Prop 32: Budget increase and restructure of Liquidity Council
OBJECTIVE:
The purpose of this governance proposal is to bring about strategic changes in the composition of the Liquidity Council and its allocated budget in order to further strengthen the operations of the Council and ensure the amount of liquidity being provided to projects is reaching the desired levels. In the current framework, there’s a general cap of liquidity provisioning of 250,000 ARCH per request without requiring passing of on-chain voting. It’s been notable that the current limits provide little liquidity to projects and limits their ability to reach the needed levels of volume of ARCH.
After receiving initial feedback from the community on the past governance calls, and in particular on governance call of 11/9, the Liquidity Council, on behalf of the community, proposes the following changes:
Liquidity Council Restructuring:
Jordan Xavier “JXR”, current member of the Liquidity Council, will be replaced. An additional member representing the community will be added to the Liquidity Council so that there is equal representation in the Council between the community representatives and Archway core contributors. By adding one more member, the composition of the Council will be as follows: 3 community members, 2 Phi Labs representatives and 1 member from the Archway Foundation. The MultiSig will require a 4/6 passing threshold. Budget & Liquidity Top-Up:
We propose that the maximum funding allocation per project be increased to $300,000 worth of ARCH spread out in up to 3 requests or grants per project.
The foregoing will apply retroactively to current liquidity recipients. This means that a one-time liquidity injection of ARCH will automatically be provided to each existing approved submission, up to the maximum allocation of $300,000 per project. Existing allocations of 250k ARCH will be topped up to the current market value of $100,000 in ARCH up to this limit.
The overall budget of 5,000,000 ARCH of the Liquidity Council Pool will be increased to $1,000,000 USD worth of ARCH and funds will be transferred from community pool progressively as more capital deployment is approved by the Council.
Execution of Liquidity Provisioning:
Technical calls shall take place with each team post-submission approval to ensure the transaction can be formatted properly to try to speed up on-chain allocations. Implementation Plan:
*** Liquidity Council Restructuring:**
We will advertise the open positions within the Liquidity Council over Discord and Archway’s social media. Any interested candidates who demonstrate to be an active and non-conflicted participant within the Archway community can volunteer himself/herself in the forum. Liquidity Top-Up:
The funds for the liquidity injection to current approved projects will be sourced from the Liquidity Council’s community pool upon passing of this proposal.