Investment Council Proposal

Investment Council Proposal

Mission

The primary mission of the Investment Council is to oversee and guide our investment strategies, ensuring that each project/investment aligns with our overarching goals of growth, innovation and community benefit. The council will be responsible for making informed decisions that drive the long-term success and sustainability of our DAO.

Usual Tasks

Project Review: Assessing potential projects and investments to determine their viability and strategic fit.

Due Diligence: Conducting thorough due diligence on all proposed investments, including financial, operational, and market analysis.

Recommendation: Making formal recommendations to the community and governance bodies regarding which projects to fund.

Monitoring: Continuously monitoring the performance of funded projects and providing regular updates to the community.

Risk Management: Identifying and mitigating risks associated with investments.

Method to Select Projects/Investments

Submission: Project proposals can be submitted by community members, developers, or external parties.

Initial Screening: The council will perform an initial screening to ensure the proposal meets our basic criteria.

Detailed Evaluation: Proposals that pass the initial screening will undergo a detailed evaluation, including financial projections, strategic alignment, and potential impact.

Community Feedback: Before making a final decision, the council will present the shortlisted projects to the community for feedback and suggestions.

Final Selection: Taking into account community feedback, the council will make the final selection of projects to be funded.

Metrics for Evaluating Projects/Investments

Financial Return: Expected ROI and overall financial health of the project.

Strategic Fit: Alignment with our long-term goals and strategic vision.

Innovation: Level of innovation and potential to disrupt or enhance current market practices.

Community Impact: Potential benefits to the community, including engagement, growth, and value creation.

Risk Assessment: Evaluation of risks and the project’s risk mitigation strategies.

Latitude of Power

The Investment Council will have the authority to:

Recommend Investments: Make formal investment recommendations to the governance body.

Allocate Funds: Allocate a pre-approved budget to selected projects/investments, subject to final approval from the governance body.

Oversight: Provide ongoing oversight and guidance to funded projects. Reporting: Once per month/Once every quarter there will be a report published

Voting Requirements

For significant investment decisions, a Snapshot vote will be required. The quorum and voting thresholds will be determined based on the budget and community guidelines as outlined by Ramz in his earlier post. Specific thresholds will be aligned with the budget size and community involvement requirements. https://discord.com/channels/936227262053904385/1201850294053371914/1220353610001416232

Authority for Small Recurring Investments

The council will have the authority to make decisions on small recurring investments with net DAO Income from dApp staking freely without requiring a Snapshot vote. Investments that exceed the net Income will be presented in detail to the holders and then put to vote (execution only if approval with set quorum)

Note: that current net DAO monthly Income from dApp staking amount for less than 3000$.

Examples include: Monthly NFT Buy-Backs: Allocating $1,000 each month to buy back AD NFTs from the market, allowing for opportunistic purchases at favorable prices.

Low risk investment with recurring yield : Investing up to $1,000 in stablecoins to secure funds for future market opportunities while earning low risk yields.

Number of Members

The council will consist of 3-5 members, ensuring a diverse range of expertise and perspectives. Members will be selected based on their experience in investment, finance, technology, and community engagement.

Financial Compensation of Members

Council members will receive a modest financial compensation for their time and efforts. This compensation will be structured to reflect the responsibilities and time commitment required, ensuring that it is fair and encourages active participation without leading to conflicts of interest. Final terms TBD but will consist on a flat compensation plus a performance fee on the Upside of investments

Conclusion

The establishment of an Investment Council is a strategic move to ensure that our investments are well-planned, executed, and aligned with our community's goals. We believe this council will bring a higher level of professionalism and diligence to our investment process, ultimately driving greater success and sustainability for our DAO.

The final result will be determined by a vote in 10 days, requiring a minimum quorum of 750 with 2/3 majority support.