Proposal: Ragequit and Citizenship
Given the sunset resolution did not pass, the DAO must create a path for dissatisfied members to permanently leave the DAO and claim their pro-rata share of the treasury. Since there are many tokens in the Kong Land ecosystem, and there exist some vulnerabilities to the ragequit process when the cost of token acquisition is less than a pro-rata share of the treasury, we have determined that only eligible voting citizens holding $CITIZEN ERC-721 tokens and having signed the charter will be eligible for ragequit. Such tokens are hereafter referred to as an “Eligible Token.”
It is understood that the general structure of the ragequit function will follow the Molochv3 contract standard, and the Senate will deposit all remaining ETH and stablecoin assets, alongside equivalent wrapped or yield-bearing assets, to the ragequit contract. Any deployed solution will be reasonably close to the above linked implementation, with the following modifications:
- An intermediate redemption token, such as $EXILE, may be created for the sole purpose of converting an Eligible Token into a share of the asset treasury
- Eligible Tokens may only be redeemed once per snapshot address
This vote will determine whether current holders of ineligible tokens, such as $CITIZEN ERC-20 or $CTZN ERC-20, can still convert their holdings into an Eligible Token:
- $CITIZEN ERC-20 → ERC-721 burn rights are retained
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Tokens burned after the Eligible Token snapshot taken on July 12, 2025 cannot claim a ragequit share for one year from the date of deployment of the ragequit contracts.
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All Eligible Tokens will be offered a proportional ragequit share based on the Eligible Tokens at the time of claim
- Today, this implies there would be 281 shares available for one year, and 511 shares available after one year
- $CITIZEN ERC-20 → ERC-721 burns are permanently frozen at the completion of this vote:
- All remaining ERC-721s will be offered a proportional ragequit share
- (ie, those with
tokenId <= 281 || (1000 <= tokenId && tokenId <= 1011))
- All $CITIZEN and $CTZN ERC-20s are considered null and void with respect to any claims to citizenship in KONG Land
- There will be no future redemptions for $CITIZEN ERC-721, ever
In both cases: The treasury assets available for claim via ragequit includes all $ETH, stablecoins or subsequently acquired yield-bearing or wrapped assets. A subsequent vote can still renew or revoke CITIZEN ERC-20 → ERC-721 burn rights.
In Favor of Continuing to Welcome ERC-20 $CITIZENs to Join KONG Land by Burning into ERC-721
Since the inception of KONG Land the ERC-20 $CITIZEN served as the path to join the DAO. It predates the ERC-721, the formal establishment of the UNA and the treasury. $CITIZEN ERC-20s have historically been welcome to participate in the DAO conversation through the closed “# citizen” channel in Discord. And, at the beginning of this year, the DAO supplied liquidity to rebalance the market so that it is now affordable to join the DAO through the ERC-20 path.
Shutting this path down permanently is shortsighted. I believe that creating a 1 year period where only existing ERC-721 $CITIZENs receive a portion of the treasury is a fair way to allow more involved $CITIZENs the ability to exit without cutting off an important means of immigration into KONG Land. Permanently blocking a set of possible $CITIZEN shares would set a poor precedent where one group of $CITIZENs may profit over others.
One year provides ample time for “active” $CITIZENs (or at least more active) to claim a larger share of the treasury if they wish to ragequit while allowing ERC-20 $CITIZENs a path to fully naturalize after one year at which point any active $CITIZEN ERC-721 (regardless of when they burned) can claim a share upon ragequit.
There is one other important net effect from this: as we know that all ERC-20s will never burn into the ERC-721 and ragequit, there will be a larger buffer of capital available to the treasury (after one year) to pursue the refined KONG Land mission.
As ERC-721 $CITIZENs are the only ones who can vote in this snapshot their is a significant risk of the tyranny of the majority; we can easily override those who are still allowed in $CITIZEN spaces but do not have a voice in this vote. I don’t believe that’s the right thing to do.
Against Continuing to Welcome ERC-20 $CITIZENs to Join KONG Land by Burning into ERC-721
The token ecosystem of Kong Land is too complicated for new members to understand. Between $CITIZEN-20, $CTZN, $CITIZEN-721, $KONG, $LAND, and $RERRO, we have proliferated too many tokens to be legible to unfamiliar prospective members. While Alpha Citizen NFTs have historical value and intrigue, the continued use of various tokens to represent convertible shares of the NFT, and the resulting NFT as a necessary but not sufficient condition of voting, is abstruse and confusing.
There is little to no market for the NFTs, with a lifetime volume of less than 9 ETH, and the $CITIZEN ERC-20 tokens themselves have suffered illiquid markets for years with the Senate contributing significant resources to correct the LPs. Members have only successfully recruited 11 new voting members with $CTZN, and the value of using such tokens instead of simpler alternatives remains to be seen.
