In order to address the DAO's remaining ~1m USK mint obligation, the following sunset plan and terms have been agreed to by the Kujira Core Team, subject to community discussion and formal ratification in MantaDAO governance. **Background** MantaDAO's Treasury Balance Sheet includes (at current spot prices): - 350k Stablecoins, of which 275k is USK - $643k "Blue Chip" Assets (BTC, ETH, SOL) - $177k KUJI, RUNE, FUZN - $24.1k Exogenous Assets marked for Priority Divestment - $24.4k Exogenous Assets marked for Secondary Divestment MantaDAO's Debt and Mint Obligations include: - 997.8k USK mint position - 135.3k USDC debt **Pre-Migration to THORChain** 1) The remaining USDC debt (on Ghost) will be fully repaid using proceeds from the sales of Exogenous Assets marked for Priority and Secondary Divestment, in combination with existing stablecoins on the DAO's balance sheet. 2) All DAO-controlled USK (275k at present) will be custodied in the Manta Ops Multisig, to be used for the DAO's USK mint obligation. 3) An OTC deal with the Kujira Team of 457.5k USK for 2m MNTA will be performed (see *OTC Deal with Kujira Team* for details) and custodied in the Manta Ops Multisig. 4) In accordance with steps 2 and 3 above, a total of approximately 733k USK will be acquired and custodied by the Manta Ops Multisig to be used for repayment of the USK mint obligation. Approximately 267k USK mint obligation will remain post-migration. See the *Post-Migration to THORChain* section for subsequent details. **OTC Deal with Kujira Team** An OTC exchange of MNTA for USK will occur between MantaDAO and the Kujira Team, along with a number of commitments from both parties. 1) MantaDAO provides 2m MNTA 2) Kujira Team provides 457.5k USK 3) MantaDAO commits to migrating all remaining treasury assets (net of debt and mint obligations) over to the Rujira app layer 4) Kujira Team (as Rujira Team) commits to staking all of the MNTA received (as LQDY on Rujira) - 4a) All revenue earned from this staked LQDY will be periodically collected and belongs to Rujira - 4b) Rujira will not exercise governance voting rights via this staked LQDY, unless directed to do so by majority decision from the Manta Ops Multisig - 4c) A DAODAO multisig with representatives from both Rujira and MantaDAO is suggested for custody and revenue collection of this staked LQDY on behalf of Rujira 5) In case the Rujira team would want to sell its LQDY, they commit to: - 5a) Not sell more than 20% of the initial position (400k LQDY) over a rolling 12-month window - 5b) Give a Right Of First Refusal (ROFR) to MantaDAO to buyback the LQDY at whatever is the lowest price between current market price and $0.25 - 5c) Use limit orders to mitigate price impact in case MantaDAO does not exercise its ROFR **Post-Migration to THORChain** 1) MantaDAO will use up to 50% of its revenue to buy USK limit orders at or below 0.90 USDC - Related cross-chain activities (revenue collection, bridge to Kujira, swap for USK) will be carried out by a MantaDAO Operations Multisig group on THORChain 2) If at any point the full remaining net USK mint obligation by MantaDAO has been acquired, then the USK mint position will be closed and corresponding buy-backs of USK by MantaDAO will cease 3) In exchange for the commitment by MantaDAO to use up to 50% of its revenue to buy USK if price is below 0.90 USDC, the Kujira team commits to keep the USK interest rate for the MNTA-USK mint market to 1% In accordance with the above plan, this proposal transfers all USK-related assets (including LPs) and excess MNTA tokens into the custody of the Manta Ops Multisig to carry out the plan on behalf of the DAO. Full Discord Discussion: https://discord.com/channels/1095005002201833495/1355626382343933993