great well we've got a pretty solid turnout for uh for a sunday thanks everyone for for coming we can go ahead and get started here um so typically these down meetings for those of you who are new here will spend most of the time going over uh what's gone on in beanstalk the last week and particularly you know new developments from beanstalk farms i think for for this one we're gonna spend some more time talking about a new proposal that beanstalk farms has with respect to the path forward so we'd love to hand the floor to tapublius to dive into that and uh yeah we'll get started thanks chad so lots of different uh oh my god can you guys see my i got all messed up one sec i think it cut out now try again what about now there we go all right so the sorry about that the the punch line is that over the past couple of days beanstalk farms has continued to iterate on the path forward proposal and the barn rays and there are some potential uh what we view as significant improvements to the barn right structure uh going forward that we'd like to propose so the the main change is that instead of having the barn raise end uh it should run continuously and instead of it ending and there being a haircut based on however much is raised whenever the barn race ends the barn right should just continue until the full 77 million is filled and in practice this has a couple of different side effects on the state of the system upon restart but the main point is that the state of beanstalk under this proposal would not scale down based on the amount of money that is raised prior to the restart and beanstalk would honor all of its previous deposits and debt pots and there's a couple of different main thoughts behind this but the the the main one would be a market environment that is incredibly weak and people are generally questioning whether a non-collateralized stable coin can exist at all the thought of having beanstalk take a haircut and then quickly grow back to the size that it was prior uh would seem to us to be a pretty artificial deleveraging and instead giving people skepticism about non-collateralized stable coins in general we think it's a better bet to have beanstalk just turned back on effectively and to continue to run as it was before perhaps with the same amount of liquidity if the barn race sells out prior to launch perhaps with significantly less liquidity than prior to the attack if the barn race only fills uh some percent but the concept is that the the economics of beanstalk wouldn't change substantively in the sense that whether or not the barn race continues or not the minting the minting schedule wouldn't change whatsoever the only real change i guess there are two changes economically one would be that the pods the amount of outstanding pods would stay the same even if short term the size of beanstalk is scaling down and that means that the outstanding pod rate whether explicit or implicit however you want to think about the pod rate likely go up under this proposal which again this goes back to having beanstalk enter re-enter the market in adverse conditions and then continue to demonstrate its the efficacy of its model but there is some additional risk of increasing the potential pod rate of the system upon restart and that increases the overall risk of the system this one is a lot more flexibility to participants in beanstalk upon restart whether they want to participate in the barn raise assuming that it's there's still size left allocation left uh or whether to participate in the silo or in the field and the the main change under the bar and race proposal on the continuous side is that the thought would be to have the start at 500 for the pre pre launch phase but once the enzyme relaunches the weather immediately cuts down to uh i think the rate was 250 percent 250 percent and then decrease every other season for like 20 days down to 20 percent so pretty quickly down fraud is that the uh benefit of effectively cutting the pod line for participating in the barn raise that the weather that should be required or the interest rate required uh to participate in the barn raise will change substantively over time depending on the state of the system the minting of beans the amount of bar and raised tokens that have been minted that have been paid off etc etc so the concept is there's no re reason for beanstalk to pay such a high interest rate for continued participation in the barn raise but instead have people continue to participate at a much lower rate over time recall has been stopped the peripheral change that responds at the vesting schedule uh even though there's no haircut would now be the minimum of two things uh it used to just be how much of the barn ray's debt issuance had been paid back but now the vesting schedule proposal would be the minimum of how much been paid back and after the bond rates raises default and so there's additional uh limits on the withdrawals until the system has been fully recapitalized now there's lots of other nooks and crannies uh austin has actually done a fabulous job of writing up at length all of the details of this proposal uh to try to make it very because complexity so it could be some for that if it hasn't been done uh immediately for review but the the general thought is to continuous place until beanstalk has been fully recapitalized and uh it is a riskier position in the sense that there's no cut beanstalk is honoring all of its old obligations even at potentially a scaled down size to start but we think that from a longer term a a bigger picture perspective it's probably better to have beanstalk just operate even in pretty adverse exogenous and endogenous market circumstances so don't if any if anything this is this is the time to not cut any corners from a model perspective and really as has been the mindset from day one let the model just operate