Token Sale Reserve Proposal

[TomTrow]

This proposal is to have up to 5% of the token supply available to sell in the event of favorable market conditions.

Overview

The improved cash position of the DAO will:

• increase its runway
• enhance its ability to attract top talent
• help to fund the continued addition of features
• invest more in the business development and customer acquisition
• continue to ramp up marketing efforts

Terms

The DAO is asked to approve:

• A maximum of 5% of FLT (50,000,000 FLT) to be put in reserve to be sold at the discretion of the Governance Committee.

The Governance Committee is highly sensitive to market conditions and plans on selling when the timing seems most appropriate. Selling can happen via OTC deals or via TWAP, VWAP programs. Because market conditions can change quickly both based on macro factors as well as project specific news, we would like to be able to move quickly when conditions warrant. We do not expect the full amount to be sold in 2025 unless there is an extremely positive event that drives continued market and token strength.

The Governance Committee will update the community quarterly as to the progress and remaining balance of tokens in this reserve.

[eponomarev]

I removed replies unrelated to this proposal

[aka_TheAC]

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[WHY I AM AGAINST THE PROPOSAL]

Even if 100% of the sales are OTC, which won.t impact the price AT ALL, for those who bought from the open market, it is crucial that the market cap remains as low as possible relative to the current price. A low market cap suggests easier price increases, which is bullish for existing holders and attractive to potential buyers.

Given the current market conditions, community sentiment, etc, and the presence of Fluence haters who are highly specialized & motivated to scare the life out every regular investor, a sudden unexpected 50%+ supply increase while the price remains the same (or worse, it goes down), would not be well received by anyone in the community. It.s especially concerning because this is not the only source of inflation for the coming months. In the eyes of regular investors, they think most of it will be sold, which would significantly lower the price or prevent it from appreciating much.

[WHAT I PROPOSE]

If there is no solution for the ,Unlock Delay Proposal, (https://gov.fluence.network/t/unlock-delay-proposal/475?u=aka_theac), considering:

. The upcoming ~3.4% unlocks for the team & VCs that will unlock daily starting from February 14th until March 14th, and another 3.5% the month after that, continuing until February 2026.
. The ~1.5% left in the treasury from the last development and funding proposal.
. If the team & VCs don.t plan to sell anytime soon.

I suggest that the next month.s team & VCs unlocks be allocated to this sale reserve. Each week, every unlocked token will be sent to the treasury. The 5% currently under discussion to be unlocked, can be allocated for the team & VCs, etc., and locked until March 2026, until all the upcoming unlocks are over.

RESULT: VCs will still be able to take profits this season if the market and the token shows strength, and the team can do so as well if they want. This would help keep inflation as low as possible.

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[eponomarev]

Can we avoid PGP signatures of every message on the forum? With all respect, makes it harder to read.

The proposal is not about the sale, but about the approval to sell at favorable conditions in the future to fund the DAO. The proposal also defines the upper boundary of the potential deal in FLT, but full amount may not be sold.

By the governance model, proposal voting and execution takes 10 days + discussion. So this proposal is necessary for governance committee to act quickly if the favorable market happens. Otherwise we can miss the train.

[aka_TheAC]

[I KNOW THIS IS GOOD]

I am sure Cloudless Labs knows best what is best for the project, there is no doubt about that. As I mentioned in my previous reply, I truly wished with every fiber of my being that you had found another method.

The proposal is more than welcome if this will make everyone and every influencer talk about Fluence, help secure Wintermute as a market maker, list Fluence on Binance; if this will speed up the adoption, as Mr. Tom recently teased about a potential pilot program for the U.S. government to use Fluence, an initiative that seems highly likely given David Sacks is interested in Fluence to succeed, Fluence being a Multicoin Capital backed project.
https://x.com/aka_TheAC/status/1881298783134187543

[I DO NOT SEE A PROBLEM]

All projects have DAO funds unlocked daily or monthly through regular vesting. With Fluence, nothing is taken from the DAO without a clear purpose and voting, which is a significant advantage. As long as almost everything is handled OTC, there should be no concerns.

. OTC means two parties exchange assets directly without using any exchange (CEX or DEX), preventing price impact.
. TWAP means tokens will be placed on the order books, and when someone buys, they will primarily purchase from Fluence.
. VWAP (Volume-Weighted Average Price) ensures that if the price surges aggressively, more tokens will be made available for purchase over time.
^ None of these methods will lower the price, as Mr. Tom mentioned, but the last two could slightly slow down price increases unless we experience a traditional altcoin season. This is why OTC would be the preferred method.

[IT IS NORMAL AND IT IS NEEDED]

Increasing the project:s cash reserves, is a standard practice for all projects. This is not money going into the team:s pockets, but the project:s treasury, benefiting everyone involved with the project, especially investors. It is crucial for the success of the project, particularly for a big infrastructure one like Fluence. Investing in a project inherently means funding its development.

[QUESTIONS]

. What price does Cloudless Labs consider a fair value for Fluence when it comes to good market conditions?
. Is this 5% part of the 12% from the treasury as stated in the tokenomics blog post?

Detached signature for the preceding post: https://t.me/aka_TheAC_signed/20

[Msaiful]

I think your previous two proposals was good for fluence also think current selling proposal could be too risky for this project. And look at current market sentiments ,retailers are too frustrating if cloudless lab attract people new or old investors it’ll be good for projects fundamental growth.