# CCO3 v1.1 Update Proposal

CCO3 v1.1 Update Proposal

Problem statement:

Market buying amounts of HAUS greater than 1ETH without significant price impact is now possible, thanks to the ~$2MM liquidity pool on Balancer. The current transmutation rate creates a possibility for CCO3 contributors to receive less HAUS for their ETH than they might otherwise if they ragequit the CCO3 DAO and bought HAUS on the open market. This is suboptimal, since it’s important to our continued, collective success that
A) CCO3 contributors receive a fair value for their ETH, and
B) CCO3 contributors stay in the CCO DAO for the duration of the CCO timeline.

To address this suboptimal arrangement, we would like to propose an amendment to the terms of the CCO3 we believe will enable contributors to receive fair value while staying a part of the CCO3 DAO.

Current state:
CCO3 transmutations are scheduled to occur at a ratio of 100 HAUS to 1 ETH (0.01 ETH per HAUS).

Proposed change:

  • Prior to a scheduled transmutation, DAOhaus will calculate the 60 day time-weighted average price (TWAP) of HAUS in ETH terms
  • IF the 60-day TWAP of HAUS is < 0.01 ETH, THEN ETH will be transmuted for HAUS at the ratio (price) of the 60-day TWAP
    • IF the 60-day TWAP of HAUS is <0.005 ETH, then ETH will be transmuted for HAUS at a ratio of 0.005 ETH per 1 HAUS
  • IF the 60-day TWAP of HAUS is > 0.01 ETH, THEN HAUS will be transmuted for HAUS at a rate of 100 HAUS to 1 ETH (the original terms of the CCO).
    • Therefore, CCO3 contributors still benefit if the price of HAUS moves in the other direction.

The overall intended effect of this proposal is to reduce the negative volatility risk for CCO3 contributors, while preserving the positive volatility opportunity.

Next steps:

  • Proposal is made to the DAO (this post)
  • Feedback is gathered and proposal is amended, as needed
  • Final proposal goes to a Snapshot vote of CCO3 contributors
  • If proposal passes, then transmutation 2 and 3 will take place using the calculated rates as determined by proposal.
  • If proposal fails to pass, then transmutation 2 and 3 will take place using the fixed 100 HAUS to 1 ETH rate.
  • NB: schedule for the upcoming transmutation
    • TRANSMUTE 2: June 2022
    • TRANSMUTE 3: September 2022

This is honestly above and beyond what any other project is willing to offer its community contributors. DAOHaus doesn’t have to do this, but the fact that they are submitting this proposal speaks volumes to the integrity of the core team.

Really just want to say thank you for your mindfulness, and please let us community contributors know how else we can continue to support you. I support this proposal!