out in the wild and demonstrate that strong enough incentive structures are all that you need awesome thank you for that publius uh austin maybe do you want to talk briefly about what the next sort of couple of days will look like with respect to this proposal sure yeah so particularly based on feedback from from the last couple snapshots and given the significance of this change we figured it prudent to open a chat discord channel uh dedicated to the discussion of this proposal where we'll drop drop a write up at the end of this call and we'll have let folks discuss the proposal in there for 48 hours or so and then after which we'll propose the snapshot and have the snapshot voting period be for 48 hours as well so that's the plan structurally over the next couple days great um anything else like uh between austin publius that you guys would like to add about this this plan or otherwise we can start moving into some some questions from the chat i mean there's there's a lot of uh details to this and just want to emphasize that it's probably hard to touch all of the details in a short form like this so uh again would encourage everyone to take a look at the written proposal that uh austin has written up but obviously happy to answer questions now yeah of course so what we'll do is we'll go ahead and move to questions now uh if you have questions please drop them in the town hall chat uh or raise your hand and i'll invite you up on stage gonna go ahead and start heading down down the list here so let's start um with a question i guess it looks from a couple of users but specifically uh about sort of the the state of fundraising published if you want to talk about where things are at uh and uh with respect to fundraising otc spoke there's been some since the last time uh the i mean the general point would probably be that the overall market has definitely softened between the macro conditions and the terra collapse but uh that hasn't that hasn't had uh too much of a significant effect on our expectations on fundraising going forward in the sense that uh the vast majority of conversations that have been happening continue to happen and there's progress on uh documents and stuff like that and getting together structures such that lots of people can participate so making progress hard to hard to s like hard to speculate on exactly how much of this capital will turn into a demand for the barn but could do this awesome okay a question from from neural virus uh when will the interfaces for the nfts or barn rays be available so speaking to this uh the the launch date for the barn raise is currently slated for for june 6th so certainly we'll have everything ironed out before then we expect to have a test version out a couple days ahead of that so definitely shoot me a dm about that and we can keep you posted on the timeline there next up from from harry smith about the audit how are we looking on the audit so far anything that we haven't seen or didn't see coming no nothing on the audit front really to report hal bourne gave us a nice status update they've started to audit certain facets and nothing nothing uh nothing crazy from jams what was the genesis of this new proposal was it from an outside investor or internal [Music] um it's a great question was i think it's internal certainly in the sense that it wasn't from an investor but had been chatting with uh manifold and merchant and publius all together and kind of putting our heads together and it was just very obvious why the haircut given the market situation just seemed less and less reasonable the point of a haircut is to have being stuck in a position where it can just start to grow again very quickly but the concept of removing that or concern from a growth perspective aggressive uh from a risk perspective and given the current bear market vibes if you will feel like that's a good that's a good plan people are saying my audio is bad hold on let me let me try to fix my mic one second tell me if this is any better i apologize guys sounds good right now but we'll let you know if it cuts out all right apologies i think i uh i messed up the jack on the microphone so apologies awesome okay uh from brewhouse does the continuous pivoting affect the committed capital i imagine it has to have a real impa impact on ongoing negotiations [Music] the short answer is that the capital that is committed is totally on board with this with the new proposal they are enthused by it and in terms of continuing conversations with capital the main selling point to the capital has been the opportunity to buy uh buy beans at 16 cents on the dollar effectively and that ha that hasn't changed under the new proposal so there's nothing substantive that has changed uh from this perspective and and therefore it hasn't really had any effect the haircut is sort of a substantive change but from a from a presentation perspective it doesn't really change the economics other than what perhaps the short-term optimal strategy might be for a participant [Music] question from alex next can you go over again with a little more clarity how vesting will work assume the amount that someone can use from their old stash will just increase over time as the raised amount increases [Music] yes exactly right so if you had a thousand beans or a thousand lp the pods are not there there's no uh the pods are just normal as they were but the the liquid acids the beans the stock the seeds the lp tokens those will all be this vesting schedule the vesting schedule will be if you had a thousand beans or a thousand lp you will be able to take or claim your beans at some percent the vesting percent let's call it yeah i don't know what it the the lingo is in austin's proposal might be the the ripening percent or something but the concept is that percent if if it's 50 you'll get 500 beans it will be determined by the