For the last several months, we have been operating in accordance with our baseline plan that we established earlier this year in April. Today, we present a proposal that seeks to extend that baseline plan through the end of March 2027 and allocate the necessary resources to fund essential services during this time period. Rejection of this proposal will necessitate a complete shutdown of Hifi DAO and put the protocol into a “withdraw only” state. We believe that extending the terms of our baseline plan gives Hifi DAO members the greatest opportunity for success.

To this end, the core team will put up for consideration a proposal that includes the following:

• Deploy a new market that will mature on March 26, 2027.
• Burn the 25M HIFI tokens that were minted as a part of HIP 15.
• Update terms of HIP 6 agreements to be compatible with our baseline plan, including a possible future wind-down scenario.
• Allocate 800K of USDC for essential services through March 26, 2027.
• Continue to support ETH and the existing RWAs as collateral.

Essential Services Resource Allocation

Matching the same terms outlined in our previous proposal that established the baseline plan, this proposal allocates 800K USDC for ongoing support and maintenance of our outstanding obligations through the end of the proposed March 26, 2027 market. The essential services that will be provided are limited to DAO administration and accounting, hosting and maintenance for the blog, website, web app, forum, and liquidation bots. Explicitly absent in this arrangement are new marketing and product development efforts.

Contingency Plan

• If the vote on this proposal fails to pass or is rejected, the existing baseline plan remains in effect, and we will move forward with a final wind-down of the protocol and DAO.

Continuing Operations:

• Maintain support for ETH and existing RWAs as collateral.
• Continue compounding earned interest within the protocol.

Upon approval:

• Execute deployment of the new lending market.
• Allocate specified financial resources for essential services.
• Enter into updated service agreement with core team.