Galactic Punks Community Update — Treasury & Terra 2.0 Next Steps

I think it goes without saying that the last 2 weeks have been rough for everyone. There are no words and no announcements that could magically help us get through it. But if anything, the events have demonstrated the importance of NFT communities within the wider structure of a crypto ecosystem — with many Discord channels transformed into lines of support for members and Terra users alike. We are all dealing with unprecedented events but at least we don’t have to do it alone.

This update aims to:

• Provide a transparent recap of events over the last few days
• Share the thoughts and views of the team as it related to GP
• The next steps for the collection

We appreciate your patience and ask that you read the entire update as there is a lot to unpack.

A recap of recent events

Treasury

On May 12th, as UST/LUNA spiralled out of control, the GP team posted a proposal to the DAO (PROPOSAL 022 — CRISIS MANAGEMENT MODE) using our new on-chain hub. It requested DAO transfer fund management control to the core team, as the situation required quick actions.

Despite our best intentions, it quickly became clear that the congested Terra Network and upcoming chain halt rendered the voting process difficult. The GP core team decided it was time to take action and salvage parts of the DAO treasury.

The DAO funds were stored in a multi-sig with 5 signers. First, we withdrew all the aUST from the Anchor Protocol. All of the aUST was then sent (except 270 for gas and incidentals) to a separate hot wallet. We proceeded to bridge the 403,200 withdrawn aUST via wormhole to a new Metamask ETH wallet. It was then time to swap UST into either USDC or USDT.

Sushi Swap was quoting the best price for UST-USDT. However, it was madness. UST kept bleeding and ETH transactions kept failing. Gas was skyrocketing & we kept needing more ETH. Unfortunately, it reminded us of why we loved Terra so very much.

To reduce slippage, price impact and failed txs — we proceeded to sell UST in batches. Finally, the 403,200 UST was swapped for a total of 136,720.9 which comes to an average price of $0.339 per UST. At today’s prices, we’re happy to have salvaged what was left. At the discretion of ambassadors, our final move was to swap all the USDT for 134,175.828342 USDC.

None of the DAO´s liquid or staked LUNA was touched because at that point, it was pointless. We have shared these steps with you in Discord immediately after they were taken.

On May 16th we made 3 payments from the DAO funds, totalling 3,320. This went to developers Tony, Whilom and Vince for their building contributions of the on-chain DAO voting hub.

On May 20th, all of the USDC and most of the ETH was moved out of the hot wallet to a newly established Gnosis multi-sig consisting of the 5 core team members with a ⅗ requirement. The address of the Multisig is: eth:0xe025fCAffb2fCf1117009B13f7FF3986bc1A0bdC.

Current holdings
At the time of writing, the DAO Gnosis multi-sig holds:

• 130,856.36 USDC
• 0.78417623 ETH
• 0.1233 ETH (in DAO hot wallet for gas)

The old set of DAO wallets (Terra, Solana) is visible here: https://apeboard.finance/dashboard/APE-DVURPH

All the USDC and ETH will remain in the the team multi-sig and used for proposals as they are passed. The assets will be sent to a new, fully DAO controlled multi-sig a council of signees are elected (see more below).

Galactic Punks Validator
Our Validator has been running and supporting Terra throughout all these events. Our dev has upgraded the AWS node instance to help with the network congestion in the days of peak mayhem, and we have since downgraded it again.

In our newest DAO proposal 023 — TERRA 2.0 GALACTIC DAO VALIDATOR — over 85% of members voted in favor of GP supporting the upcoming Terra 2.0. This means our Validator will support and validate that new chain, and the costs for running it will be taken out of the treasury left — as outlined above.

Next Steps: Terra 2.0 and Galactic DAO Decentralization

The most frequently asked question in the past days has been “What other chain will Galactic Punks migrate to from Terra?”

The answer is — none.

This might come as a surprise to some. However, we strongly believe that Galactic Punks are and will always be a part of Terra. It was more than an NFT collection — we created a community believing in Terra’s role in advancing decentralized finance.

