AavegotchiDAO has passed a proposal to close its GHST Bonding Curve, a decision that will see the depegging of GHST from the DAI token.
Voting on the proposal, which sought to close the GHST Bonding Curve in a controlled way, ended on Sunday. Snapshot data show that the proposal received more than 1,600 votes, with over 90% of the voting power backing the idea.
According to the proposal, the GHST Bonding Curve had “outlived its initial purpose” of providing a trustless way for Aavegotchi to “bootstrap development funding and provide initial liquidity for the GHST/DAI pair.” With nearly 20M DAI in the curve, gldnXross argues that the DAO had generated enough funding to continue development and sustain liquidity. Furthermore, there was a need to derisk GHST’s reliance on MakerDAO’s DAI stablecoin.
Closing the Curve in effect concludes a 2.5+ year DAICO (DAO+ICO) token sale. All DAI in the GHST Bonding Curve at the time of closing will transform the DAI from being half of a simple liquidity pool into actual Aavegotchi funding.
That said, the DAI that will be released from closing the bonding curve will be evenly distributed to Pixelcraft Studios, the DAO treasury, protocol rewards, and liquidity using a 25/25/25/25 sharing formula. The proposal had earlier suggested a 40/40/20 distribution to Pixelcraft, the Foundation, and liquidity, respectively. However, the community agreed to distributing the Curve reserves among the four pillars of the ecosystem.
Commenting on the equal sharing formula, one member of the DAO opined that “asset holders [had] been totally overlooked in all the recent discussion in turning off the curve.” He added:
The simplest solutions are often the best and an equal split between liquidity, PC, DAO and asset holders is the most equitable and courteous proposal currently available.