Thanks @cloudhead for starting the conversation and @lftherios for providing more context here. I am generally supportive of this proposal but I’d like to make sure we’re approaching our DAO’s first venture into treasury diversification with intention. I’ll start with feedback specific to this proposal first:
I agree with this approach. What I’m hearing is that your proposal is to 1) calculate our 36 month runway costs 2) deduct from current USDC balance and 3) divest the rest into solely ETH.
On the first point: It seems like that calculation should be something that’s included in this proposal. This will help contextualize the $10M amount that @cloudhead proposed. Potentially, *in addition to the diversification, we could even propose to move the 36-month runway costs into a multi-sig (who would control this is another question, maybe its just the Council at the start and we transition ownership once we have a better idea of our Org Design. This would already allow us to start transparently managing our DAO budget — something we will have to be increasingly doing as we transition to the DAO.
On the third point: While the value of ETH is obvious, I think we need to include some more context into how this fits into our longer-term treasury management strategy. If it’s the MVP of our investment strategies that’s fine. But I believe it’s important for this proposal to come with a bit more analysis of the risks that come with diversifying into ETH. @cloudhead you say:
I think the draft of this proposal needs to provide some more clarity on why it is. Seems like @lftherios already started providing some helpful points there but in absence of a dedicated team or treasury management strategy, we need to make sure everybody is on the same page with potential risks & rewards.
Finally, management of our DAOs treasury is definitely something we need an informed and well-thought out long-term strategy for. Since this is being treated as the MVP of investment strategies, IMO it should come with some more context into what the plan is for making sure we can develop a longer-term strategy for treasury management. Some open questions for this that could maybe be elaborated upon in the draft of this proposal:
- Who’s responsible for tracking & reporting on the financial performance of the diversification?
- Is there a working group we should form or hire that we should prioritize?
- What expertise can we bring in to ensure we’re thinking about this in the smartest way possible?
We don’t need to figure it all out now, but for me to effectively evaluate this proposal, I feel like I need to see a bit more detail into how this move would fit into the bigger picture.
But all in all, I’m generally supportive. I’m looking forward to seeing the drafted proposal published for discussion 