KIP: Dissolution of the KARRAT DAO and Transfer of Assets

Active Proposals
1

Summary

This proposal begins the dissolution of the KARRAT DAO over a 6-month period. It includes revoking all authority from Webslinger (the Cayman Foundation), burning 50% of KARRAT held by the DAO, and transferring the remaining KARRAT to AMGI Studios, creators of My Pet Hooligan, to complete game development and long-term integration of KARRAT into the MPH ecosystem.

Motivation

The KARRAT DAO has operated under the jurisdiction of a Cayman Islands foundation (Webslinger), which has repeatedly failed to uphold transparency, accountability, and public engagement. Despite controlling 14% of the total KARRAT supply and being tasked with overseeing DAO operations, the Foundation has:

  • Provided no public-facing reports on its spending, salaries, or token movements

  • Remained completely shielded from U.S. jurisdiction, making accountability impossible

  • Used its legal positioning to hide decision-making, avoid community scrutiny, and enrich internal actors at the expense of the ecosystem

  • Failed to represent or engage with the actual KARRAT community, developers, and holders

This lack of transparency and Cayman-based immunity has made the Foundation a net negative to the KARRAT ecosystem. It has consumed treasury funds while delivering minimal value and blocking reform. The DAO has become paralyzed by legal bottlenecks and multisig misalignment, and this proposal offers a clean path forward by dismantling the structure that has enabled this.

Specification

  1. Dissolution Process
    • 6-month wind-down process beginning immediately after passage of this proposal.
    • All governance operations, votes, and administrative functions under the DAO will cease.
    • DAO forums, multisigs, and governance tools will be deprecated.

  2. Removal of Webslinger
    • The current legal structure under Webslinger (Cayman Foundation) will be terminated.
    • All multisig control, assets, and treasury-related authority will be removed from Webslinger.

  3. KARRAT Treasury Plan
    • A snapshot will be taken at the time of KIP approval to document total DAO-held KARRAT.
    • 50% of KARRAT held by the DAO will be burned by sending it to a verified burn address.
    • The remaining 50% will be transferred to AMGI Studios for further development of My Pet Hooligan and integration of KARRAT utility.

  4. Legal & Transition Structure
    • If required, a new legal entity will be created (or repurposed) to execute the wind-down and transfer in compliance with Cayman or other applicable jurisdictions.
    • A final treasury report will be published before the DAO fully dissolves.
    Rationale
    • Eliminates dead-weight DAO overhead.
    • Removes centralization risks under Cayman-based foundation.
    • Cuts KARRAT supply , improving tokenomics.
    • Directs value to the ecosystem actually building and shipping.

Implementation Timeline

Phase Date Range Action
Phase 1 Month 1 KIP approved, snapshot taken, legal wind-down initiated
Phase 2 Month 2–3 50% KARRAT burned, multisig control removed from Webslinger
Phase 3 Month 3–4 Remaining 50% transferred to AMGI Studios
Phase 4 Month 5–6 DAO tooling, website, and voting portals shut down