HIP: 29 title: Deposit funds of the DAO to the UBI Burning Vaults author: @santisiri status: Phase 1 created: 2021-08-26 conflicts with: None languages: EN
The ETH and DAI held by the DAO should be deposited on the UBI burning vaults. This will help reduce criculating supply of UBI with half of the generated yield of these assets. Workers for the DAO should be paid using either ubiDAI or ubiWETH tokens. This helps set an example for other DAO treasuries out there.
The Proof of Humanity DAO currently holds 46.48 ETH on its Kleros Governor contract & 34,051 DAI currently held on a Multisig setup to receive Gitcoin grants.
In order to support the burning of UBI with the Vaults implemented with the Yearn Finance community, we propose that rather than simply having the DAO holding these assets, these get deposited to the ubiWETH and the ubiDAI vaults that have been operational during the last two months.
The DAO will then hold ubiWETH and ubiDAI tokens, setting a clear example on how to support with its treasury the burning of UBI. This action can then be used as an example to invite other DAOs to do just the same thing in order to support Universal Basic Income on Ethereum.
Hired workers from the DAO in the future can also be directly paid with either ubiWETH or ubiDAI tokens and decide to withdraw themselves those funds any time they want to.
The vaults can be currently accessed by end users on https://democracy.earth and are both currently at ~20% capacity.
The ubiWETH vault can be found on: https://etherscan.io/address/0x2147935d9739da4e691b8ae2e1437492a394ebf5
The ubiDAI vault can be found on: https://etherscan.io/address/0xdf5110ef6bc751cbaf76d35b8a3f312b581b5173
ETH will have to be converted to WETH first via a Uniswap or some other DEX swap, and once the WETH is available, it gets deposited to the ubiWETH vault.
DAI will have to transferred to the DAO Governor first and once there it can be deposited on its corresponding ubiDAI vault.
- A swap of ETH for WETH on Uniswap.
- An approval for the ubiWETH vault to use the WETH.
- A transfer of the available WETH into the ubiWETH vault.
- An approval for the ubiDAI vault to use the DAI.
- A transfer of the available DAI into the ubiDAI vault.
It’s critical for the future of UBI to builid liquidity on these vaults so we can have a burning mechanisms that works at scale. Right now the vaults are capped at 1 million DAI and 400 ETH respectively. Each of them is currently at 20% capacity.
By setting a clear example coming from the Proof of Humanity DAO, we can then promote this action across the entire Ethereum ecosystem and invite other DAOs to support UBI this way.