1.7 Buyout Tender Offer
Conditions: users who hold no less than 15% Shards (the Offeror) can propose a buyout. Only one user can propose a buyout at one time. When the Offeror fails, other users can then propose another buyout.
Process:
Apply for "Buy Tender Offer" and initiate a proposal: The Offeror proposes a 'Buyout Tender Offer', and then in the Marketplace of ShardingDAO stakes the Shards he or she has and set a Price X which must be higher than the Shard's market price defined by the DEX secondary markets. In addition, he or she will need to stake some cryptos that worth no less than the remaining Shards in circulation according to the Price x that he or she just set. (For example, if the Offeror holds 15% of the Shards, the token to be staked needs 85% Total Amount of Shards Price x).
Voting: A voting starts after the Offeror stakes Shards and cryptos as required. Users who hold Shards can vote on it. If the result of the voting suggests a pass, the Buyout is considered successful. Otherwise, the Buyout fails.
Votes Validation: Votes are Shards. 1 Shard = 1 Vote. Each user can only vote once, and it has to be done with all the Shards in possession. The Offeror cannot vote. Only the Shards owned at the time of the Buyout proposal will be count as valid as Votes. Any Shards obtained after the Buyout proposal will not be considered valid. If some Shards are collected after the Buyout proposal, they will not be count valid as votes.
Approval: negative Votes / (total number of Shards - number of Shards staked by the Offeror) < = 25%.
Voting Duration: the voting will last for 3 days once a Buyout proposal is raised.
If the voting result is a pass:
Offeror: the staked shards will be burned and the NFT's ownership, as a whole, will be transferred from the contract to the Offeror.
The Protocol: The Protocol will retrieve the 5% Shards and cryptos from the DEX secondary markets. Among them, the Shards will be burned and the Protocol will prepare a certain amount of cryptos whose value is equal to the burned Shards, priced at Price x. Then, these two parts of cryptos will be sent to the Developor DAO Fund and the Platform Fund, who receive 20% and 80% respectively.
If the voting result is a rejection:
Offeror: staked Shards and cryptos need to be redeemed manually by launching a separate transaction. And if they are not redeemed, another Buyout Tender Offer can be proposed.
Other users can now initiate other tender offers, even if the previous Offeror has not yet redeemed the staked.
3.Shards Collection: Once the Buyout succeeds, the ownership of NFT will be transferred to the Offeror. Other users who hold Shards will be forced to exchange Shards for cryptos at Price x. All Shards will be burned after a successful collection.