[For Discussion] Proposal to handle the unclaimed ITAM rewards - V2

Community Discussion & Proposal Others
1

Dear alpacas,

Thank you for all your suggestion and feedback so far on the first proposal re. ITAM rewards. We have digested them and would like to move the discussion to this new thread with a new suggested potential implementation plan for discussion below.

Process:

If you haven’t read our Governance process. Please spend some time to read it here: Process for Governance Proposal for Alpaca Finance

As stated in the process, this is for discussion and only after community support, will it go to the next step.

Summary of the situation:

1.) ITAM was the first Grazing Range partnership which ran in April - May of 2021. These ITAM rewards were provided as extra rewards to ITAM-BNB farmers and BNB lenders. The distribution was completely different than our later Grazing Ranges. It’s not the case that users were staking explicitly to receive these rewards.

3.) Currently there are ~917k unclaimed ITAM (~USD 500k)

4.) ITAM was recently acquired and any tokens not swapped by March 31st 2022 will lose all of its utility

See excerpt below:

:bellhop_bell: ITAM-to-ITAMCUBE token swap portal will close in [11:59PM UST] March 31, 2022.

“With this said, the token swap portal will close at the end of next month. If you have not yet swapped your ITAM token to ITAM CUBE token, we strongly ask you to do so as quickly as possible. For any ITAM token that has not been swapped afterwards will lose all its utility. We sincerely hope we can make it clear that Netmarble F&C will NOT support ITAM token and will NOT use ITAM token in any of its services and initiatives. Only ITAM CUBE.”

Original article: ITAM to ITAM CUBE Token Swap will close in March 31, 2022 | by ITAM CUBE | ITAM Cube | Feb, 2022 | Medium

Potential Implementation:

The direction below is based on the suggestion from @Bibendus

1.) An announcement period to make sure users are aware of the plan and give them time to claim.

2.) Any remaining unclaimed ITAM would then be swapped into ALPACA tokens. Note: given the timeline above, we would need to execute this prior to March 31st.

3.) Users will still be eligible to claim their rewards in ALPACA tokens proportional to their original share. (e.g., Alice was entitled to 1% of the unclaimed ITAM rewards. She would be entitled to 1% of the ALPACA acquired from swapping those ITAM)

4.) Users will have 12 months to claim their ALPACA rewards (the waiting period here is part of the discussion) Any unclaimed amount afterward would be burned.

6 Likes
2

How would the selling for ITAM to ALPACA happen?
Will they be sold for a stablecoin and then used to gradually buyback ALPACA as we do with the liquidation treasury or are we buying all at once?

Also will the ITAM token be dumped all at once or gradually?

Could the ITAM dump give us a negative image for possible future partnerships?

3

We would need to address the liquidity issues. I am expecting low liquidity as time closes nearer to the deadline. Even liquidity now isn’t enough to cover the amount of ITAM we are holding.

I proposed that 1/4 be sold throughout the week of 14/03/2022, and another 1/4 be sold throughout the week of 21/03/2022.

So in general, half of the ITAM will be sold into Alpaca and the other half to be converted into ITAM Cube.
We will allow claiming for both Alpaca and ITAM Cube same as above, proportionate to their original share in both tokens. After 3 months, the remaining ITAM Cube will be sold into Alpaca (hopefully with better liquidity then). The claim shall remain for another 3 months, so 6 months after conversion. Any unclaimed Alpaca rewards shall be burned.

This is so users that want to keep ITAM, could at least keep half of it, if they managed to claim in time. If after repeated attempts to notify the users to claim, and they did not claim. It will be converted to Alpaca and then subsequently burn off the unclaimed amount.

4

Well, it seems that we can not simply wait owners to claim them. I think we should swap them to ITAM-CUBE at first. This movement is not that controversial compared to selling them in market.
We should make this thing happen as soon as possible.
After that, we can slowly discuss the distirbution or waiting them to be claimed.

1 Like
5

can ITAM-CUBE be sold already or will it happen only when the migration is complete?

