Overview

This proposal consolidates several key initiatives into a single voting event to minimize gas costs. Each initiative is critical for the growth and development of Soft Protocol, enhancing both functionality and community engagement.

Action Items

1. Fund Development of SOFT Staking to Power NFTs and Fee Switch

Context: The staking mechanism will enable SOFT holders to mint Soft Mfers NFTs and allow projects to stake large amounts of SOFT for discounts on smart contract fees during their launches. This feature aims to increase the utility and value proposition of SOFT tokens. The stake-to-mint feature will be reusable for future drops.

Budget: $12k (4 ETH)

Send To: Soft Operations Wallet

2. Renew Community Leaders Contracts and Increase Compensation

Context: Community leaders play a vital role in maintaining and growing our community. Their responsibilities include moderation of Discord, forum maintenance, handling support tickets, and data generation. Previously, we had 4 community leaders and 4 ambassadors. The ambassador program is ending, and Romera and Amir will join as community leaders. All community leaders will receive a base compensation of 700 USDT/month. Kir.OS and Lucian will receive an additional 300 USDT/month in recognition of their long-term contributions. Contracts will cover 8 months of payments, retroactively starting from March 1, 2024.

Budget: $38.4k (38400 USDC, over 8 months)

SOFT Allocation: 100,000 SOFT (split evenly among all community leaders)

Send To: Soft Operations Wallet

3. Fund SDK Development

Context: The SDK will allow developers to integrate Soft infrastructure into their projects, supporting features for token sales and distribution, and providing debugging tools. Written in TypeScript, this SDK will push Soft Protocol closer to the goal of "integrate everywhere." With the fee switch and SDK, Soft Protocol could see significant revenue growth.

Budget: $20k (6.67 ETH)

Send To: Soft Operations Wallet

4. Fund NFT Artwork

Context: The Soft Mfers NFT artwork will be a derivative of Sartoshi's cc0 Mfers collection. Utilizing the cc0 license allows us to use these works for commercial purposes. High-quality NFT art is essential for the success of this initiative.

Budget: $20k (6.67 ETH)

Send To: Soft Operations Wallet

5. Fund NFT Development

Context: This development involves creating new smart contracts to support the Soft Mfers NFT initiative. Features will include stake-to-mint, whitelisted rounds, paid public rounds, and an ownerMint function for giveaways and collaborations.

Budget: $26k (8.67 ETH)

Send To: Soft Operations Wallet

6. Fund Additional Soft Airdrops and Bridge Them to Base

Context: These airdrops will be distributed on the Base network, which offers lower fees compared to Ethereum L1. This initiative includes SoftQuest rewards for tasks like bridging and LP provision, Boost.xyz campaigns, and FlashDrops for communities rewarding Soft holders.

Airdrop Allocation: 15M SOFT

• Early Bridging to Base: 2M SOFT
• Late Bridging to Base: 2M SOFT
• Rewards for Soft LPs: 5M SOFT
• Boost.xyz Round: 2M SOFT (1000 SOFT * 2000 users)
• FlashDrop Pairing: 4M SOFT

Send To: Soft Operations Wallet

7. Pay Back the Soft LP Loan

Context: The LP loan was initially provided to seed a liquidity pool on Aerodrome Finance, facilitating Soft trading and offering Aero incentives. The rewards have been used to fund additional incentives and secure voting rights on emission assignments. This loan was interest-free and will be concluded with this payment.

Repayment:

• 32 ETH
• 1,500,000 SOFT

Send To: LP Repayment Wallet

8. Fund Additional Aerodrome Incentives

Context: Weekly incentives will be added to Aerodrome, rewarding Aero governance voters who direct emissions. These incentives will be managed through a multi-sig wallet controlled by Soft contributors.

Budget:

• 5 ETH
• 10,000,000 SOFT

Send To: Soft Operations Wallet

9. Fund Development of Farcaster Tooling

Context: The tool, Fundcaster, is a Frames-native tool for launching tokens on Base. Currently, it supports token creation with additional features under development. V1 of the tool is live at Fundcaster.

