Ongoing Treasury Diversification

Summary

Immediately withdraw funds from our ‘Founding Pass’ NFT smart contract on an ongoing basis and convert funds into 90% USDC & 10% ETH. This is so we can weather the bear market and reduce risks related to operating costs, the majority of which are in fiat.

Background

ETH is down and this trend is unlikely to change any time soon. Given the market conditions and having consulted with a few trusted parties, we feel that storing most of our funds in USDC gives our DAO the most financial security, since most of our costs are in fiat. We plan on holding 10% in ETH to fund our web3-based operations going forward.

Benefits

• 90% USDC / 10% ETH gives our treasury the most security.
• 90% USDC allows us to pay taxes on this particular drop and make sure we have enough liquidity to start funding projects.
• 10% ETH allows us to remain exposed to the market and transact on the blockchain.

Immediate actions

• Going forward, we will withdraw from the smart contract on an ongoing basis and apply the above conversions.
• The threshold for this is whenever we hit 1ETH in sales. We might adjust this to 2ETH depending on gas fees.

Discussion

• Please chat with Jeremy (jsg#0001) or Bas (basgras#5355) in #dao-chat on Discord to discuss this proposal.

Proposal contributors

• For this proposal we have consulted with Ben Jacobs (Seed Club) and the Triple Ms team.