[AIP-12] Cancel ongoing treasury diversification after success of AIP-3

Authors: SmallCapScience

Summary

I, alongside Tritium from BadgerDAO, proposed AIP-3 in mid-July to increase AURA float and liquidity while also building a sustainable runway for the DAO’s operations. The proposal was a success, diversifying the treasury into nearly 1,000,000 USDC while also bootstrapping deeper AURA/ETH liquidity, which has increased by over 50% since the proposal. Now that liquidity conditions improved and the DAO treasury has sufficient runway, Aura should explore cancelling the rest of the diversification.

Background

AIP-3 allocated 350,000 AURA from the treasury, left over from the airdrop and liquidity allocations, to Cowswap, to be distributed into USDC. This proposal had two separate premises:

1. Increase AURA float due to large amount of initial AURA locking relative to liquid supply, allowing interested individuals and DAOs from scaling into AURA to use it for liquidity or voting.
2. Diversify treasury as AURA’s bootstrapping took place during a large market correction, the treasury accumulated less reserve assets than expected, leaving the DAO will little operational runway.

As it stands, there is currently a remaining ~90,000 AURA from the initial 350,000 AURA that has yet to be diversified.

Due to market conditions, the value of ETH in the treasury has increased substantially to ~$600,000. And 851,000 USDC has also been deposited in the treasury as the AURA has been diversified. Runway needs for the DAO and for the Aura Foundation [via AIP-5] are likely satisfied for the time being.

Terms

• Cancel pending Aura DAO treasury limit orders diversifying AURA into USDC on CowSwap

Tritium, who proposed AIP-3 with me, has already shared his support for this proposal.

Voting

This vote will be a single-choice vote. You may vote “For” or “Against” this proposal, or choose to abstain from the vote. By voting “For” this proposal, you are voting in favor of the terms stated above.