FWB Treasury Diversification

Summary

Exchange 7% of the FWB Pro supply to strategic partners in exchange for $700k USD.

All tokens will be transferred directly to and from the community treasury.

Abstract

Friends with Benefits is looking to expand its team of core contributors heading into Season Two.

We propose exchanging 7% of FWB Pro, or ~21.4% of the community treasury, in exchange for a mix of ETH and USDC from strategic partners including leading crypto investors and builders.

FWB Pro is slotted at a spot price of $10/token with one year vesting schedule.

Tokens are subject to a six month cliff, followed by six month vesting. This means half of the allocation unlocks at six months from the passing of this proposal, while the remaining half unlocks monthly for the remaining six months when the cliff is reached.

The community treasury will be used to empower contributors in a more formal capacity and be used to build out deeper community tooling.

Motivation

The community treasury - fwbdao.eth - currently holds ~35% of the FWB supply. While this treasury is great on paper, it’s important that contributors be paid in tokens other than FWB.

Diversifying the treasury with exogenous assets such as ETH and USDC allows Friends with Benefits to be more flexible in the partners it engages — without having to worry about exchanging FWB on the open market.

This exchange also welcomes the most respected web3 funds into FWB’s orbit, a strong signal in alignment with the FWB community and social tokens as a whole.

All funds have agreed to the amounts and terms described in this proposal, should the community agree to move forward with the exchange.

Specification

Allow the staff to facilitate exchanges with each of the following funds directly from the community treasury.

• Divergence
• Variant
• Collab+Currency
• Nascent
• GPs of Polychain
• The LAO
• MetaCartel Ventures
• Galaxy Interactive

Many of these investors are already active members of the FWB community including @cjliu49, @jessewldn, @delitzer, @pridesai and @galaxyRTK. This exchange looks to bring additional investors into the fold and carve out a pocket for their expertise to be shared with the FWB community.

Each of the above groups is contributing between $50k-$100k.

The staff will create a Gnosis Safe multisig to act as an escrow for each allocation. FWB Pro will be transferred to the escrow wallets to enforce vesting, and all partners will send their allocation directly to the treasury - fwbdao.eth - should the proposal pass.

All distributions will come directly from the community treasury.

This proposal will run for 72 hours. All discussions around the proposal will be held in the #governance channel in the FWB Discord.

Benefits

• Seed working capital for community contributions
• Align FWB Pro with the strongest partners in the web3 space
• Be a leader in DAO treasury management for social communities

Drawbacks

• Exchange a sizable portion of the community treasury (21.4%)
• Shorter vesting schedule (1 year) to account for nascent nature of social tokens

Vote

Yes - Distribute 7% for $700k No - Do not exchange tokens