PSP-BPΔ1: ParaSwap DAO budget for 2022

KEY WORDS

Treasury, Budget, Strategies

REDACTOR

@dydymoon.eth

SIMPLE SUMMARY

The goals of this proposal are to establish a budget for the $PSP holdings of ParaSwap DAO unvested over a year. To do this, it seeks to lower the current staking rewards, rebalance the risk vs LPs, and establish upper spending limits for other DAO spending categories. This proposal will be split into 8 sub-proposals to validate every line of the budget.

CONTEXT

Over the first year, ParaSwap DAO will receive 13.5% of the total supply, for a total of 270M $PSP. This proposal will propose a potential repartition of the ecosystem reserve unlocked.

To make the calculations easier and start claiming the 2nd year allocation in 2023, the 270M will be used from November 2021 to December 31st 2022, so 13.5 months.

The staking reward budget represents 50% of this funds at the current rate, which is why this text will propose a reduction to help the DAO expenses to be more sustainable, and reduce the selling pressure on $PSP price in the long term.

This proposal aims to set upper spending limits for different budget categories, and does not mean that all of the allocated $PSP will be immediately spent on the proposed sub-sections.

The only BP’s that will be immediately applied will be BP1-1 and 1-2, as they are affecting already existing DAO programmes. All other ones will hinge on further viability discussion and votes to ensure further deployment.

GOALS

This proposal will be split into 8 sub-proposals that will be submitted with specific proposals on each subject :

• PSP-BPΔ1-1. Reduce the staking rewards budget (33M $PSP, 13.88% budget)
• PSP-BPΔ1-2. Increase the liquidity mining DAO budget (42.58M $PSP, 17.91% budget)
• PSP-BPΔ1-3. Curve war & $CVX budget (45M $PSP, 18.93% budget)
• PSP-BPΔ1-4. Gas refund program budget (30.8M $PSP, 12.95% budget)
• PSP-BPΔ1-5. Protocol owned liquidity (POL) budget (11M $PSP, 4.63% budget)
• PSP-BPΔ1-6. Grant-Micro Grant budget (5.5M $PSP, 2.31% budget)
• PSP-BPΔ1-7. Marketing & Partnership budget (4.95M $PSP, 2.08% budget)
• PSP-BPΔ1-8. Contributors budget (5.5M $PSP, 2.31% budget)

This repartition keeps a significant part of the treasury unallocated (59.42M, 24.99% budget) that could be used to farm while including all the points above.

Read the full proposal here: https://gov.paraswap.network/t/psp-bp-1-paraswap-dao-budget-for-2022/614/18

VOTING OPTIONS

• Accept the potential max spending of 56.78M PSP for February, March and April 2022
• Refuse the potential max spending ok 56.78M PSP for February, March and April 2022
• Abstain