PIP-50 l Introducing Parallel V3: A Modular, Scalable & Decentralized Stablecoins Protocol

[MimoLabs]

@starny

At the end of the Parallel V3 introduction proposal, it is stated that MIMO paid 200K for the 2 separate audits by Bail and Certora. I understand that MIMO takes the formal position of supporting the protocol and is a “contributor” but let’s be transparent here: WE ARE ALL ON THE SAME BOAT. It makes no financial sense for the DAO to immediately reimburse the entire 200K USD back to MIMO when we have not found product market fit yet. That represents almost 20% of the DAO’s current treasury and we can surely make much smarter use of that precious capital. MIMO Labs surely has no immediate urgent need for 0.2 million when they have 340 million while we only have 1 million.

Here is my counter suggestion: Please formally remove and re-word the reimbursement of the 200K audit fees. I “highly and strongly” encourage for the fees to be reimburse in either of 2 ways: In 24 months installments or in 1 lump sum after 12 months when Parallel V3 has found better product market fit and we have grown our DAO treasury exponentially. This way, there is stronger reasons for all of us to find success.

We kindly agreed to pay the audit invoices up front following Cooper Labs’ requests, in order to speed up the release of Parallel V3 (acceleration requested by DAO members) and avoid losing several weeks of the governance process before starting the audits.
But Mimo Labs is not a foundation at the service of protocol, nor a charity, still less a bank. Nor do we intend to become a bank offering 0% under-collateralized loans in the coming weeks or months.
Moreover, the $200k can already be seen as an under-collateralized 0-rate loan.

The Parallel Protocol is a decentralized company, owned by holders (PRL). In order to develop new products it is necessary to spend money. Investment precedes profit, not the other way around.

What’s more, implicitly say that we are no longer investing in the protocol while trying to extract maximum value from it is very surprising given our past and present contributions. As of today, we have 3 people working on Parallel Protocol, including legal, product, bd and communications.

We therefore ask that the $200k advanced to the protocol be reimbursed in a single payment, as with all previous audits:

• PGP-23 l Bridging Module Audit Retroactive Funding
• PIP-46 l Introducing Parallel Tokenomics v2.0
• PGP-26 l Protocol Fees Computation Audit Retroactive Funding