Summary

To ensure the long-term sustainability and growth of the DappRadar DAO, it is important that we diversify our treasury. By thoughtfully diversifying, we can create the liquidity necessary to fund the near-term operations of the DAO, stabilize our financial standing and pave the way for reaching our goal of becoming the world’s community-owned Dapp Store. This proposal is drafted in the spirit of transparency, laying out our intentions clearly to our community.

Proposal

Allocate up to 500,000,000 RADAR (5% of supply) from the DAO’s treasury for diversification through OTC sales to strategic partners and the implementation of an algorithmic treasury management program.

Motivation

As DappRadar moves forward on its path toward decentralization, an increasing amount of the platform’s activities and associated expenses will move to the DAO. Diversification of the treasury will provide the DAO with greater resilience against market volatility and enable a more flexible approach to funding operations and initiatives.

Engaging with strategic partners via OTC sales minimizes market disruptions and ensures that the DAO tokens are in the hands of stakeholders who share the same long-term vision. These partners can provide more than just capital; they can offer expertise, connections, and opportunities for collaboration. By implementing an algorithmic treasury management program that conducts native token sales based on volume, we will enhance liquidity management, reduce price impact, and diversify risk.

Abstract

As we shift towards the DAO model at DappRadar, there will be both DAO-native revenues and costs. Our workstream model means that we will steadily be operating directly from the DAO rather than our previous centralized entity. It is important that the DAO is resourced to deal with the increased operational costs. The DAO has allocated 24.75% of the Treasury to fund initiatives such as platform development, operational costs and partnerships.

Building upon the transparency standards being executed by other DAOs (IDLE DAO, Badger DAO, Lido DAO), we are looking for the community to buy in on its treasury diversification and strategic partnership strategy.

The DAO will seek to achieve mutually favorable terms with the strategic partners in various verticals including CEXs, chains, wallets and web3-native VCs. With DappRadar’s prowess in the distribution of user, data and insights, we will ensure alignment with the future short and long-term goals of the DAO.

Utilization of the Raised Funds

The funds raised from these sales will be directed towards the following key areas:

Fund DAO Operations:

As we shift towards our Workstream operational model, these funds will ensure that the day-to-day operations of the DAO continue smoothly, supporting projects, proposals, and necessary administrative tasks. This will also include the future operational costs that the DAO will pay to utilize the infrastructure and intellectual property built and maintained by the DappRadar Core team.

Accelerate Decentralization:

Invest in initiatives and infrastructure that move us closer to a fully decentralized model, furthering trust and participation from our community.

Web3 Native Product Development:

Boost the research and development of Web3 native and RADAR integrated products that strengthen the position of DappRadar DAO as a destination for Web3 discovery and accessible data and insights to aid web3 investments. This includes reimbursing the DappRadar Core team and contractors for the previous DAO and RADAR initiatives and products that have been built since inception.

Talent Acquisition:

Attract, retain, and reward critical talent, ensuring that our DAO has the human resources necessary to drive our mission forward.

Scale Marketing Operations:

Expand our reach, recognition, and reputation by scaling up marketing endeavors, driving increased usage of DappRadar products, and community growth.

Conclusion

This proposal seeks to fortify DappRadar DAO’s financial position, promote our growth, and solidify our commitment to becoming the world’s, community-owned, dapp store. We believe that with the collective approval and support of our community, we can achieve a bright decentralized future together.

We invite the community to discuss, debate, and provide feedback on this proposal, ensuring that our next steps resonate with our shared vision.

Benefits

Operational resilience:

Diversifying the treasury will offer a buffer against market volatility, ensuring steady funding for the DAO’s operations without being overly reliant on the value of a single asset.

Strategic partnerships:

Engaging with strategic partners can bring in not just funds, but also expertise, connections, and collaboration opportunities that can further the DAO’s mission.

Enhanced reputation:

By following transparency standards executed by other esteemed DAOs, DappRadar will gain increased trust and credibility in the community and will attract even more partners and RADAR holders long term.

Future growth:

The allocated funds will catalyze Web3 product development, talent acquisition, and marketing operations, positioning DappRadar DAO for robust future growth.

Drawbacks

Increased token circulation:

Distributing RADAR tokens to partners may lead to market concerns regarding an uptick in token circulation over the next 2-3 years.

Governance complexity:

Incorporating major partners into the fold can introduce complexities in DAO governance. Their potential influence could make consensus-building intricate, but it aligns with our mission of decentralization and offers opportunities for growth.

Bear market challenges:

Treasury management during less favorable market conditions can be strenuous. It’s essential to ensure the DAO’s operational continuity and preparedness for subsequent market upswings.