minimum of two numbers it's the percentage of the barn raise that has been filled so the 77 million effectively and the percentage of the barn raised debt that has been paid back and so if 50 tokens have been issued uh but eight of that the minimum would be 50 does that make so you'd be able to claim 50 does that make sense awesome alex feel free to follow up with that yes it does change over time as both of those uh parameters the percent that's been filled and the percent that's been paid back change which would be you know on a season to season or mint by mint basis moving on to ipo and chill what new vulnerabilities would arise from relaunching beanstalk with low uh eg sub 30 million liquidity well it depends what you mean by a vulnerability the main thing that would change would be the from an economics perspective that the pod rate relative to liquidity or relative to the supply would be different and substantively worse from a risk analysis perspective so the concept is you would have a higher pod rate effectively which may change the required rate of return for the required weather now there was excess demand for lenny to beanstalk prior to the attack uh it's unclear whether there will be demand for soil at 5800 percent after the attack but per usual that's the main thing that's unclear and there's no way to know what the demand for soil will be until beanstalk launches but that's the question awesome uh let's see harry smith asks uh can we add a calculator for us noobs to calculate the haircut if there's a withdrawal uh harry we can definitely look at adding a calculator we've also got for everybody else here some graphics coming out to help show kind of how things move around when when different actions occur awesome i've reached the bottom of the questions i believe here if anybody like to raise their hand and come up on stage to ask a question please feel free otherwise we'll keep let's see um keep going here question from uh the gilfoyle if silo and barn ray's podline are both getting one-third of mints what are the benefits of participating in the barn raise versus putting money in the silo on restart so the that's a fabulous question the barn rays will receive a fixed rate of return which you'll know at the time whereas the silo you don't know and it has a different liquidity profile so in the silo you can always withdraw once you once you participate in the barn raise their you might be able to tokens but there's not going to be a redeemed from being different return pro now furthermore this is another detail that has been mentioned under this new proposal stock and seeds would also investigate the new participants hello in a bonus apples to apples compared to someone that had stock prior to the attack so there is a large benefit to participating in the silo as well and that's perfectly okay from beanstalk's perspective it's preferred in fact so even it takes time for the barn rights to fill because the interest rate for the barn race has gone down significantly uh and participating in the silo is attractive again and lending to beanstalk it's attractive again that's fine it just may take time for the barn race to sell out because uh the 20 return may only be attractive once all of the previous nfts or the vast majority of them have already been paid back if that makes sense so it just may take a little bit of time in that case for being stuck to attract enough demand for the barn race to fill it but that's perfectly okay from beanstalk's perspective it just may take time for the silo members to vest [Music] great uh jams i'll pass your question because i saw your update but just feel free to ask it a different way if you need we'll move on to alex why would there be a haircut if there's a withdrawal i thought the vesting explanation basically said there'd be no haircut you can withdraw what was vested in tomorrow more will vest so that was never the plan uh the plan was always if you claim whatever is vested you forfeit the the rights to the other stuff otherwise there's no point of the vesting schedule then everyone would just invest and sell immediately presumably nasjack asks i assume the ui would also tell us the haircut percentage at any given time definitely we'll also have a ui to help explain how mints are getting distributed and if you hold um the barn raised tokens which we're calling fertilizer you will uh you'll be able to see what tokens are receiving what next question from just a bean how is this plan safer because of the bear market if we raise just fifty percent is it not safe or better to just restart the protocol fifty percent scaled back well it depends what you mean by uh i would make the argument that economically from a perspective but if the goal is to compel the world that a non-collateralized implementation is possible then taking aggressive proton peg maintenance and honoring all of the previous obligations even starting at a smaller scale it's more aggressive from a risk perspective but it's also more aggressive from a proof of concept perspective and given everyone's skepticism on non-collateralized stable coins we think that's that's an opportunity that shouldn't be passed up okay scrolling back up a little bit um for a question from bernoullibean so they ask why uh is the calculation based on the minimum of the percent filled and the percent paid back rather than the product uh and they say if you had 50 raise and 50 of the debt paid off wouldn't you only want to have 25 of the original bdb available to withdraw that is a great question and i i don't have an exam i don't have an answer for you at the moment okay cool we'll circle back on that one thanks for asking uh disco stu to answer your question about what this getting written up uh absolutely it's getting uh we'll push a document that will come out right after this call same goes for the path