[LFRC] Mycelium’s Future Option #1: Proposal to Acquire LYRA by Token Holders

Simple Summary

Today, a Mycelium DAO proposal was made entitled “The Future of Mycelium”, with three options for how Mycelium DAO and the MYC token will move forward. Option #1 of the proposal is entitled “Proposal to Acquire LYRA by Token Holders”, which involves the acquisition of LYRA tokens by MYC and TCR token holders, and is the subject of this LFRC.

Please read the proposal in full here: Snapshot


Under Option #1, Eligible Token Holders (holding 450,000,000 MYC/TCR) will acquire LYRA tokens in exchange for Mycelium Treasury Assets (exclusive of MYC and TCR, which will be burnt), at an effective rate of 15 MYC/TCR : 1 LYRA. In exchange for the LYRA offered, Lyra DAO will receive Mycelium’s Treasury Assets. A Zapper link to the live value of the Mycelium Treasury Assets is here: Link (please note that Zapper does not exclude MYC and TCR tokens).


This LFRC would increase Lyra DAO’s treasury by the value of Mycelium’s Treasury Assets.


In the Mycelium DAO proposal, several options for the future of Mycelium DAO and the MYC token are put to a majority vote to determine the one option favoured by MYC and TCR token holders.

Voting on this proposal is open for 7 days. Option #1 may not succeed Mycelium DAO governance, in which case this LFRC will be redundant. If Option #1 succeeds Mycelium DAO governance, it must be seconded by Lyra DAO governance.

If Option #1 in the Mycelium DAO proposal succeeds, and this proposal succeeds:

  1. Lyra DAO receives the Mycelium Treasury Assets (as defined in the Proposal). In total, using a 30 day TWAP up to the date of this LFRC, Mycelium’s Treasury Assets (excluding MYC and TCR) are worth U$1,934,218.27.
  2. Eligible MYC and TCR token holders receive 30,000,000 LYRA tokens. In total, using a 30 day TWAP up to the date of this LFRC, 30,000,000 LYRA tokens are worth U$2,380,961.90.
  3. In comparing 30 day TWAPs, this transaction represents approximately an 18% liquidity discount on LYRA tokens.

LYRA will begin vesting to Eligible Token Holders on a pro rata basis over three months, starting on the day that Option #1 is chosen (if this Option #1 is chosen). Asset claims will occur via smart contracts accessible directly or through an interface on the sub-domain, lyra.mycelium.xyz. Eligible Token Holders will be able to claim for vested LYRA tokens at any point during the 3 month vesting period, or for at least 21 months after the vesting period. In total, Eligible Token Holders will have at least 24 months to claim their LYRA tokens, from the day that Option #1 is chosen (if this Option #1 is chosen).


Why were particular design decisions made? Describe alternate designs that were considered and related work.

The Mycelium community is extremely aligned with Lyra in creating and building a new standard for DeFi. Lyra would be inheriting a community of builders and creatives that would help to continue to push Lyra forward to create a new decentralised standard.

Test Cases

Not applicable.

Copyright Waiver

Copyright and related rights waived via CC0 2.

Thanks for the proposal @Mycelium - this is certainly an interesting proposition for the DAO. I’m in favour of diversifying part of the treasury since it’s heavily dominated by LYRA.

I don’t think the DAO should be holding ARB/LINK/BAL/TOKE. It is best positioned with BTC, ETH, stables and LYRA. Is it possible for Mycelium to swap some of these assets before the transaction takes place?

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Interesting proposal!

Would be great to have the Mycelium community integrating into the Lyra one.
As per a treasury point of view, the exchange rate is quite favourable to Mycelium’s insterest, not sure if fair to Lyra’s side.

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I need to do some more research, but initially I to like the idea if the assets are converted to Eth, BTC, and stables prior to this swap.

I like the idea of diversifying Lyra’s treasury but in order to accept a swap at a discount, I agree with @mjs and others that it would need to be in more liquid stables or ETH. Would @Mycelium be open to a longer lock and vesting period? I would suggest a 12 month lock and 24 month linear vesting similar to what we have seen on other discounted token sales and raises. It seems hard to avoid token dumping with just a 3 month lock.

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Would Mycelium use the Lyra tokens they receive in Lyra Governance?


Vote was already passed by Mycellium, and they voted not to go with this proposal. We can close this up.