GM 8.1 - Treasury Core Team Appointment

Summary:

To establish a team dedicated to the health and growth of our treasury and to establish Defi-Beats as the leaders of this team (Treasurer of gmDAO).

At the end of the day, the treasury belongs to the DAO and any changes will have to come to a vote. Possible future votes may include:

• Setting up a conservative portfolio
• Subsequent changes to this portfolio
• Establishing a cadence for rebalancing
• Investing in other DAOs
• Any other investments the DAO may want to make with its treasury

The Treasurer of gmDAO will need to be more of a communicator and consensus builder than a money savant. At the moment our sizable treasury is laying dormant. Conservative strategies can ensure that our funds grow in between NFT drops. However, our money will continue to lay dormant unless someone takes responsibility for the tasks laid above.

Goals:

The long term goal is to one day have all of gmDAOs monthly expenses be paid for by the conservative yield on our growing treasury. The short term goal is to garner yield without putting the funds in any significant risk (i.e, not to lose any money in any circumstance)

Risks:

Investment risks on a small portion of our treasury

Spending treasury on salaries but not seeing any treasury growth

How have you already contributed to the DAO?

De-fi Beats was an early contributor on the Governance team and helped establish and organize the process we are following at the moment.

How do you want to contribute to the DAO going forward?

The Treasury Working Group will be responsible for:

• Attending weekly meetings with core DAO members
• Designing and implementing a low risk portfolio
• Automating as much as possible to reduce human error
• Monitoring the portfolio weekly and making adjustments accordingly
• Rebalancing once a month
• Monthly DAO wide reporting on results
• Assisting the DAO in any treasury centered tasks such as budgeting, projections, and cost cutting recommendations
• Discussing and debating new proposals that may offer better opportunities
• Eventually, once the treasury grows to a more substantial size, this teams wants to lead the DAO into a phase where funds can be granted to DAO members to start their own projects within the DAO. We also see a world where gmDAO can fund outside ventures and subsequently own a piece of another DAO.

A rough rough sketch of what our treasury can look like once this passes

This is a peek of what we may propose once we know that the DAO is interested in putting the treasury to work - our portfolio will need to be voted on by the DAO before anything can happen.

Treasury Breakdown

Payout recipient:

*Treasury Lead (*De-Fi Beats)

Contributors (Yopez, kadigan.eth, other contributors welcome)

Payout amount:

From the description laid out above and below, a fair compensation for this role has been set to $2,000 a month. We would also like to set aside $2,000 a month to compensate contributors on a task by task basis, any funds not used out of the allotted $2,000 will remain in the treasury and will not roll over to the next month.

We are also proposing a 3 month trial period. After which an extension will need to be put to a vote.

We propose allocating 5% of profits to all members of the treasury team in order to incentivize creativity and diligence.

• A snapshot of the treasury will be taken once the below portfolio is enacted
• The below portfolio will not go into effect until after the Plasticity sale
• After the three month trial period we will take a second snapshot and calculating ROI in native currencies in order to negate the effects of wild swings.
  • Example: Profits of USDC will be calculated in USD, profits of ETH will be calculated in ETH not USD. So any price movement of ETH as an asset will not effect ROI
• Income (sales, secondary royalties) and outflows (monthly expenses) will be accounted for when calculating ROI (i.e., income from royalties does not factor into ROI)
• An ROI report will be made available to the DAO at least 7 days before any contributors are paid their incentive bonus

Miscellaneous**:**

Contributor backgrounds

• De-fi Beats (Defi-Beats.eth): I am the co-founder of HZQ Consulting we don’t really do titles but my role fits closest to COO. Helped grow the company from 0 to $1M / year in just under 4 years. The parts of my role that fit closest to being gmDAO’s Treasurer involve creating and staying within budget, making strategic investments in technologies and individuals, building consensus with clients, and making decisions under constant uncertainty (especially during COVID). At the moment I am full time Web3 working in DAOs and growing my own personal treasury through DeFi.
• kadigan.eth: Long time crypto enthusiast. Bitcoin since 2013, DeFi since ETHLend. Full-time crypto for a few years now after founding a smaller centralized crypto business with closer to 20 employees today. Day job as a CEO includes managing company and customer funds, including risk-assessment for protocol security and price swings. Writes Solidity in free time. In conclusion; technical background, experienced in treasury management, team work and DeFi, little experience from working in a DAO.