forward document i see that mentioned a little bit further down from not sure what if we get to a point where entering silo sowing in soil is seen as a better option than buying the barn raised nfts what's the incentive to buy the nfts at 100 weather if the silo is paying 200 apr that's a great question so the concept is if all of the other barn raised tokens have been paid back you can lock in your 100 weather your 20 weather immediately and get one third of bean mints until you're paid back which would be instant assuming that the system is minted so it would be expected to be attractive at some point okay uh left curved scar i saw that you called out uh alex's question asking for us to readdress it if you have a different way to frame the question you'd like us to tackle please drop it in the chat we'll we'll do so i've reached the uh the bottom of chat again so please feel free to raise your hand or keep sending us questions next question from uh from just a bean isn't the goal to get back to our 50 50 minting schedule as fast as we can since the 33 33 33 model has no credit history would this not extend the time frame for beanstalk to get back to its original state [Music] i don't i don't think it's fair to state the goal of getting back to the 50 50 minting schedule as fast as we can as the mindset uh although getting back to the 50 50 minti schedule will be evidence of a full recovery from this this event so there's something to be said for it now the there's an argument to be made that under this new proposal the the time frame for beanstalk to get back to its origin will be significantly longer but it's not necessarily in our opinion the main point is whether the model can work in any scenario and given the general skepticism people say i'm cutting out again hold on i went no microphone so you guys tell me if this is better so now i'm just on my laptop but the there's general skepticism on whether people can whether people can can can create collectively a stable asset and whether or not it's even possible to create a non-collateralized stable asset and the main point is that if people are going to be compelled then the way to compel them is to put beanstalk in the hardest position to succeed possible and that's been our mindset from day one that was one of the main purposes behind the clean launch where we didn't tell anyone about it until after it was live there's no demand launching so putting beanstalk in a difficult position to succeed has always been the mo and taking a haircut or take cutting a corner doesn't necessarily seem like the right approach frankly so it's it's definitely more conservative definitely more conservative but it's also given the goals here of creating new money it might be better to be aggressive from that perspective definitely it's worth acknowledging that it's higher risk for sure from uh from ipo and chill next do you think there is potential for a secondary market where folks can buy the uninvested portion of stock and seeds might help isolate super bullish from those who want to dump and dip in theory yes but that isn't developed and so not not in practice awesome we're gonna go to alex next who's raised their hand alex uh you're up on stage come on up hey guys how's it going excuse me yeah so i figured let me just ask this question again and maybe we can have a conversation about it since a couple of people have kind of pinged uh on my question about investing uh maybe a little dialogue can clear it up for myself and maybe for others in the same time so from what you explained the way i understand the way vesting works is it's a function of time and a percentage of the minimum percent of those two things how much we've raised versus how much uh we pay back the uh the debt on on the uh invest but not time based it's not time-based okay right sorry but then let's say i invested i had prior previously invested let's say i had a thousand being in some silo right let's say today 50 of that has vested right so today i could withdraw 500 bean sell it be happy right now let's say tomorrow one of those percents goes up from 50 to 75 percent what i would expect to happen is 250 more beans show up in my account as claimable that i can withdraw and sell now what i think you're saying is that that's not the case can you clarify this yes that is correct so that would not be the case under the previous plan and under this new plan under both plans the concept is if you had a thousand beans that are 50 vested if you claim them the act of claiming that means that you forfeit your rights to the rest such that there is an incentive for waiting to claim and sell your beans otherwise economically every time anyone vests it would kind of make sense for people to sell their beans so the concept is you can't make it such that the efficient behavior is to every time anyone invests one percent for people to claim and sell you need there to be an instructor for people to wait to vest and wait to claim and wait to sell and leave the system and so the concept is the people that are vesting and leaving early they have to forfeit their rights to the future they're gonna sell beginning on relaunch that's very damaging to the system so you can take your money out and be the first guy out the door upon relaunch but you have to take a significant haircut accordingly so it's not fair that you can be the first guy out the door and then be the next guy out the door and next there's no advantage to you for for waiting then in that case so there needs to be economically an incentive for people to not claim their vested assets and sell every time they vast apologies if that wasn't clear in the previous proposal i thought it was pretty clear but obviously not clear enough it was clear in the previous proposal i just wasn't sure if that had changed with this new dynamic at play but it sounds like it