CIP-47: Funding for the purpose of facilitating the listing COW token on CEXs

Governance Closed Proposals
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CIP: 47
Title: Funding for the purpose of facilitating the listing COW token on CEXs
Author: @middleway.eth @notsoformal
Status: passed
Created: 2024-06-19

Simple Summary

This proposal seeks to allocate 1 million USD equivalent in COW tokens and stablecoins for the purpose of facilitating potential listings on centralized exchanges (CEXs). The allocation will be used to cover listing fees and marketing allocations required by these exchanges.

Motivation

Listing COW tokens on major CEXs is a significant step towards enhancing liquidity, visibility, and accessibility of the COW token and the CoW ecosystem. While we cannot guarantee listings, having this budget allocated will support ongoing and future negotiations with interested exchanges.

Specification

This proposal requests the allocation of 1 million USD equivalent in COW tokens and stablecoins from the CoW DAO treasury to be earmarked for CEX listing fees and listing-related marketing activities. These tokens will be managed, in a dedicated subsafe, by the CoW DAO treasury team and disbursed as needed to facilitate the listing of the COW token on centralized exchanges.

The exact amount of COW tokens and stablecoins can be decided by the treasury team, but cannot exceed $1m USD equivalent in total, and cannot exceed 200k USD in stablecoins.

Additionally, the treasury mandate shall permit the use of any intermediaries or payment services that may be required for the CEX listing processes.

The key points of the specification are:

  • Total Allocation: 1 million USD equivalent in COW tokens and stablecoins (up to 4 million COW tokens and 200k USD in stablecoins)
  • Purpose: CEX listing fees and marketing allocations
  • Management: CoW DAO treasury team
  • Disbursement: As required by the listing agreements with CEXs
  • Termination: Any funds that were not used for the purpose of listing by 2025-06-31 should be returned to the CoW DAO Safe.

Rationale

Centralized exchanges often require a token allocation as part of the listing process, as a listing fee, and / or marketing fee and marketing allocation to promote the token to users on their platforms. Allocating these tokens in advance will streamline the negotiation and listing process, making it easier for CoW DAO to secure listings on major centralized exchanges. This approach aligns with CoW DAO’s values of promoting liquidity, user accessibility, and the growth of the COW ecosystem.

Alternate designs, such as negotiating without a pre-allocated budget, were considered but deemed less effective due to the competitive nature and time sensitivity of exchange listings and the benefits of being prepared with a dedicated allocation.

Execution

  • Transfer of 4m COW tokens from CoW DAO to the Treasury team Safe

  • Allocation of 200k USDC from the treasury assets by the treasury team

Safe Transaction Data

{
  "version": "1.0",
  "chainId": "1",
  "createdAt": 1719980859723,
  "meta": {
    "name": "Transactions Batch",
    "description": "",
    "txBuilderVersion": "1.16.5",
    "createdFromSafeAddress": "0xcA771eda0c70aA7d053aB1B25004559B918FE662",
    "createdFromOwnerAddress": "",
    "checksum": "0x0767b3f8728cbf6f2ad47316f9d5b458da7c5c6ef97987b11fa4474292565614"
  },
  "transactions": [
    {
      "to": "0xDEf1CA1fb7FBcDC777520aa7f396b4E015F497aB",
      "value": "0",
      "data": null,
      "contractMethod": {
        "inputs": [
          {
            "internalType": "address",
            "name": "recipient",
            "type": "address"
          },
          {
            "internalType": "uint256",
            "name": "amount",
            "type": "uint256"
          }
        ],
        "name": "transfer",
        "payable": false
      },
      "contractInputsValues": {
        "recipient": "0x616dE58c011F8736fa20c7Ae5352F7f6FB9F0669",
        "amount": "4000000000000000000000000"
      }
    }
  ]
}

Tenderly Simulation

[Link to Tenderly simulation]

Snapshot

CoW DAO Snapshot vote link

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2

Notice about the Proposed Transaction Execution for CIP-47

Dear CoW DAO Participants,

We regret to inform you that a mistake has been identified in the transaction data proposed on Snapshot for CIP-47. The proposed transaction details do not fully match the intended transaction. Specifically, the amount of COW tokens to be transferred was incorrectly scaled by 10^18. As a result, the transaction is expected to revert when executed through the oSnap module.

Given the clear intention of the proposal, we propose that signers initiate and execute a new transaction with the correct amount of COW tokens to be transferred to the Treasury Safe.

To mitigate the risk of similar errors in the future, we suggest implementing the following measures:

  1. New oSnap Snapshot Plugin Version: We will propose a future CIP to introduce a new version of the oSnap Snapshot plugin. This updated plugin will automatically include a Tenderly simulation of the proposed transaction on the Snapshot CIP page - for the convenience of verifying it.

  2. CIP Template Revision: We will revise the CIP template to exclude transaction data and Tenderly simulation. Previously, signers were responsible for replicating the transaction from this data. Moving forward, CoW DAO will emphasize direct verification of the proposed transaction on Snapshot.

  3. Forum CIP-Draft Section: We will include a section in the forum CIP-Draft template requiring a text description of what the transaction should achieve.

  4. Mandatory Verification Reminder: We will add a bold line, mandatory to be included in the CIP text: “Transactions intended for execution on CoW DAO’s Safe are included using the oSnap plugin, to later be executed using the oSnap module. Voters, please verify its content and the corresponding Tenderly simulation independently, cross-checking with the intended purpose of the transaction described in the CIP text.”

These steps are designed to enhance CoW DAO’s participants verification process and ensure the accuracy of future transactions. We appreciate your understanding and cooperation in addressing this issue.

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