ok thanks for the reply.

Another question I have is in regards to a potential bear market in the not-so-distant future. Given this part of the cycles notoriety for burying fledgling organisations before they begin, do you have a plan for such a turn in the market? Why should people keep using your service when it is likely more prudent to have USD?

Following this, what value will the $WORK in the treasury have given the DAO’s status as a coalition member (correct me if I’m wrong) grants no entitlement to a share of the 1% fee you charge nor voting rights?

I think you’re missing the core of what Opolis is and does. We are the employment compliance stack. Bull or bear the BUIDLers gonna build, and they rely on the Opolis Employment Cooperative for healthcare, payroll, compliance, etc.

A lot of DAOs pay out in stables and we’re going to continue processing their payroll. We also have many members who don’t do any crypto- and just do USD payroll in/out.

In a bear market, folks can use the optional crypto payroll to accumulate cheap corn. Our service is necessary and bear-proof. That’s one of the best parts of being the bridge between Web2 and Web3.

With regards to profit-sharing, the 1% community fee comes out of each invoice and as that reaches a critical mass and becomes raw profits, yes, coalition members holding $WORK will share in those profits.

2 Likes

Great thanks for the clarification

1 Like

Any Badger Community member will receive 5000 $WORK for becoming any variety of a Member.

How to prove that? Any detail process?

Can you confirm if the Opilis product is only for freelance type of workers and not corporations?

This is a huge yeah from me.

In the nicest way possible, if this doesn’t get through I would consider leave the DAO because clearly its full of idiots.

The Opolis Employment Commons cooperative is designed for the independent worker to have employment self-sovereignty. We help freelance workers wrap themselves in a corporate structure and our members are all single-member LLCs that elect C or S corp status at the federal level, so the question is kind of incongruent.

If the question is about larger corporations, we’re actually in the process of decentralizing a number of larger corps and have already helped the FIO Protocol 100% decentralize into the ether.

If your employment is owned by an employer, you aren’t self-sovereign, your benefits aren’t portable, and the important decisions are made by them, not you.

We help our members every step of the way through this process, it isn’t as daunting as it sounds.

Correct, any Badger Community member who joins as an Employee Member or Coalition Member would receive a bonus of 5000 $WORK in addition to and other Member incentives (which is 500 $WORK until Wednesday at noon MST) as is mentioned in the OP.

I’m not sure what sort of proof you’re looking for, there will be core Badgers working with us, but in terms of process the additional $WORK would appear on your Member dashboard. From the dashboard you’ll be able to withdraw the tokens to a MetaMask.

https://snapshot.org/#/badgerdao.eth/proposal/QmdJy8eCDCLzBvRMnHNxbDzZ3B8oCP6huju1xfkfe7YM9A

1 Like

I have huge reservation on this deal.
I’m not sure this is a suitable opportunity for Badger guys.
It doesn’t really align with Badger’s stated mission nor is this something that has much scope.

Also, is it me or do people just vote yes for everything here?

2 Likes

so did this BIP pass or not? the vote seems very evenly split between yes/no/abstain