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How should Axion pay for the V3 Audit?

Axion Development Team
25 July 2021
Axion dao vote community proposal

The community must now vote on how to pay for the Axion v3 Audit. For more information about the Audit itself, including reasons for why an audit should be performed, please visit this page.

There are multiple options and combinations of options to pay for this audit. The intent of this vote is to determine the community's most prominent option, though the ending result may be a combination of options. In this vote, you will choose the options that you believe would be best. 

 

 Vote now complete

Key facts:

Auditing provider: Halborn

Auditing timeframe: September 6th start to Mid-October completion

Auditing cost: $60,000 (final price to be determined upon confirmation of audit). There would be an initial deposit of an unknown amount, with full payment due upon audit completion.

Launch timeframe with audit (assuming audit starts immediately): End of Q3 to Early Q4

Audit Payment & Timelines:

In order to afford this audit, the community would vote on the following options if a YES vote is secured:

  1. Axion Foundation could sell the full or partial amount in AXN from the dev fund. This will result in an immediate price decrease as the amount is converted to a stable coin. At current volumes, if the full amount was sold, we estimate between 5-7% price decrease with this sell. The timeline for Axion V3 launch would be End of Q3 to early Q4.

  2. Axion could pay from the liquidity pool. But with the community-provided LP tokens locked until the end of September, the Axion Foundation cannot pay for the audit until those tokens are released, pushing out the timeframe of the audit and the launch of v3 to Q4 2021 / Q1 2022. There would be no direct impact on the price; however, future buys and sells would have a potentially higher price impact.

  3. Axion could pay from the proceeds generated through the auctions. The community has voted to allocate the current auction ETH proceeds to the Marketing Budget for the rest of Q3, in order to bring in new investors, so the fundraising effort would need to start in Q4. If the auction budget is reallocated to pay for the audit, it would take approximately 2-3 months at the current price / volume to save up for the audit using auction proceeds alone. Therefore v3 could launch in Q2 2022.

  4. There is over 30wBTC in the staking contract from unwithdrawn dividends. The community could vote to borrow against this fund immediately and repay it with auction proceeds, as it is statistically unlikely that all 30 wBTC would be withdrawn over the next quarter. This would, in a sense, be Axion borrowing from the community's bitcoin dividend pool. It would take around 1.75 bitcoin to fund this process (at current bitcoin prices). The timeline for Axion V3 launch would be End of Q3 to early Q4. 

  5. Or some combination therein, such as a multiple-way split between funding sources to mitigate the draining/usage of any one. 

The Vote:

The community needs to vote on how to pay for this audit process. 

You will select all the options you see to be viable. The predominant option (or the most predominant options) will be utilized to fund the audit. Any options that have not garnered significant votes will not be considered viable funding options. It will be up to the Axion Development Team to determine the best way to enact this funding, or to divide the funding options based on the largest votes garnered for each option. Because each option comes with its own timeline for the audit depending on when the audit can be paid, the Development Team will update the community on any proposed or actual timelines.

The Axion Development Team reserves the right to be able to attempt to secure the auditing partnership in a timely manner, and will update the community with any proposed or taken actions in order to ensure the audit can successfully begin.

The voting options are as follows:

  1. FUND FROM DEV WALLET
    You would like the Dev wallet to sell on the market to fund some or all of the cost of the audit.

  2. FUND FROM LIQUIDITY POOL
    You would like to wait until the liquidity pool tokens are freed up in mid-September and fund some or all of the audit.

  3. FUND FROM Q4 AUCTION PROCEEDS
    You would like to use the Q4 Auction Proceeds to fund some or all of the audit. If option 2 or 4 is chosen, then this could repay any loan or borrow.

  4. BORROW FROM BITCOIN DIVIDENDS
    You would like to borrow from the 30 wBTC that is present in the staking contract to be paid back by Auction proceeds in Q4.

 

 Vote now complete

 



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