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Summary

This proposal authorizes the transfer of 30,000,000 LCAI from the Treasury to the Quantum Counsel LLC Wallet (0x8fECcC2cc21B901E11620070B19A51F50e409130), controlled by Quantum Counsel LLC acting as the Ministerial Agent and Administrator of the LCAI DUNA, for the limited purpose of supporting liquidity provisioning and related market-making requirements associated with approved exchange listing efforts.

Assets transferred pursuant to this proposal are expected to be maintained within segregated custody arrangements, including a dedicated client trust wallet structure.

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Motivation

As Lightchain AI (LCAI) continues pursuing exchange listings, certain exchanges may require initial liquidity provisioning and participation of external market makers as part of their onboarding and trading requirements.

These liquidity arrangements are generally intended to support orderly trading conditions, market depth, and operational readiness upon listing.

BitMart has requested an initial liquidity arrangement for an external market maker account consisting of an approximately 50/50 allocation of USDT and LCAI, currently anticipated to be approximately $15,000 USD equivalent of each asset, prior to issuance of a formal listing agreement. Similar liquidity requirements may arise with additional exchanges currently under review, including MEXC and Tapbit.

Following establishment of the external market maker liquidity arrangement, the exchange is expected to provide a proposed listing agreement for review. If the DAO ultimately does not approve a proposed listing agreement or associated listing fee, liquidity assets associated with the market-making arrangement may be retained within the segregated custody structure for reuse in future approved exchange listing efforts or otherwise returned consistent with the scope of this proposal.

If the DAO elects to proceed with a proposed BitMart listing agreement following review, BitMart is also expected to require an additional approximately $30,000 USD listing fee, which would be subject to separate DAO approval pursuant to the limitations of this proposal.

Quantum Counsel LLC has now submitted exchange listing applications for Lightchain AI (LCAI) to BitMart, MEXC, and Tapbit.

Quantum Counsel LLC may convert portions of transferred LCAI as necessary to satisfy approved liquidity and market-making requirements associated with exchange onboarding and trading preparation activities.

This proposal builds on the previously approved “Authorize Engagement with Secondary Exchanges for LCAI Listing” governance proposal, which contemplated that future exchange opportunities requiring liquidity provisioning or related financial commitments would be presented to the DAO separately for approval.

Rather than requiring separate governance actions for each operational liquidity transfer, this proposal establishes a liquidity allocation that may be used exclusively for approved exchange liquidity provisioning activities associated with secondary exchange listing efforts.

This proposal does not authorize payment of any exchange listing fees, execution of any final listing agreements, or unrestricted use of Treasury assets.

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Proposal

Authorize Quantum Counsel LLC, acting as the Ministerial Agent and Administrator of the LCAI DUNA, to:

- Receive a transfer of 30,000,000 LCAI from the Treasury to the Quantum Counsel, LLC Wallet (0x8fECcC2cc21B901E11620070B19A51F50e409130) for exchange liquidity provisioning purposes.

- Sell, convert, allocate, and manage transferred LCAI assets on an as-needed basis as reasonably necessary to fund approved exchange liquidity and market-making requirements.

- Coordinate establishment of required liquidity and market-making arrangements associated with approved exchange listing efforts.

- Deposit and manage liquidity allocations required in connection with exchange onboarding and trading preparation processes.

- Coordinate with external market makers, exchanges, service providers, and related counterparties as necessary to facilitate approved liquidity requirements.

- Reuse, reallocate, redeploy, retain in segregated custody arrangements, or return previously allocated liquidity assets between exchange listing efforts when operationally appropriate and consistent with the scope of this proposal.

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Rationale

This proposal provides operational flexibility to continue pursuing exchange listings efficiently while preserving DAO oversight over material financial commitments.

By authorizing a liquidity allocation in advance, the DAO can reduce delays associated with repeated operational transfer proposals while maintaining clear constraints on permitted usage.

Importantly, this proposal separates liquidity provisioning authority from approval of any final exchange listing agreements or listing fees.

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Execution

- Upon approval, 30,000,000 LCAI may be transferred from the Treasury to the Quantum Counsel LLC Wallet (0x8fECcC2cc21B901E11620070B19A51F50e409130) for the limited purposes described in this proposal.

- Quantum Counsel, LLC has published Appendix A to its Retainer Agreement with the LCAI DUNA describing the firm’s policies and ethical obligations regarding custody, segregation, safeguarding, and recordkeeping of DUNA digital assets held in connection with representation of the DAO.

- Assets transferred pursuant to this proposal may move through segregated custody arrangements, including intake, client trust, and approved deployment wallets, consistent with the procedures disclosed in Appendix A.

- Assets held pursuant to this proposal are expected to be maintained within segregated custody arrangements, including a dedicated multisignature client trust wallet structure.

- The address of any dedicated multisignature client trust wallet established pursuant to this proposal is expected to be publicly disclosed to the community once operationally established.

- The DUNA Administrator will coordinate approved liquidity and market-making arrangements associated with exchange listing efforts and oversee related operational preparation activities.

- Updates regarding exchange engagement efforts and material developments will be periodically shared with the community for transparency.

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Constraints

- This proposal does not authorize payment of any exchange listing fees or execution of any final exchange listing agreements. Any proposed listing fee or final listing agreement, including any proposed BitMart listing fee or listing agreement, must be presented to the DAO in a separate governance proposal for approval.

- Any sale or conversion of transferred LCAI must be directly related to approved exchange liquidity provisioning and market-making activities.

- Any sale or conversion of transferred LCAI should only be conducted on an as needed basis to support approved liquidity provisioning activities.

- This proposal does not authorize unrestricted expenditure or discretionary use of Treasury assets outside the scope of approved liquidity provisioning activities.

- Authority granted under this proposal is limited solely to liquidity provisioning, market-making coordination, and related exchange listing preparation activities associated with secondary exchange listing efforts.

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Voting Options

FOR: Authorize the 30,000,000 LCAI allocation for exchange liquidity provisioning activities.

AGAINST: Do not authorize.

ABSTAIN: No opinion.