The Galactic DAO crowdsourced talent and created a framework for members to contribute to the ecosystem in ways they couldnt on their own. We run one of 130 Terra Validators, with over 1,5 Million LUNA entrusted to us at the ATH. We organized the first NFT Hackathon on Terra, partnered and invested in key Terra Protocols, and worked to educate the space on ways they worked, and contributed to our space. We built the first audited NFT smart contracts on Terra, and first NFT on chain voting.

That was just the beginning. For months, we have been working on even bigger things in the background — initiatives that would have put Terra NFTs on the wider map. Ones that will sadly not materialize in the current situation. We mourn our lost work, but do not regret it.

Our core team has created the collection for Terra. The traits celebrate protocols and builders that we are honored to build alongside of. We will not change them. There will be no retrospective snapshots — we are here to preserve history, not to erase it. This collection had a narrative and a mission, and we will not twist it against its nature. Galactic Punks will continue — on Terra & Terra 2.0.

No matter your personal opinion about Terra 2.0, it is an opportunity to save some of the vibrant ecosystem and developer power that we love. The DAO should follow the migration, in order to have an opportunity to rebuild value alongside other contributors. Below we’ll outline our step by step plans for decentralizing control over the remaining funds and the collections/DAOs migration to Terra 2.0.

1) Elect multi-sig council members

We propose voting in a group of 9 DAO members to make up a multi-sig council whereby every transaction will require 5/9 approvals. These members will be chosen from the trusted Council members and Ambassadors that were democratically voted in by the DAO. It will also include 2 members of the team, to facilitate transition and communication.

This group will be proposed to the DAO and voted in on-chain.

2) Establish multi-sig wallet & send funds

Once the council is agreed upon, we will establish a Gnosis multi-sig and send a test deposit from the core team multisig mentioned above. If all is fine, we will send the remaining USDC and ETH to the new council operated multi-sig.

3) Migrate Galactic Punks collection to Terra 2.0

Once Terra 2.0 is live, we will work to migrate the Galactic Punks collection over from Terra Classic. The precise mechanism hasn’t been determined yet, but it will likely involve a snapshot on Terra + airdrop on Terra 2.0 (No snapshots have been taken yet, and when we take one it will be announced transparently, in advance). We’ll keep the community informed. Punk staking makes no difference to a potential future snapshot — you can keep staked or unstake if you would rather keep them in your wallet.

Additionally, migrating to Terra 2.0 might allow for some NFT contract updates and metadata fixes. We hope that Cosmos NFT ecosystem will keep growing, and upgraded NFT standards will make it more interoperable and free long term. Stay tuned.

TLDR: when we migrate, you will own your GPs on both chains — Terra and Terra 2.0.

4) Finalise the DAO v2 on-chain voting so anyone can post a proposal

Our mission all along has been to fully decentralize the Galactic DAO. Before all the madness, we were so close. We’re proud to say that we were the first truly on-chain NFT DAO and have has 2 proposals go live where DAO members could connect their wallet and vote independent of Discord (The voting supports staked punks, and is weighted by amount of punks you own).

As long as the DAO supports it, we will continue working towards the final form of Galactic DAO v2 on Terra 2.0: a DAO hub where anyone can submit proposals similar to that of Terra, Mirror, and Anchor. This will require more developer work, and once we have the final estimates, we’ll let the community decide if they want to continue funding it. More details regarding timeline will be shared once we have a better picture of all that’s going on with Terra 2.0

5) Open source everything we have built on Terra

If all goes accordingly, our aim is to open source all of the Galactic DAOs contracts for other NFT communities and DAOs to move on-chain. We hope it can help light up the ecosystem we cherished most, and help other teams build their own iterations of staking, minting, and on-chain voting.

Final Words

We were — and are a web 3.0 collective using NFTs as a gating mechanism and the events of the past days do not diminish the amazing things we have accomplished.

As a team, we are overwhelmed by sadness — but also by pride, when we look at what GP has become. We will share another medium post with a summary of the Projects History soon, celebrating our joint work as a community any blockchain could be proud of.

If you have any questions or concerns, or most importantly if you need some support through these tough times, please reach out to a DAO council member, ambassador or GP team member. We’re all here for you.

Best,
Galactic Punks Core Team.