This proposal initializes the grant of FLT tokens to holders of FPT token.
Determination of benefits:
FPT holders outside of the United States will be entitled to issuance of FLT, as set forth below in greater detail.
FPT holders who are within the United States shall be entitled to a refund of their purchase price in USD equivalent (stablecoin) in connection with their purchase of FPT tokens. FPT sale was not allowed for the United States residents and Fluence DAO canât change it.
Terms:
FLT should be granted with x10 multiplier: 1 FPT = 10 FLT. Initially in 2017, 6 million FPT were sold to represent 6% of future token supply, but the Fluence DAO minted 1 billion FLT.
Granted FLT will be subject to 1 year lock up from the date of claim.
Claiming process:
The DAO governance committee will be responsible for processing claim requests for both FLT grants and fiat refunds.
60 million FLT will be allocated to the Fluence DAO multisig wallet, controlled by the DAO governance committee.
The option to claim FLT will expire after five years. Any unclaimed FLT remaining will be returned to the Fluence DAO treasury.
Eligibility:
Proof of ownership of a wallet that holds FPT must be required for all claims.
In order to be eligible for FLT issuance, holders must submit proof of residency outside of the United States.
Access to the wallet holding FPT is required; if wallet access has been lost, the claim is not valid.
FPT holders who took the buyback in 2018 are ineligible to claim FLT.
Details about where the US restriction and lock up are coming from:
The original FPT Tokens were not registered in the U.S. and were not sold to purchasers in the U.S. in compliance with Regulation S of the Securities Act of 1933. Likewise, FLT tokens are not registered in the U.S. and until there is favorable regulatory clarity in the U.S., any direct sale of FLT by the DAO can be made only in compliance with Regulation S. Because issuing FLT tokens to FPT holders can be considered by the SEC as a sale (not a grant), in order to continue the projectâs compliance efforts, FLT tokens issued to FPT holders would only be issued to holders outside of the U.S.
Additionally, prudential compliance with Regulation S means that tokens must be locked for a year from the date of claim to prevent potential flow-back into the US within the first year after claim.
INSTRUCTIONS FOR FPT HOLDERS:
Submit your wallet address holding FPT and your Proof of address to KYC portal (choose âIndividualâ).
Governance committee will verify the data and add your allocation at FLT Grant smart contract. In case of any questions Governance committee will reach out to your specified email.
You will be able to see your allocation in your wallet
You will be able to withdraw FLT in one year after allocation creation.
Note: Initial claims may take 1-2 weeks as smart contract has been developed and is being audited before deployment.
The original FPT Tokens were not registered in the U.S. and were not sold to purchasers in the U.S. in compliance with Regulation S of the Securities Act of 1933.
As we know, they were. Otherwise you wouldnât have to refund them. And excluding US persons to begin with is much more important than the flowback restriction.
Likewise, FLT tokens are not registered in the U.S. and until there is favorable regulatory clarity in the U.S., any direct sale of FLT by the DAO can be made only in compliance with Regulation S.
Even if FLT was sold by the DAO, you specifically said that the DAO is setup as a Swiss association to prevent liabilities against DAO members. So Reg S doesnât apply.
Because issuing FLT tokens to FPT holders can be considered by the SEC as a sale (not a grant), in order to continue the projectâs compliance efforts, FLT tokens issued to FPT holders would only be issued to holders outside of the U.S.
Besides the DAO not being a US based entity, Iâm not aware of a single case in which a simple token swap would have been considered a sale. Can you name one?
Additionally, prudential compliance with Regulation S means that tokens must be locked for a year from the date of claim to prevent potential flow-back into the US within the first year after claim.
âDistribution compliance periodâ means a period that begins when the securities were first offered to persons other than distributors in reliance upon this Regulation S (§ 230.901 through § 230.905, and Preliminary Notes) or the date of closing of the offering, whichever is later, and continues until the end of the period of time specified in the relevant provision of § 230.903, except that...
I donât think any of the exceptions apply. The compliance period was over in 09/2018.
Let the record show that at least 80-90% of participants in the previous âdiscussionâ were NOT in agreement with your proposition and single sidedly deciding not to honor the promised bonus, and the DAO was not a discussion between parties at all.
We (the (FPT holders) discussed our position, you (Fluence Labs) came in, made your statements which everyone argued against asking for either proof, information or reasoning, then after approximately a week, without giving any suitable or reasonable answer on their questions you created a new thread in which you literally copied and pasted your initial proposal which no one agreed to and created the proposal on tally for voting on, in which the class of token holders (FPT Holders) which it affects can not even participate in the vote.
This DAO doesnât work and that the team does not care for interest beyond their own to the extent that they are willing to go against their own agreements and promises made over 6 years ago.
Fluence Team: Judge, Jury and Executioner. / Fluence DAO: The farse for their âvotingâ activities.
The DAO is powered by voting via FLT and FLT-LV as stated in documentation. Everyone had all the chances to vote. If you didnât vote - thatâs your choice.
This topic is closed as proposal has passed. Further instructions for FPT holders will be provided by the Governance Committee.