Gitcoin $3 Million Treasury Diversification

Authors: @schlabach & @HelloShreyas from Llama, @Kyle from Gitcoin

Summary

We propose moving $3 million of GTC (~1.2m GTC at time of writing) to a multisig wallet to execute the previously proposed treasury diversification. This will be exchanged for USDC via an agency desk in order to support critical DAO workstream funding needs. Any GTC that remains after the strategic diversification will be returned to the treasury. Given current market conditions and Gitcoin's operating needs, we think this is a prudent action to take.

State of GitcoinDAO’s Treasury

Today, GitcoinDAO’s treasury holds 23m GTC (roughly $57.1m). GitcoinDAO’s Treasury Vester holds another 26m GTC which will be distributed to the DAO over time.

The vast majority of the DAO’s treasury is held in GTC, with very little in stablecoins. At the end of May, the DAO held $280k in DAI and USDC.

Rationale for Exchange

Individual DAO workstreams have been funded in GTC and are now facing an asset-liability mismatch. Many contributors have wages denominated in USD terms, yet workstreams only have GTC with which to pay said contributors. With the market downturn, workstreams now face an increased risk of not being able to meet these obligations. We wanted to quickly ensure that workstreams can meet their obligations.

We’re engaging with a reputable agency desk to execute this transaction. The agency desk will utilize a broad range of liquidity sources to execute the transaction with approximately 10 bps of slippage or less. The agency desk will charge 20 bps as a fee and will likely be able to execute the transaction within 3 days. This will ensure that each workstream has the stables needed to meet near term expenses.

We’ve proposed working with a trusted agency desk on the transaction as an alternative to requiring workstreams to sell GTC on the open market, which would be inefficient, costly, and operationally riskier.

Other Notes

Any GTC that remains after these two actions will be sent back to the treasury.

Execution

We will create the on-chain proposal to transfer GTC from the treasury to a 5/6 multisig. Signers on the multisig will be the the following Gitcoin Stewards:

• Kyle Weiss
• Annika Lewis
• Shreyas Hariharan
• Kris
• Simona
• James / Fire Eyes

A Snapshot proposal will be posted to Gitcoin’s Snapshot for a community vote. Please let us know if you have any questions or feedback!