AIP-493: ApeCoin Launch Contributor Transparency & Disclosures

ApeCoin Launch Contributor Transparency & Portfolio Company Disclosures:

TEAM DESCRIPTION:

Nova (Leo) - Co-founder of Other Page (Strategy, Marketing, & Operations). Co-founder of Vora Labs (web3 art & gaming studio). Seasoned SaaS marketing & revenue executive with multiple scale-ups & exits.

PROPOSAL DESCRIPTION:

When ApeCoin launched the ApeCoin Launch Contributors were given 140,000,000 tokens (see ApeCoin about section for breakdown: ApeCoin for the Web3 Economy). While all launch contributors were not disclosed, we know that two of those launch contributors who are actively involved in the ApeCoin DAO are Horizen Labs / Horizen Labs Ventures & Animoca Brands.

Over the past year, more and more portfolio companies, partners & customers of Horizen Labs / Horizen Labs Ventures and Animoca Brands (aka Apecoin Launch Contributors) have put up AIPs in the ApeCoin DAO and received funding. While this is fine, I believe that with ApeCoin’s price at an all-time low, we need to provide more transparency to the DAO voters regarding proposals submitted by ApeCoin Launch Contributors and companies (portfolio companies, partners & customers) affiliated with them.

I believe it is imperative for the DAO voters to know the following information before voting on any AIP from a portfolio company of one of ApeCoin launch contributors:

For portfolio companies of ApeCoin Launch Contributors:

  1. The portfolio company must disclose the name of the Apecoin Launch Contributor(s) on their cap table (Horizen Labs, Horizen Labs Ventures, Animoca Brands, or any combination of the three).
  2. The portfolio company must disclose the total percentage of their company owned by the Apecoin Launch Contributor(s).
  3. The portfolio company must disclose the total amount invested by the Apecoin Launch Contributor(s) to date, including all private and public rounds that the launch contributor participated in.

After each AIP is passed, a KYB is performed by the DAO, during which the cap table is submitted by the portfolio company. If the DAO’s legal team finds that the above disclosures were not made or were made inaccurately, then the AIP legal process is halted, and no funds are distributed to the portfolio company.

For customers, partners or vendors of ApeCoin Launch Contributors:

  1. The customer, partner, or vendor must disclose the name of the ApeCoin Launch Contributor (Horizen Labs, Horizen Labs Ventures, Animoca Brands, or any combination of the three) that they work with and the nature of their relationship (customer, partner, or vendor).
  2. The customer, partner or vendor must disclose the length of time (in months and years) that they have been in business with the ApeCoin Launch Contributor.

BENEFIT TO APECOIN ECOSYSTEM:

Improves transparency for DAO voters and keeps Apecoin Launch Contributors more accountable.

DEFINITIONS:

ApeCoin Launch Contributors - Animoca Brands & Horizen Labs / Horizen Labs Ventures

Customer - an individual or organization that purchases goods or services from the ApeCoin Launch Contributor(s)

Partner - an individual or organization that collaborates with ApeCoin Lauch Contributor(s) to achieve mutual goals.

Vendor - a person or company that supplies goods or services to the APeCoin Launch Contributor(s)

STEPS TO IMPLEMENT:

After this AIP is passed we will make the disclosure items outlined above required for portfolio companies, partners & customers of ApeCoin Launch Contributors when submitting an AIP idea.

REPORTING EXPECTATIONS:

Within 12 months of the proposal passing and being implemented we will prepare a report that contains all AIPs that were put up by companies affiliated with the ApeCoin Launch Contributors and total amounts raised. This repoirt available via my personal X/Twitter account (@prollynuthin). In addition to this, I will create a shared Google Sheet that they will update after each round of AIPs.

OVERALL COST:

Total amount requested from the ApeCoin Ecosystem Fund = $0.

1 Like

Assuming such disclosures to not conflict with existing confidentiality agreements in place between the companies in question, I think this is a fair ask and a step towards greater transparency.

3 Likes

This is a great proposal. More transparency and disclosures are needed in our DAO.

I don’t think that’s an issue because disclosing that you’re funded by an ApeCoin portfolio company isn’t subject to privacy rules. Even FTC disclosures don’t ask for private details, other than for creators and sponsorships to make the disclosure.

The one problem that I do see, is similar to one I experienced whereby I could never get the Ape Foundation to disclose who we loaned money to, and which was sitting on our books. I had to go do my own sleuthing; and with the help of third-parties, found the info (it was Wintermute, another launch partner/investor). You can read more about that below.

RFC - Ape Transparency Reports

I’m a bit confused, there’s not a single example of a Horizen Labs portfolio company being funded by the ApeCoin DAO. We don’t have a VC/investment arm or portfolio companies.

We have integrated zKVerify into ApeChain, a product we’ve worked on, at cost to us with 0 funding from the DAO if that’s what you’re referring to.

