1. Summary
This proposal seeks to revisit the idea of enshrining an eternally locked foundation of protocol-owned liquidity (POL) for BOTTO on Ethereum mainnet, also known as Botto's Bedrock, vis-a-vis Uniswap V3 using UNCX's V3 locker.
This bedrock layer of permanently locked liquidity for BOTTO would both complement and reinforce Botto's story as the first immortal AI artist built on Ethereum, whereby continual and seamless accessibility to the token onchain is integral to interacting with and training the artist.
Furthermore, the channeling of associated swap fees from this bedrock layer of POL as supplemental revenue for the DAO treasury would be enabled, thereby advancing Botto's operational sustainability.
2. Rationale
Enshrining Botto's Bedrock would create an immutable base layer of liquidity onchain for upholding Botto's long-term viability, akin to how a geological bedrock provides the foundation supporting all above it:
The proposed bedrock thus creates a balanced approach to the DAO's oversight of POL that establishes a permanent foundation of liquidity for BOTTO on Ethereum, while preserving the DAO's ability to adapt to future opportunities.
Additionally, this builds community confidence that's necessary to enhance BOTTO's broader market appeal and by extension its trading volume on DEXes, which are metrics considered by CEXes in potential listings.
Furthermore, the associated trading fees of the permanently locked POL will advance Botto's autonomy through self-generated and supplemental revenue that flows back to the DAO treasury to support Botto's continued artistic development.
Moreover, this can advance Botto's visibility because "Botto's Bedrock" offers memorable, meme-worthy branding, and positions Botto as an organic, evolving artistic entity.
Lastly, progressive decentralization is enhanced and a data-driven approach to evaluating the impact of Botto's Bedrock can be applied before considering expansion of permanent POL in the future.
3. Proposal Specifications
Lock Amount: 10% of Botto's total POL on Ethereum mainnet.
Platform: UNCX V3 Liquidity Locker for Uniswap V3.
Position Type: Full-range Uniswap V3 (to mirror Uniswap V2 efficiency without active management).
The Uniswap V3 position would first be created on Uniswap with a fee tier set as 1% to augment supplemental revenue for the DAO treasury; the higher proposed swap fee accounts for the fact that the underlying POL is permanently locked, so independent liquidity providers can simultaneously offer concentrated liquidity on top of this full-range bedrock layer too. The corresponding NFT position would then be permanently locked using UNCX's V3 locker.
Lock Type: Eternal Lock (permanent/non-reversible).
The "Lock Eternally" setting would be selected on UNCX. Botto DAO's designated wallet would be the "lock owner."
Fee Collection: Automated accrual to the DAO treasury wallet.
Trading fees from the permanent POL position would be collectable by the "fee collector" and/or the "additional collector" addresses. Botto DAO stewards can designate such addresses as wallets controlled by the DAO treasury; this can be updated by the "lock owner" in the future too, as needed.
Note that any future updates to make trading fees collectable by a wallet that is not controlled by the DAO treasury would require prior DAO approval.
Timeline: Implementation as soon as possible upon approval.
Future Optionality: can propose permanent POL expansion in the future via separate governance proposals with consideration of metrics such as improved token visibility, trading volume, user acquisition, etc.
4. Criteria of Success
Technical:
Successful eternal lock deployment.
Transparent on-chain verification.
Strategic:
Increased protocol stability and enhanced narrative resonance.
Growing supplemental revenue for Botto.
Broader market recognition and increased trading volume.
5. Disadvantages/Risks
Lock Permanence: truly irreversible. Nevertheless, this is counterbalanced by the remaining 90% of POL that is not permanently locked, enabling market adaptation.
Technical Complexity: fee collection methodology to wallets controlled by the DAO treasury may need periodic adjustments/monitoring. As noted above, any changes to this approach would require DAO approval in the future.
