New $ZINC Proposal Promises Buyout and Airdrop to Early Supporters
ZINC, MetaDao and ZKFG DAO seek resolution
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With a third privatization proposal hitting MetaDAO decision markets, the ZINC vs ZKFG DAO debacle is one step closer to resolution.
Reaffirming the $0.15 per token buyout, ZKFG-008, seeks to put ongoing governance dramas to bed, while rewarding the protocol’s long term supporters with an airdrop valued at $90,000.
Despite the drama and conflict, network participants are united in the belief that the saga has galvanized MetaDAO ownership coins, helping the model work through friction and pain points as it expands.
Inside ZKFG-008: Take ZKFG Private Round 2
After its first buyout was approved, but failed to execute, and a second proposal was rejected, ZINC, ZKFG, and MetaDAO appear to have settled on a final decision market that will bring an end to the turbulent saga.
ZKFG-008, or ‘Take ZKFG Private Round 2’, picks up where its two predecessors left off, proposing to buyout $ZKFG holders at $0.15 per token, effectively sunsetting $ZKFG, privatizing the company, and aligning all operations under the firm’s second token, $ZINC.
But the new proposal introduces a couple of new caveats. Primarily, ZKFG-008 identifies a supermajority of ~65% of $ZKFG ownership, who will be excluded from the $0.15 liquidation. Additionally, the buyout will be supplemented by an airdrop of 5000 $ZINC to long-term supporters based on a May 25 snapshot.
Currently valued at ~$90,000, the airdrop will be vested daily over a 3-month period, and will not be distributed to the supermajority wishing to privatize the company.
While the proposal is still in its infancy and has yet to record sufficient volume to meaningfully indicate its chances of success, network participants are largely onboard with its direction. The decision market is set to trade until June 20, at which point an outcome will be exercised and ZKFG will either buyout remaining holders and claim full ownership of the IP, or revert to existing circumstances.
$ZKFG Holder Argues Fair Value is $2.15 at Minimum
Despite social media commentary, which is largely dominated by $ZINC holders with skin in the game, leans heavily in favor of the proposal, critics refuse to be silenced. Streamflow founder and $ZKFG tokenholder Malisha Stanojevic argues that ZKFG’s $0.15 buyout does not represent fair value for the asset at best, and is at worst an example of normalized fraud in the crypto industry.
Stanojevic asserts that, if ZINC was correctly allocating a percentage of its revenues back to the ZKFG DAO treasury, the fair market value of $ZKFG would land at a minimum of $2.15.
Beyond accusations that the ZKFG DAO has failed to fulfill its promises, Stanojevic also expressed disappointment with MetaDAO, who he argues has failed to protect tokenholder rights by allowing ZKFG to “siphon value away from the project”.
Commentators have pushed back on Stanojevic’s position, claiming that his malcontent stems from what would become a failed arbitrage attempt if the proposal passes.
MetaDAO Pushes Through Growing Pains
Regardless of the outcome, the ZKFG saga is certainly putting MetaDAO, ownership coins, and onchain capital formation through its paces. Despite the ongoing, and currently unresolved decision market, many futarchy advocates have commended MetaDAO leaders Proph3t and Kollan for working with ZKFG to find what they call a balanced solution.
However, others have argued that MetaDAO’s intervention for the sake of reaching a resolution goes against the fundamental ethos of what futarchy and decision markets were designed for. One commentator asserts that “finding opportunities, exploiting inefficiencies, and stress-testing assumptions” is the “core principle of futarchy”.
Ultimately, the ZKFG saga is far from the first governance drama to play out in decision markets, and it will certainly not be the last. Proponents of the Ownership coin movement are united in the belief that every controversy only exposes existing faults in the model, which can then be patched up and improved to make futarchy more resilient long-term.
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