Rather than re-enabling claims on a defunct token, it would be better to lock the original token holders to represent a historical easter egg, and to focus on simplifying the ecosystem to merely LAND, or some other less complicated mark of voting membership.
While this vote is subject to a tyranny of the majority, the non-voting members have had more than three years to claim an ERC-721 token and sign the charter, securing a vote for themselves. They have elected not to do this and have chosen to speculate on the alternative tokens instead. They never converted to a voter, and never used the tokens to recruit more people to the DAO. They merely created a liquidity crunch and made citizenship harder to get for new members
Proposal: Mission Refinement
There are six paths the DAO could pursue to generate revenue. Each path is listed below, and can be voted on by approval, with illustrative examples of potential revenue-generating projects. The DAO will create working groups to prioritize the development and delivery of revenue-generating ideas, and the Senate will fund such working groups at its discretion up to 18 ETH over the next 12 months.
The Senate will move all remaining liquid treasury into a 70/30 split between ETH-based LRTs (eg 10% ETH, 15% wstETH, 15% weETH, 15% rETH, 15% rsETH) and USD equivalents (eg 10% USDe, 10% USDS, 10% crv 3pool). The Senate may simplify the LP management at its discretion, using providers such as Morpho or Beefy.
The voting options are as follows:
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No-code chip management & trusted service registry
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Crypto-native point of sale & physical crypto cash
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Delivery of real world assets & supply chain provenance
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Network state management & reporting
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Proof of asset L1 blockchain
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Social club
No-code chip management & trusted service registry
The DAO has already invested significant resources in the development of the Ethereum Reality Service (“ERS”) but has not seen much promotion or adoption of the services. A working group might be created to promote the existence and utility of ERS at appropriate venues, attempting to onboard large brands and individual creators to chip their products and refer to ERS as their canonical source of authenticity. Additional development work may be required to produce no-code chip management tools and to demonstrate the utility of the registry for widely-used applications.
Crypto-native point of sale & physical crypto cash
The initial excitement around Kong Land centered on the production of Kong Cash, Offline Cash, and more recently, Burner disposable hardware wallets. The rising global prevalence of crypto Point of Sale (PoS) solutions such as Strike’s adoption as the de facto payment rail in LatAm, or Coinbase Commerce’s collaboration with Shopify, alongside the past success of payment rail adoption from Square readers, indicate there may be an opportunity to grow market share in the nascent crypto processing space through PoS systems. Working groups may be assembled to build payment integrations for existing PoS platforms to accept Kong HaLo transactions, to encourage adoption among proprietary merchants, and otherwise to build offline payments protocols.
Delivery of real world assets & supply chain provenance
Supply-chain provenance and chain of custody are important unsolved problems in peer-to-peer marketplaces. The existence of cryptographically unique proofs of authenticity enables a verifiable chain of custody and an ironclad protocol for passing monetary responsibility from party to party in the course of delivery and distribution. A working group may be assembled to source existing suppliers with supply chain verification challenges, auditors who validate these chains of custody, and insurance firms who investigate each incident to pay out claims, and design and build appropriate crypto systems to fit their usecases.
Network state management & reporting
Kong Land holds itself up as a “crypto state,” a term we coined before the ever prevalent meme from Balaji Srinivasan which he dubbed the “network state.” There is a lot of overlap between these ideas, and the sovereignty of network states ultimately derives from their hardware and network security guarantees. The Network State Conference is coming in October, and this represents an easy Schelling point to discover the particular challenges of existing network states and ensure Kong Land is producing services that meet the needs of these emerging nations, similar to its past work producing passports for CabinDAO, Metafactory, BeadsDAO, and others. Working groups may be assembled to improve the Agora to produce network state performance KPIs, to recruit growing network states like Prospera or Praxis, and to build tooling for their operations.
Proof of Asset L1 Blockchain
A persistent issue in running blockchains is the essential anonymity of miners on the network. Because it is cheap to produce identities, it is necessary to run expensive Proof of Work or Proof of Stake systems to lower bound the cost of attestations to the network. Given a network with physical constraints on the manufacture of new identities, it is possible to create more efficient consensus and state propagation to all participants. Working groups on this project may be formed to establish tokenomics and protocol performance parameters for such a novel network, and fund the creation of the minimum testnet.
Social club
If Kong Land is collectively out of ideas or too busy to push forward the state of the art, we can always chill and have fun at various events. 30 ETH in treasury can pay for pop-up embassies at a variety of conferences for the forseeable future. Working groups can plan parties, concerts, hackathons, and other paid events for people to enjoy on the crypto conference circuit.