Default Distribution Method

When Hydra receives native assets with liquid trading markets from its portfolio DAOs for distribution to members, we propose that the native assets be sent to members as soon as practicable as a default distribution method.

In 2023, we commissioned a working group to evaluate how best to exit investments. The group considered how to reduce decisional overhead, honor disparate member preferences and avoid incurring dry tax liabilities before arriving at a recommendation for this distribution method.

This method has the benefit of reduced administrative costs as it avoids the need to discuss and vote on how to handle each received asset. Further, it would allow bullish members to hold the distributed token and less bullish members to sell some or all of it, possibly to satisfy any relevant tax burdens. Finally, because it is only a default method, members are free to advocate for and the DAO is able to decide on a different distribution method in a particular case.

A passing yes vote on this proposal will ratify the working group's recommendation for a default distribution method.