CIP: <to be assigned when moved to phase 2>
title: Amendment Balancer & Cow Protocol Strategic Partnership – Launching CoWAMM Pools
author: karpatkey
status: Draft
created: 2024-08-07
TL;DR:
At the request of the Balancer DAO, we propose amending CIP-45 to remove the terms related to the token swap outlined in the paragraph “Incentive Alignments: Token Swap and Additional BAL Rewards” from the partnership agreement.
Motivation:
With the imminent launch of CoWAMM pools, the Balancer DAO conducted an internal reevaluation of the various terms discussed in BIP-628 (the equivalent proposal to CIP-45 on the Balancer forum). Multiple events and changing market conditions have altered the availability of BAL tokens for the DAO since BIP-628 was written. The treasury token swap requirement of $2.5 million worth of BAL represents a significant portion of the DAO’s current BAL runway. In light of this, karpatkey released a budgeting report for the second half of 2024.
There is no intention by the Balancer DAO to slow down or impede the CoWAMM launch. However, since CIP-45 mandates that both DAOs initiate the treasury swap at launch, we believe this amendment is the most straightforward solution to remove the treasury token swap from the agreed terms. These terms may be revisited in the future, and if so, a new CIP will be introduced. All other terms referenced in CIP-45 remain unchanged.
It is worth noting that BIP-673, an equivalent proposal, has already been posted on the Balancer forum.
For reference, this is the specific part of the agreement that will be removed upon the passing of this proposal: