Withdrawal Governance

What is it for

Please read the previous section on Treasury Reserve Mechanism before continuing here for better understanding.

The withdrawal governance contract provides a way to extract the treasury reserve from the Catto Katsu contract, by initiating a vote among Catto holders. The funds can only be withdrawn if more than 50% of the votes are positive.

Why the Need for Treasury Backup Withdrawal

We are pretty certain that there will be no need for withdrawal, for the foreseeable future. However in an event, for whatever reason, when we need to support new features, resolve a previously unknown bug, etc, we may need to migrate the Cattos to a new contract.

Should this unlikely event arises, if we don't provide a way to also migrate the treasury reserve funds, it will be lost, forever. We don't think this is being a good steward of the community resources.

Migration of contract is fairly common, and has been done successfully and securely for much bigger and more complex contracts, eg. PancakeSwap.

Implementation Details

We will do a community vote, and do away with the ability to withdraw the funds in treasury reserve if majority votes for it. Do note that this will mean that the ETH in the contract will be unrecoverable, forever.

Initiate

The withdrawal governance contract used for voting will be a separate contract. In order to kickstart the process, the team will have to initiate the voting process on the contract, providing the address of the proposed new contract for funds to be transferred received. The voting will then be live for 5 days.

Voting

Catto holders will then have the 5 days to cast their votes. When casting votes, the contract will count the the amount of Cattos the voter is holder, and will add the equivalent number to the option the voter has casted the vote for.

The Cattos that have been counted towards a vote will be tracked by the contract, and it will not be possible for holders to vote, and then transfer the Cattos to another wallet, and re-vote.

Vote Conclusion

Once the voting period concluded, if the amount of positive votes is greater than the negative votes, the team will be allowed to invoke a treasury reserve transfer to the proposed contract stated during the vote initiation (which will be made known and reviewed by the community beforehand).

Within the original Catto Katsu NFT contract, from which the treasury reserve is to be drained, it only allows a transfer to a contract address, and thus it will not be possible for the funds to be transferred to a normal wallet address.