If that’s the case then the disclosures won’t matter as all companies applying won’t have Horizen Labs / Horizen Labs Ventures on their cap table.

Just for context, HLV is a separate, unrelated company to Horizen Labs with no coordination, cross-visibility, or cross-communication at this point in time. We have no visibility into their operations (and so we have no idea if companies on their potential cap table have put forward proposals). :slight_smile:

True. However, proposals such as these two below in which Horizen is involved and benefits from, would likely qualify even though they are self-disclosing.

Also, Horizen’s wallet voted in both AIP-378 (6.7M) and AIP-454 (4.3M) even though the results would have remained the same had they not voted.


AIP-454: The BANANA Bill: Apes Gotta Eat

“Horizen Labs will act as the Strategic Accounts Manager. Their efforts will focus on, among other things, (i) researching and identifying projects that may be suitable for the Banana Program, (ii) developing relationships with these new projects, (iii) gathering competitor data and conducting market research, and (iv) generally promoting and building brand recognition for ApeChain.”

In this one, Horizen is directly involved and being paid as a “Strategic Accounts Manager”


AIP-378: ApeChain Bid // ApeChain Developed with Arbitrum Technology with Growth Led by Horizen Labs

“Horizen Labs will not seek any form of compensation from the ApeCoin DAO for the scope of work outlined herein, with the exception of revenue generated from participation in ApeChain’s DAC.”

The Arbitrum Foundation is funding it as part of the proposal from which Horizen will receive compensation.


Thanks for the clarification Spencer, I assumed both were the same. I’ve updated the proposal to include Horizen Labs Ventures.

Yup, that’s usually the case when companies split into different entities.

And without the disclosures, there’s no way of knowing if any entities previously funded by HLV have come through the DAO for funding.

The main issue here is that HLV lists Yuga, Animoca, Sandbox and various other Web3 entities as clients. Which means that given all the proposals which have come through here, there’s a very good chance that one or more of them do have HLV on their CAP table.

Also, which entity controls the voting wallet? HL or HLV?

Yeah, just wanted to clarify that we don’t have portfolio companies on our end.

Disclosures and transparency are important in my personal opinion. With Banana Bill for example we and all others involved have spent a lot of time making sure there’s clear conflict of interest forms and disclosures for folks going through that program, so not trying to say there should be no transparency, etc… (usual disclaimer that that is not a direct or official endorsement of this particular AIP, just stating personal opinion).

I can’t speak to any of HLV’s clients or cap table because I/we just don’t know at this point any more than anybody in the general public would.

To your last question, Horizen Labs voting is controlled solely by Horizen Labs.

2 Likes

Yeah, I didn’t think so, seeing as you’re on the Horizen Labs side of things. To be honest, most people don’t actually know the difference. And I didn’t actually figure that out until last year during the ApeChain voting fiasco during which Herve surfaced on our radar here in the DAO. Hence this exchange that you and I had during the Banana Bill discussions which solicited this response from you.

Indeed.

Also, I too have a similar proposal that’s currently going through process.

AIP-475: Fast Track Proposals and Enforce Leadership Transparency

Thanks for the clarity and candor. And yes, that’s the way it should be.

Thanks for the clarity and candor.

While I’m sure that the proposal author wasn’t intentionally singling out Horizen - hence the reason that I posted the AIP examples to provide clarity for my comments - I believe that we’re all on the same page here and that transparency should be key.

This seems fair, reasonable, all upside to the community, and zero downside to honest authors putting up quality AIPs

Has my preemptive YES vote

I’ve heard this said multiple times and simultaneously have no idea which companies those are. Would love to have this transparency

1 Like

Hi @Nova ,

The community feedback period for your proposal would be ending in roughly 24 hours.

  • If you’re content with the feedback received, your next steps are to finalize your proposal using the AIP Draft Template.

  • A moderator will reach out to the author to finalize the AIP Draft. Upon receipt of the final Draft, we will review and provide instructions on the next steps.

  • Are you ready to proceed to the next phase or do you wish to extend community discussion for another 7 days?

We look forward to hearing from you.

-@Facilitators

1 Like

This topic was automatically closed after 7 days. New replies are no longer allowed.

Hi ApeCoin DAO Community,

@Nova has completed editing their AIP Idea to be their AIP Draft.

This proposal has been assigned the AIP ID Number 493.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

Hi ApeCoin DAO Community,

Our team has reviewed and discussed @Nova 's AIP Draft and have sent a list of initial questions. We await answers.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

Hi ApeCoin DAO Community,

@Nova has responded to our questions and they are in our review once again.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

Hi ApeCoin DAO Community,

We have no further questions for @Nova . This AIP is now under Administrative Review.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

Hi ApeCoin DAO Community,

After review, this Topic submitted by @Nova has been “Returned for Clarification”. The ApeCoin Special Council waits for answers, and the community will be notified whenever the author responds.

Kind Regards,

-@Facilitators