LIP-6 Pre-Council Investments

Title: LIP-6 Pre-Council Investments Author: KakashiSama, Kieran Warwick, and most_dope Date Created: 19th April 2022

This vote is to approve “pre-council” investments as detailed below:

ABSTRACT This document proposes a change to grant temporary investment permissions to the Ethlizard DAO, specifically before the time that a 5 member fund management council is formally elected - subsequently written and referred to as “pre-council” investments for the remainder of the proposal. This would allow for the Ethlizard DAO to initiate these “pre-council” investments with the DAO treasury funds immediately upon LIP-6 approval.

Relevant Information: The Ethlizard DAO investment fund council has still yet to be elected and installed. Elections are scheduled for May 2022.

The Ethlizard DAO treasury vault currently holds 341+ ETH. Up to 80% of this may be used for potential investments according to the DAO protocol.

Ethlizard staking contracts are already in development. These staking contracts relate to the investment reward distribution; Their current absence does not directly limit or withhold any ability for the DAO treasury to be used for investments immediately. Staking / RevDis solutions to specifically address these “pre-council” investments shall be resolved at a later date.

Post-council elections: In accordance with LIP-4, from the time that the fund management council election and installment occurs, all investment fund management responsibilities will be handled by the elected 5 member council. This will remain unchanged and is not affected by LIP-6.

MAIN CHANGES

The Ethlizard DAO will be granted permissions and autonomy to make “pre-council” investments using DAO treasury funds for up to 3 unique investments. These 3 combined investments shall not exceed a maximum total limit of 85ETH (24.87% of DAO’s current treasury - around $255k). These “pre-council” investments could be made by the DAO in cases where: A. It is a seed/pre-seed investment deal passed along by an advisor. B. Investment decisions would be guided by advisor input and thorough analysis to be made towards the end goal of financial benefit for the Ethlizard DAO treasury. C. The Ethlizard DAO investment fund council has still yet to be elected and installed. D. The Ethlizard team would handle the administration on behalf of the DAO to execute the steps to complete any of these 3 “pre-council” investments. For these “pre-council” investments, the 5% fee that is normally reserved for the council, will be instead sent to the Ethlizard DAO treasury to be used for reinvestment. RATIONALE The council elections are still some weeks away, yet there are some promising investment opportunities that are available immediately. This LIP-6 proposes limited DAO permissions that would allow “pre-council” investments to occur immediately, thus providing earlier access to earning opportunities for the DAO.