SIP-24: Enact a Samurai Governance Vault Conversion

Motivation

This proposal suggests for the protocol to enact a conversion of a portion of the current Fantom (FTM) holdings situated in the Samurai Governance Vault, in the next 180 days. The enactment of the proposal and the associated conversion of Fantom (FTM) to USDT (or USDC/DAI) shall be conducted in order to ensure the Samurai Governance Vault funds are stored in a stable currency and to circumvent the holdings being prone to the price volatility underlying the Fantom token.

The conversion shall safeguard the protocol’s financial health against the potential backdrop of unpredictable market movements that the cryptocurrency industry naturally presents and ensure that the Samurai protocol is positioned effectively to endure and sustain the foreseeable future.

The funds being converted into a stable currency shall benefit the protocol, by ensuring it is in a robust position where it can successfully bootstrap, encourage and fund protocol-related initiatives, products, services and related development.

• Financial Stability: Transitioning from Fantom (FTM) to a stablecoin ensures that the protocol's financial resources are not subjected to the turbulences of market volatility, thereby securing a clear, predictable and stable financial base.

• Operational Resilience: With a more predictable financial outlook, the protocol and its contributors can more effectively plan and execute its operational and developmental agendas without the added complexity of managing crypto market risks.

• Strategic Flexibility: The conversion provides the protocol with the agility needed to capitalize on emerging opportunities and to support future initiatives without the concern of diminishing the Samurai Governance Vault value due to adverse and unpredictable market movements.

• Sustained Development and Growth: By converting to stablecoins, the protocol enhances its resilience against market downturns, preserving capital for strategic uses and funding protocol-related initiatives that benefit and foster the protocol amidst various market outlooks and scenarios.

The proposed conversion of FTM holdings to a stablecoin arguably resembles a strategic move to mitigate financial risks associated with market volatility. Furthermore, it aligns with the protocol's overarching goals of potentially further growing and expanding its ecosystem of products, services and tools by situating the protocol in a healthier long-term position, where it can support and encourage such initiatives in the future.

The enactment of this proposal shall hence effectively fortify the protocol's financial health and operational resilience.

Specification

The conversion of 1 650 000 Fantom (FTM) situated in 0x6E5A826c8348B3a3f8854afC333562564C71353e to stablecoins (USDT/USDC or DAI) shall be carried out by the core team, at any available price, in the next 180 days.

The conversion shall be executed at any centralised (CEX) or decentralised exchange (DEX).

The execution of the conversion can fully unfold prior to the 180-day limit. Besides the 180-day time limit, the execution of the conversion is at the discretion of the core team.