doesn't no and in fact the under this new plan the thought would be if people vest their lp this doesn't apply to beans but if people claim their lp such that they forfeit some of their future lp that decreases the total amount of non-bean stock value that beanstalk needs to raise as part of the barn race so if people claim their their vest partially vested lp tokens and their rights to some future lp that would actually also decrease the total amount of money that bean stock needs to raise as well got it okay thanks for explaining appreciate it yeah appreciate you for for getting some clarity on it awesome thanks for helping up alex uh i'll head back to the uh to the chat for now so next question from harry smith do you think we're trying to over optimize this raise i understand the question but honestly i think the real time optimization has always been part of the ethos of being stock and we're presenting what we view to be the best path continuously and we're all about things in real time so this is uh it's funny right normally before any pip would go live or even the discussion of a potential bib we would have discussed it for weeks and weeks on end and figured out is this the right thing to present or yadda yadda now we're totally naked you know collectively we're all naked because we're all figuring this out in real time and accordingly there is something to be said for we're all out in the open and having this discussion and changing things in real time and that may look bad to an outsider but i think in reality we just need to all collectively make the right decision and when it's all said and done making the right decision and picking the best proposal that's the way to go so there's nothing to be said other than we just need to pick the best course of action and move forward collectively awesome uh another question from from wonton which i think will be really interesting to discuss that in the document that we'll send everybody after this but definitely want to get into it now wonton asks after the protocol restarts would you consider making the nfts cheaper to attract more capital barriers major investors would have would be unchanged as they enter the initial round all right so the implementation of this new structure actually no longer is supported by a by a 721 easily so the thought is now to use erc 1155 which is a semi from the semi-fundable standard and in short that the punchline is that people will be able to participate at the dollar level so a minimum confusion would be for the research sweet a question from rg says publius was cut out earlier but did he mention a percentage of capital with soft commitments uh we were at 20 before the stow update i think that's we're still awfully there's been a lot more progress on getting uh documentation and stuff together such that we can get more than a soft commitment so hoping over the next week or two to get more closer to hard commitments or more hard commitments we should say there are definitely some hard commitments from bernoullibean if people withdraw before fully vesting will the 77 million for the raise be reduced i miss uh the short answer is if people uh burn tokens or beans though only if they burn beans additionally if the price is below a dollar and vesting lp is converted to vesting beans that would also decrease the amount of non-bean value that beanstalk needs to raise so there's multiple instances where the you could also lightly but beanstalk good problems have okay uh next question from from jams the new proposal isn't delaying the start of the restart right we're still on track for june 6th it's just that there's no time limit for the raise i can answer this one james um that's correct so june 6 is when the barn raise will begin uh for the month of june you'll be able to purchase fertilizer ahead of the unpause the unpause is slated for early july after the audits are completed let's see even my mom is texting me she can't hear the broadcast so pretty pretty bad it's a it's a little bit rough apologies let me try to move you think it's a wi-fi issue i think it's wi-fi so if you want to get a little closer to the router for a second it'd be it'd be awful my usual spot guys sorry sorry austin didn't mean to did me to dox the the fertilizer here nah that's fine i forgive you excited to share this proposal with everyone uh the the whole of beanstalk farms has been working hard on this but huge shout out to austin for really crushing it the last few days it's very well put together and this is a complicated thing to to uh explain and put to work so hope you all can appreciate appreciate that once it's out to answer one question while we're waiting for uh for publicist get back poopley just let us know when you're when you're settled again there's a question earlier about building a dashboard of some kind for this so a couple ways i think we can tackle that alex first of all from a ui standpoint the plan right now is to incorporate uh all of the ui for you know purchasing uh uh fertilizer with the barn raise into the the core app so it'll be right there alongside everything else we've also got a lot of really exciting updates to that ui with a lot of you know much requested uh updates uh from the last couple of months pre-owned or pre-exploit that we'll be incorporating at that time so get excited about the new uh the new beanstalk ui i guess is all i can say um and then secondarily we haven't discussed this explicitly yet but i'm sure there will be you know a dune dashboard and other analytics focus dashboards for this for this purpose so stay tuned on that front all right publius how are we looking good i think there's one question on whether the race will be audited the the hope to have all of this new done before the 12 bits 100 of it will be audited by trail of bits don't know if this these extra details will be able to