DIP1: Modernizing DAO Reserves Committee

• The v2 tokenomics proposal defined and created the DAO Reserves, which is funded by 15% of the BTRFLY supply and 15% of protocol revenue from products and the treasury. These funds are used to fund all operational costs to the DAO, including (i) Team Compensation; (ii) Audits / Bug Bounties; (iii) Marketing Materials / Conferences; (iv) Subscriptions / Services
• In order to safeguard the long term interests of the DAO while also ensuring that enough resources are devoted for growth from an operational perspective, the DAO Reserves Committee was established in May 2022 to oversee the use of DAO Reserves for approved uses as outlined in the v2 tokenomics proposal. The committee is also responsible for
  • Rebalancing the DAO Reserve assets (since assets will include many assets received through bribes and fees) and approving other strategies, including dao-to-dao swaps, treasury raises, and other derisking strategies to ensure that the DAO is adequately funding through market volatility. A committee structure is needed for managing these assets so that decisions can be made quickly and without risk of frontrunning;
  • Setting budgets and approving expenses for the DAO.
• Following successive budget proposals approved by DAO Governance (see here, here, here, here and here), due to the nascent nature of product revenue generation, DAO expenses have been funded by the DAO Treasury instead of the DAO Reserves.
  • Consequently, the DAO Reserves have received no protocol revenue share, with the 15% that the DAO Reserves would have received being directed to the rlBTRFLY rewards pool instead
• The Policy Committee was recently created as a modernized version of the Strategic Asset Committee. In a similar vein, this proposal seeks to modernize the structure of the DAO Reserves Committee. The function of the Committee will however remain the same
• We propose that the modernized DAO Reserves Committee consist of 6 members:
  • 4 Redacted development team members:
    • Sami
    • Never
    • Kolten
    • Funky
  • 2 community members, decided through a nomination and ranked choice voting process

Voting

• Modernize the DAO Reserves Committee as described above
• Do nothing