Budget: $6k (6000 USDC)

Send To: Soft Operations Wallet

10. Distribute Stealth Round

Context: The Stealth Round was a public sale of SOFT at $0.25 per SOFT, raising approximately $26,000. Given the subsequent price discovery, this proposal seeks to distribute SOFT at $0.04 per SOFT, providing a discount to the market price.

Send To: N/A

11. Fund Operational Costs

Context: It’s critical to fund some key operational costs - things like entity formation, platform upkeep costs, infrastructure like Shopify & Discord Nitro, and marketing spends. This funding will ensure the lights are kept on and development continues. At the end of each quarter, a breakdown of funds utilized will be published, with any unused funds returned to the treasury.

Budget: $50k (19.3k USDT, 30.7k USDC)

Send To: 3850 USDC to Soft Operations Wallet

Send To: 26850 USDC to OpCo Wallet

Send To: 19300 USDT to OpCo Wallet

12. Governance Repair Bounty

Context: Recently, a vulnerability in Soft’s governor contract was discovered and responsibly disclosed. Thankfully, Soft contributors were able to fix the issue by turning off voting-while-vesting, before anyone was able to exploit the vulnerability. For the responsible disclosure of this issue, the firm shall receive a bounty in the form of USDC

Budget: $5k (5000 USDC)

Send To: Gov Bounty Recipient’s Wallet

13. Swap 7 ETH to USDC

Context: Soft is spending most of its USDC, and it's important to maintain some treasury diversification. This swap will help ensure there are sufficient USDC funds available.

Budget: 7 ETH

Budget Summary

Operations & Development

• Community Leaders: $38.4k (38400 USDC)
• Staking Budget: $12k (4 ETH)
• SDK Development: $20k (6.67 ETH)
• NFT Art Budget: $20k (6.67 ETH)
• NFT Contract Budget: $26k (8.67 ETH)
• Operations & Marketing Costs: $50k (19.3k USDT, 30.7k USDC)
• Farcaster Tooling: $6k (6000 USDC)
• Governance Repair Bounty: $5k (5000 USDC)
• Swap to USDC: 7 ETH

LP Loan Reimbursement

• 32 ETH
• 1,500,000 SOFT

Aerodrome LP Incentives

• 5 ETH
• 10,000,000 SOFT

Community Leaders SOFT Allocations

• 100,000 SOFT (Over 8 Months)

Airdrop Rounds

• 15M SOFT
  • Early Bridging to Base: 2M SOFT
  • Late Bridging to Base: 2M SOFT
  • Rewards for Soft LPs: 5M SOFT
  • Boost.xyz Round: 2M SOFT
  • FlashDrop Pairing: 4M SOFT

Total Budget

Total Budget

• STABLES: $99.4k (80100 USDC + 19300 USDT)
• ETH: 70.01 ETH
• SOFT: 26,600,000 SOFT

BUDGET BREAKDOWN

• USDC: $38.4k (Community Leaders) + $30.7k (Operations & Marketing) + $6k (Farcaster Tooling) + $5k (Governance Repair Bounty) = $80.1k
• USDT: $19.3k (Operations & Marketing)
• ETH: 4 (Staking) + 6.67 (SDK Development) + 6.67 (NFT Art) + 8.67 (NFT Contract) + 32 (LP Loan) + 5 (Aerodrome Incentives) + 7 (Swap to USDC) = 70.01 ETH
• SOFT: 1,500,000 (LP Loan) + 10,000,000 (Aerodrome Incentives) + 100,000 (Community Leaders) + 15,000,000 (Airdrop Rounds) = 26,600,000 SOFT

Conclusion

This proposal outlines a comprehensive plan to fund critical initiatives for Soft Protocol. By consolidating these actions into a single vote, we aim to minimize gas costs and streamline our development efforts. These steps are crucial for the continued growth and success of Soft Protocol. We invite the community to support this proposal to achieve our collective goals.

Wallets:

Soft Operations Wallet: 0xb2db3ccdeb229c6a4596619f51d93e00966914f9

Loan Repayment: 0x95fFC09b4D6F6F67EB0647ab27F452cFc3A98F3a

OpCo Wallet: 0x7ED2D2e08cb25a90C5c818eAb56605210Ca8aC9a

Governance Bounty: 0xB5B5478204f91133B5278B91a30Aeb3a0899d8b4