be audited by hal born prior to the relaunch but uh they'll they'll you know we're grinding grinding to make sure that this is all done prior to trail of bits audits starting in a couple days awesome harry smith's uh asks can we launch on july 4th so we've all been playing around with that idea and working towards that but honestly don't know if we can get there so uh nothing would make us happier than to launch on july 4th though but don't know if that's realistic next up from from bernoulli bean if the raised target is reduced from an early withdrawal then percent of the rays filled will be updated so others positions will be more vested is that correct yes but that that this is where the minimum of multiple things comes in so it would increase if the minimum with a percentage of the partner is failed not the percent paid back but in theory sure that's also only specific to lp is that right correct scooby has a question for for austin uh scooby asks austin you seemed against this idea five days ago anything change in your mind uh i don't know what to say man there's a lot of good feedback from the community and uh lots of good ideas shared internally and you'll get to see the artifact produced from that at the end of this call also scooby i guess i'm not quite sure which part you're referring to i don't know if you're referring to the minimum participation size or the haircuts but uh but let me know bernoullibean uh saw that you bumped your question about the um taking the product instead of the minimum i think the answer is basically uh we don't have a specific answer on that right now so we'll we'll leave that one for for chat discussion later all right both options are feasible whether you want to do the minimum or the product both are feasible so just need to think through that a little bit more but definitely a good shout out sweet i've uh reached the end of the questions again so we'd love to have more folks up on stage please raise your hand if you got any questions i think we've got some new folks in the audience too so i know somebody's got a question out there people are just jonesing to read this proposal so i think we uh maybe we just call it dropped oh several people are typing them so maybe yeah let's just see what uh this typing is all about nobody wants to to hop on on the chat evidently that's right last call for questions uh in chat harry smith asks is marge still an advisor yes jams asks are nfts still being made for the new proposal um don't know these will be done as 1155s and the thought is to hopefully still do something like 721 for people that participate in the barn rates maybe before it launches or something but that would be optional to mint and separate don't and and frankly not not a priority at the moment so i don't know yeah i can speak to that a little bit and it'll also be in this proposal doc we share but uh on the artwork front so since we're like like publius said since we're using 1155s they don't quite work uh how we had originally intended for unique artwork so what we'll do instead is mint uh optional separate erc 721s so standard nfts with that distinct artwork um and there'll be some some new parameters around that i believe right now uh what we're discussing in the snapshot is minimum participation for getting an nft being 1000 usdc and then they're limited to the first 10 000 transactions um with fertilizer so yeah we'll have all of this in the proposal gilfoyle asks is there potential to use this barn ray system in the future to raise money for other things internally or externally to beanstalk hell yeah this is the cool thing about this like there's so many different proofs of concept that are going to be made the concept of having ready to skip the pod pop line for certain instances this is the protocol it's all going to be really cool data to see in practice and none of us know if this is going to work right like this is continues to be an economic experiment as much as as much as a governance experiment and other things next question from warthog so during the barn raise can just buy in any dollar increment and have multiple transactions i'm not sure we have an answer to this one discos do but disco stu asks how much is a white label barn rays worth the tara i don't think they can afford it unfortunately cool well i think that looks like all we've got in terms of questions i know everybody's uh rearing to go read this proposal so uh what we'll do is we'll we'll wrap it up here we'll drop the proposal in discord the the idea is we'll open up a new channel specifically for discussing this proposal i believe it's going to be called bfp72 so keep your eye out that we'll tag everybody and please keep the this conversation centered in that channel so we can make sure we get to everything but would love any and all feedback on this proposal we'll send it over as a google doc link and a pdf and yeah just really excited to move forward expect um you know at this time we're kind of looking towards pushing towards a snapshot sometime this week so let's uh let's get some conversation going and thanks everyone for for your questions and and for taking the time to join us publius any uh last thoughts that you'd like to throw in here i mean i i just would emphasize that this is riskier this is economically higher risk and long-term higher reward but it feels like a significant improvement over the previous proposal in in our opinion so we we it's just important that everyone recognizes this is a riskier approach but it's it's potentially also an opportunity to prove the model that that should under no circumstances be passed up assuming we all have faith in the model and at the end of the day i think that's what we're all doing here great well with that uh we will wrap up here thanks everyone again for joining we'll send that document soon and uh we'll see you in