230,000 TIME Whitelisted For Wonderland Rage Quit

230,000 Time Whitelisted For Wonderland Rage Quit
230,000 Time Whitelisted For Wonderland Rage Quit

Wonderland.Money has started the whitelisting process to “rage quit” the DeFi protocol and receive a share of the remaining treasury.

To wind down – or not to wind down?

Undoubtedly, Wonderland was one of the biggest DeFi flops in early 2022. After it came to light that the project’s CFO was a convicted criminal tied to the now-defunct exchange QuadrigaCX and a series of treasury mishaps, the community was split on whether the project should even continue. 

A governance proposal to wind the DeFi platform down was rejected in January by only a close margin, which prompted Frog Nation mastermind Daniele Sesta to quit the project, leaving it without clear leadership. A later proposal titled “Tell Dani that you still love and trust him” failed, as 76% of the participants voted “Dani – I’m still mad at you”.

Without its multisig stewards, Wonderland lacks the ability to execute token buybacks, which were used as a stability mechanism for the TIME token. While some users apparently want to continue the project, it is not clear who will get multisig rights and how it will take until buybacks kick in again.

Details about the Rage Quit process

In order to resolve the issue and give token owners a chance to quit without having to wait for buybacks, the community decided to implement a “Rage Quit” mechanism. This allows users who have previously staked and wrapped TIME into wMEMO tokens to exchange their wMEMO and receive a share of the protocol’s treasury. It is estimated that the backing price per wMEMO amounts to roughly 38,300 USD.

The decision to implement the Rage Quit option was passed in a governance proposal on Monday. In order to calculate the exact backing price, token holders must whitelist their wallet address by voting yes in this governance. Once the whitelisting ends the remaining Wonderland team will fund a smart contract, through which whitelisted users can withdraw their funds.

So far, the whitelisting option has received votes by more than 230,000 TIME. This amounts to roughly one-tenth of all TIME tokens in Wonderland’s staking contract.