SIP| Renew SIP-7

Author: Wildfire DAO
Status: Implemented
Type: Treasury Management
Implementor: Rare DAO Governance Council
Sponsor(s): @SuperRareJohn
Created Date: 08/15/2022


Extend SIP-7 and increase the number of RARE allocated to 40MRARE. Additionally remove the expiration date so prevent the need to extend again next year.


SIP-7 has expired and it would be helpful for the DAO to be able to continue to engage market makers. Additionally this SIP removes the expiration clause as the DAO will likely wish to continue with these types of engagements moving forward.

Market making buttresses efficient markets, reduces vulnerability to price swings, and in the case of $RARE – increases opportunities for potential buyers seeking to leverage the utility of of the worlds finest curation token. Some market making measures involving increased $RARE circulation are important for ensuring stable and healthy markets, but not without responsible process and transparent decision making situating the community at the helm.


This SIP contemplates several methods to improve $RARE liquidity and acts as an ongoing request for comment from the $RARE community to suggest market making measures to improve $RARE liquidity. In the interest of efficiency, this Proposal seeks to establish the Council’s independent authority to enter into transactions with third party market makers and/or liquidity providers subject to procedural and transparency obligations. In the spirit of decentralization, this proposal also acts as a call to the community to suggest more user oriented, trustless forms of liquidity provision.


Up to 40,000,000 $RARE (or equivalent value in ETH or USDC) may be made available for certain liquidity and market making activities designed to improve liquidity for $RARE as identified below.

Approved Methods of Providing Liquidity

  1. Loan Agreements (including purchase options) with Council-Approved Market Makers

  2. Discounted Purchase of $RARE to Council-Approved Market Makers

  3. Incentivized Liquidity Mining Program

  4. Direct Provision of Liquidity from DAO Treasury

Procedure for Council Approving Transactions Related to this Proposal

The Council may only enter into, execute, and deploy a subsequent transaction or program fulfilling this Proposal’s purpose and relating to an approved method of providing liquidity if the following conditions are met:

  1. the transaction is approved by an informed consent from a majority of Council;

  2. the transaction is approved by independent legal counsel; and

  3. the Council provides at least fourteen (14) days public notice before each DAO Treasury transaction performed within the scope of this Proposal

Requests for Proposals

Up to 5,000,000 additional $RARE shall be set aside for the Council to dedicate to community-originated liquidity improvement proposals passed through the SuperRare Improvement Proposal (”SIP”) procedures. The passage of this Proposal would serve as a request for any community member to propose any program or transaction fulfilling this Proposal’s goals. Such community-originated Proposals must survive the ordinary SIP requirements to qualify for $RARE designated by this Proposal for market making activities. The Council may use any portion of the dedicated funds to incentivize related proposal development.


Improved liquidity, the potential to further decentralize $RARE holdings, and greater access to the $RARE ecosystem. Establishing a regulatory and community friendly precedent for coordinating market making decisions at the community level.


Regulatory risks associated with market making activities and unpredictable governance/market outcomes associated with increasing the circulating $RARE supply. Empowering the Council to make decisions approved by the DAO pursuant to this Proposal enables flexibility and quick decision making but potentially increases information asymmetries between the Council and Community, which creates certain insider trading or securities risks. Such informational asymmetries should be mitigated as provided in this Proposal, or as otherwise deemed appropriate by the Community or Council.


This Proposal will be deemed a success if the Council is able to successfully enter into market making transactions (or implement community-generated and approved proposals) while observing the transparency and notice obligations defined herein. Accordingly, the Council should attempt to disclose material aspects of transactions entered into pursuant to this Proposal to the extent such disclosure doesn’t violate any duties of confidentiality. In order to reduce information asymmetries, the Council should make its best efforts to provide early notice and details about the anticipated aggregate sum of $RARE to be released into the market. The Council should consider nominating or otherwise deferring to community members who can provide technical insights on $RARE markets routinely after market making transactions made pursuant to this Proposal.


In light of the recent proposal to activate RARE staking - this makes a lot of sense.

There is definitely a question to be had around how liquidity is allocated but overall am in favor of this proposal.


Totally agree the the how is important to think through. I’m happy to support this SIP and move it forward.

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@SuperRareJohn Thank you John! The SIP has been updated to reflect your sponsorship.

@WildfireDAO @Wildfire It’s a bit last minute but if you’re able to attend the DAO town hall #35 today at 2PM ET, that would be great! :point_right: DAO Town Hall #35

If you’re not able to attend today, the next town hall will be on Sept. 13 2PM ET with a little more lead time.

Hey there,

Apologies about not making it to this town hall, we had prior commitments at that time but we will be at the on on Sept. 13!


@Wildfire No worries, it was definitely last minute! Looking forward to having you on Sept. 13!

@WildfireDAO Thank you for joining the town hall today! :clap:

:film_projector: A recap of the RareDAO town hall #36 9/13/23 can be found here.

:ballot_box: This SIP has fulfilled the DAO requirement and has moved forward to Snapshot voting. The voting period closes next (7 days) Wednesday 9/20 at 3:30PM EST.

Thanks for linking the town hall discussion on this SIP-7 market making proposal. It was helpful to hear some of the commentary and thinking around this proposal.

As the community evaluates this proposal and puts together specific terms, please feel free to use the resources we’ve put together on comparable MM deals at and this summarized report from Q2’23 here.

We’re excited to see this proposal move forward and – more broadly – to see DAO deals like this one become more commonplace and more transparent.


Update: Community voting for the [SIP-17][Ecosystem-funding] Proposal to Renew SIP-7 With Two Modifications has met quorum and closed in favored for moving the proposal forward.

The foundation and council have entered into an agreement with This can be seen in the transaction here, Safe{Wallet} – Transaction details

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