[IDEATION] Merger in the AEZ using Convertible Bonds

Update: We have renamed the Title of this topic to step aside from the specific case of the Stride application. Instead we want this topic to become a potential reference in the future for merger & acquisition cases within the AEZ. CONTEXT: Building upon our previous discussion outlined in this post ( Convert entire STRD supply to ATOM - #112 by Govmos ), we have decided to transition our focus towards a more practical approach. Rather than solely debating the possibility and merits of a merger, we are now delving into the steps needed to facilitate it. The objective is to emphasize the inherent complexity and duration of such a process, necessitating a thorough grasp of all intricacies and potential financial structures involved. ANALYSIS: After reviewing early community feedback, we identified a significant concern on the Hub’s side regarding the creation of new ATOMs. To counter this concern, we propose an initial analysis demonstrating that the merger can be achieved without minting any new ATOMs. Our suggestion involves adopting a convertible bond framework for the merger. While these terms may evoke traditional finance connotations, we believe that a financial matter…

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It is also worth noting that this system is adaptable to almost any protocol merger with the hub. It isn’t just working with Stride. And we think this is the most elegant way to generate ATOM utility. Making it a prime financial collateral though ATOM backed convertible bonds. A smooth way to integrate consumer chains that want to merge entirely with hub’s token.

Your proposal appears comprehensive, taking into account the concerns of the community and addressing them through a well-thought-out financial mechanism. The emphasis on maintaining the existing revenue-sharing agreement and incorporating flexibility through market dynamics adds depth to the proposal. It will be essential to continue engaging with the community and stakeholders to gather feedback and refine the details of the proposed convertible bond system. Additionally, legal and regulatory considerations should be taken into account during the implementation process.