[Temperature Check] HIP 2: Explore Private Sale Legal Options

Background

The Hop Foundation, based in the Cayman Islands, acts as a legal layer for Hop DAO and is bound to the will of HOP token holders as determined by token vote. The community has expressed interest in Hop DAO conducting a private sale of HOP which the foundation should document appropriately under Cayman law.

Proposal

Hop DAO authorizes the Hop Foundation to explore legal options and documentation so that should Hop DAO vote to conduct a private sale, the Hop Foundation is prepared from a legal perspective to execute it.

Motivation

Ensure the Hop Foundation is prepared if the Hop DAO elects to conduct a private sale of HOP.

Voting

Yes - Authorize Hop Foundation to explore private sale legal options

No - No action

2 Likes

I have questions. Authorization for exploring legal options and documentation to allow for conducting a private sale is one thing; actually carrying out such a private sale is another. I am in favour of authorizing the process of exploring the legalities, etc, of a private sale, but I would caveat that by saying any private sale should require at minimum the following information for DAO consideration:

(1) Why?
(2) Who?
(3) When?
(4) For how much?
(5) From where?

I assume this would be an allocation from the treasury. In that regard, doling out tokens affects governance and alignment of principles. A private sale must be mutually beneficial. HIP-2 is not the place for this, and I donā€™t want to put the cart before the horse, but we should be flagging this issue for later consideration.

3 Likes

Yes, all of these details should be included in any proposal involving a private sale. I agree that these important choices for the DAO and should be carefully considered.

Hey @cwhinfrey

Can you link where is that interest expressed?

Just to be clear this proposal is just so that the foundation explores how to do a private sale of HOP? Not a vote to do the sale or not. Correct?

Would this exploratory research cost anything? If yes would the DAO need to cover it? If so we would need a budget proposal.


Another important thing as I said in the other thread is that this is way too fast. Please letā€™s come up with a proper governance process. Check the governance rules in ENS/gitcoin/optimism.

Canā€™t have a temperature check with 1 comment and then 2 days later open a 3 day snapshot vote for anything thatā€™s even remotely important.

Primarily this thread and was touched on in a couple other places.

Yes, exactly. As PaperImperium said here, it may have been a bit formal for this to go through a proposal since thereā€™s no budget or binding consequences. Pre-authorizing the foundation to do certain things could help speed things up in the future.

2 Likes