Authored by: FlapJackson
Reviewed by: Milamber, Jcrew, ParallelAiRev
Summary
This proposal outlines ParagonsDAO’s intentions to transfer our full Parallel NFT collection and transition our Bond (Paragons Alliance) to ParallelAiRev, in exchange for USDC liquidity. Paragons’ future strategy would effectively focus on treasury preservation and maximizing yield, while the Parallel assets would move to the top ecosystem contributor and KOL who intends to onboard all active Paragons Alliance players and supply them with the cards through one or more Echelon Bonds.
Motivation
Since ParagonsDAO’s inception, it has been our goal to allow players with little to no capital to earn PRIME through Parallel gameplay. We designed our business models around this goal. Through our proprietary “Gear” program/lending model, supplemented by Echelon’s Bond platform, we’ve managed to supply over 440 players with Parallel cards and enable their PRIME earnings at no upfront cost to them.
To date, our revenue projections have not played out, and our returns have not lived up to the expectations of PDT holders, to whom we are accountable. As a result, Paragons has been reducing in size and scope over the past year, and shifting its strategy to contain costs and manage the treasury most effectively.
While Paragons still wants to see the Parallel ecosystem thrive to its full potential, for the sake of PDT holders, it was prudent to begin exploring how we might be able to eventually liquidate more than 210,000 NFTs, while ensuring our own profitability challenges did not adversely affect the Parallel community, ecosystem, and the Paragons Alliance (the largest Bond).
We reached out to ParallelAiRev, who had mentioned a potential interest in acquiring our Parallel collection. Both parties agreed upfront that any deal we discuss should minimize impacts to the Parallel player community and the Paragons Alliance Bond. He would run one or more Bonds, and supply the playable cards to players at no upfront cost. He also agreed to onboard active Paragons Alliance Bond members to the new Bond(s) (priority focus on active Gear players). We completed a detailed review of our inventory, priced our collection with a liquidity discount, and made an initial ask. ParallelAiRev made a counter-offer, and we landed at what we both perceive to be a fair compromise in between (220,000 USDC).
Statement of Intent - ParallelAiRev
“I’m deeply invested in the Parallel ecosystem’s long-term success. This acquisition is an opportunity to consolidate resources and continue pushing the game and community forward in a productive manner.
My commitment is straightforward: All active Paragons Alliance players will be taken care of. I will establish one or more new bonds to house these assets and ensure every active player currently earning through Paragons has a path to continue their gameplay. There is no intention of losing a single active player in this transition.
This acquisition allows me to expand my commitment to the Parallel ecosystem at scale while providing Paragons with the liquidity they need to pivot their strategy. It’s a fair deal that serves both parties and, most importantly, protects the player community.
I’m prepared to move quickly once this proposal is approved by Paragons’ councils.”
- ParallelAiRev
Specification
The deal:
ParagonsDAO receives:
220,000 USDC
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25% (55,000) due before card vault transition [complete]
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75% (165,000) due after card vault transition
ParallelAiRev receives
All of ParagonsDAO’s Parallel NFTs, including:
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183 Avatars
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>210,000 playable cards across all rarities
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533 keys
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27 Masterpieces
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15 Prime Drives
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8 Art Cards
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>100 Card backs (25 Parasets)
The transition:
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To ease the transition as much as possible, minimize administrative burden and gas costs, Paragons will aim to:
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Move all assets out of various Gear wallets into the main Vault wallet; add these assets to appropriate Bond pools
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Transition the Vault multisig that contains all of the NFTs into ParallelAiRev’s control (after moving out non-Parallel assets not in scope)
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Transition the Paragons Alliance Bond to ParallelAiRev’s control, assign his wallet as Bond admin and remove Paragons admin wallets. ParallelAiRev can reconfigure, rename, rebrand, and segment Bond at his convenience.
- Offer 2 weeks of Bond admin services, as required by ParallelAiRev, from our Bond Leader
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Should this approach be infeasible due to unforeseen circumstances, Paragons will instead:
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Uncache all cached cards and transfer all cards to a defined wallet owned by ParallelAIRev over a two-week period
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Focus two-week Bond admin transition services on helping to migrate active players to new Bond (prioritize active Gear Program participants)
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Next steps
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2-day period for Paragons and Treasury council voting [complete]
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Transfer of Card Vault and Bond within 14 days of proposal approval
Benefits
For ParagonsDAO & PDT Holders:
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Immediate liquidity of 220,000 USDC to strengthen treasury position
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Exits an asset class that is currently low-yielding and would be otherwise very difficult to liquidate
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Eliminates ongoing operational costs associated with Parallel
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Allows treasury to refocus on yield-generating strategies and preservation
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Provides capital for potential redeployment into liquid yield opportunities, and/or to strengthen potential future treasury bonding events.
For ParallelAiRev:
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Acquires the largest single collection of Parallel NFTs at a significant liquidity discount
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Positioned for significant upside should PRIME increase in value
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Inherits an established player base already generating PRIME rewards
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Gains immediate operational scale without need to build player community from scratch
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Strengthens position as top ecosystem contributor and increases influence within Parallel TCG
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Turnkey bond infrastructure with 2 weeks of administrative support included
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Opportunity to consolidate market position and expand lending operations efficiently
For Paragons Alliance Players:
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Seamless transition with minimal disruption to active players
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All existing players need not take any action to join a new bond (assuming transition of Paragons Alliance and Vault multisig)
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Continued access to cards at no upfront cost, maintaining Paragons’ original mission
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Transfer to a highly engaged ecosystem contributor committed to Parallel’s ongoing growth
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No loss of earning potential or gameplay access
For the Parallel Ecosystem:
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Assets move to ParallelAiRev, a top KOL and ecosystem contributor
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Avoids potential future market disruption from liquidating >210,000 NFTs
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Maintains player access and Bond structure rather than fragmenting collection through market sales
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Preserves community sentiment by protecting active player base
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Ensures continued productive use of assets within the ecosystem
Conclusion
This proposal represents a pragmatic solution that serves the interests of PDT holders while honoring ParagonsDAO’s founding commitment to the Parallel player community. By transferring our full NFT collection to ParallelAiRev for 220,000 USDC, we achieve immediate treasury liquidity and exit a challenging position, while ensuring active Paragons Alliance players continue their gameplay without interruption.
The negotiated price reflects appropriate liquidity discounts given current market conditions and the size of the collection. ParallelAiRev’s commitment to onboard all active players and continue supplying cards through Bond(s) at no upfront cost maintains the accessibility mission that has defined our organization.
This transaction allows ParagonsDAO to pivot toward treasury preservation and yield optimization strategies that better serve PDT holder interests, while positioning our Parallel assets with an ecosystem champion who will maximize their utility and impact.
We recommend Council approval to execute this transition within the proposed timeline.
Copyright Waiver
Copyright and related rights waived via CC0.