6

There is no liquidity for ITAM-CUBE though. Who knows if they will add liquidity on DEXs or list it on CEXs. I’m unaware of their plans and not following the situation but I wouldn’t be surprised if they didn’t pursue BD activities on the new token. If that were to happen, the ITAM-CUBE would be effectively worth nothing.

1 Like
7

Welcome to the Governance Herd :slightly_smiling_face:

I don’t see meaningful liquidity for ITAM on other exchanges according to CG/CMC so I don’t see much point to staggering the sales. The price impact will be significant though so we can consider converting to ITAM-CUBE, at least for part of it, but we’d then be betting on ITAM-CUBE. Maybe someone can research what they’re planning to do with ITAM-CUBE and what base confidence level we can have that there will be liquidity for it in the future.

8

That’s true, now I agree with swapping them into ALPACA.

1 Like
9

I agree with you ,lets not waste much more time or else we will lose everything on ITAM. Let the swap to Alpaca start .

10

Currently there is only about $20k in Liquidity for ITAM-CUBE.

ITAM still has at least over $1 Mil in Liquidity on PCS.

I am not able to find a comprehensive plan for Itam liquidity from the Itam-Cube Team. We should take action soon. I think the best scenario would be to swap to Alpaca and/or stablecoin. The longer we wait the faster Liquidity will dry up.

2 Likes
11

Hi Sam, thanks for the welcome.

As you said, the price impact will be significant so I propose a part of it to be sold throughout the weeks to reduce the slippage and price impact, similar to what liquidation treasury is doing right now.

Yes, the bets will be on ITAM-CUBE, but given their massive bounce back from a few months back, there are signs that they are actively developing with games, rewards, staking and NFT marketplace. Based on the documentation, it also looks like they may/may not incentives ITAM-CUBE LP for staking, which may help with future liquidity issues.
But it is still a risky endeavor, hence the proposal to hedge half of the current ITAM to alpaca, while converting the remaining ITAM to ITAM-CUBE and we can continue to observe from there.

Their socials are relatively moderate but still an amount of users/following:

Twitter followers: 40.5k followers
Telegram: 23.2k users

Further research also show that Binance and Netmarble F&C has signed MOU for p2e games.

Now how does Netmarble F&C has to do with ITAM? Well as of 12th Jan 2022, Netmarble F&C has acquired ITAM games, and based on this article provided by ITAM, ITAM-CUBE will be Netmarble F&C native token on the blockchain as well. Now that Netmarble F&C has taken over ITAM, and with MOU signed between them and Binance, an assumption can be made that they will look towards developing more P2E games on the blockchain by leveraging on ITAM middleware services as well.
Source:

  1. Netmarble F&C meets ITAM CUBE. Acquisition notice and our future… | by ITAM CUBE | ITAM Cube | Jan, 2022 | Medium
  2. Netmarble F&C, bridging real games to blockchain | by ITAM CUBE | ITAM Cube | Feb, 2022 | Medium
    Note: Netmarble F&C is also a listed company on the Korea Exchange (KRX), with a market cap of 8.68T won, which roughly converts into $7.26billion USD.
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Adding on more sources due to 2 links limit:

  1. Binance MOU : Binance and Netmarble F&C Sign MoU for Strategic Partnership to Build a Global P2E and NFT Ecosystem | Binance Blog
  2. Token utility for ITAM-CUBe: Token Utility - ITAM CUBE
13

I responded to staggering the sales in this post. I don’t think that would achieve much - [For Discussion] Proposal to handle the unclaimed ITAM rewards - V2 - #7 by Samsara

Thanks for adding the info about Netmarble’s plans.

14

Noted on the staggered sales.

When you mentioned part of ITAM to convert into ITAM cube, how much proportion do you have in mind? I thinking maybe 30-40% will be sold for Alpaca, while the rest will be converted due to the low liquidity coming forth in the future.

15

I don’t know. There are better people on our team to calculate that if we do go that route.

16

I agree there being not much point to staggering. Also I agree with the proposed buyback into Alpaca with any unclaimed funds being burned after 12 mth.

17

Hello everyone.

The discussion has moved to an AIP stage. Please help provide your comments and feedback here: [AIP - 1] Handling of the unclaimed ITAM rewards