Bitcoin Investment Proposal (Wrapped)

Overview

The main purpose of this proposal is to use our idle Treasury Funds to seize this potentially unprecedented opportunity going into the next Bull Run and the Bitcoin Halving cycle which is scheduled for April 24th, 2024. As most of you are aware at this point, this upcoming Bull Run and specific long term investments like Bitcoin will be providing life-changing opportunities for many people. Bitcoin at the end of the day is the father of Crypto and will lead the run if there is any pump in Crypto based on historical charts and cycles. Seizing this opportunity is crucial as we may not see anything like this upcoming Bull Run in the near future. To summarize the above overview, this is a potentially once in a lifetime opportunity that our DAO is fortunate enough to be able to seize. To not act on this opportunity is essentially thinking that Crypto doesn’t pump again and create new ATHs and I have a pretty strong feeling that anybody still left in NFTs has a fairly positive outlook on Crypto in the long term.

Goals

Much like the Staking Ethereum proposal, the main goal of this BTC investment proposal is to use the funds sitting in our treasury to generate revenue for both the DAO and for the benefit of individual holders (Will explain how in the “Execution Plan” Section). I will emphasize this again, to be bullish on Crypto but not on Bitcoin is just silly. This is a rare opportunity that could tremendously benefit our DAO in the long run.

FrankenDAO Benefits

1.) The main benefit of this proposal is the growth of the DAO Treasury through a relatively low risk but high upside potential investment like Bitcoin. We are on the verge of the next bull run, have bullish catalysts playing out in the macro environment for BTC specifically, AND have the next BTC halving Cycle coming up at the beginning of 2024. This is a rare opportunity that our DAO could benefit from tremendously if executed correctly. 2.) Much like the Staking Ethereum proposal, this ensures that we are entering positions to yield profitable returns back to the DAO Treasury and to individual holders. Though this proposal is technically riskier than staking eth due to the overall volatility of Crypto assets, I do think it is still low risk when considering upside potential, upcoming and existing catalysts, etc. 3.) Finally, individual holders will benefit from this proposal as well. Details are still to be determined on how these profits generated after returning the initial investment is returned to the DAO treasury but this is definitely a large part of the proposal. See the Execution Plan to fully understand how the breakdown of profits generated will play out.

Timeline

This proposal can go into effect immediately after executed assuming BTC is still sub $40k.

Execution plan

1.) First off, the management of these funds will be through a Gnosis Safe Wallet (the same as the staking eth proposal) and will be managed by Chapta, Cess, GhostofHarvard, and CC_Riders. Due to the large investment being made here, execution of any transactions on this gnosis safe will require ¾ majority vote from the representatives. 2.) Second, the execution of this plan relies on us converting the set amount of ETH to Wrapped Bitcoin. From there we will act as if the Wrapped Bitcoin is Bitcoin. 3.) The Breakdown of how we will go about this investment is as follows: 3A.) Purchase 2.5 WBTC on Gnosis WalletConnect while BTC is under $40k (Approx. 42 Eth worth while Eth is at $1850 and BTC is at $32,250) 3B.) Hold 2.5 WBTC until the value of 1 WBTC is equal to $80k where we will sell 1 of the WBTC and send those initial investment funds back into the DAO. 3C.) Following the sale of that 1WBTC, we will continue to hold the other 1.5 WBTC until we hit the price target of $100k per BTC. This is where we will sell another 0.5 WBTC and use 60% of those profits to reinvest back into the DAO and then the other 40% to provide value back to individual holders whether that be through the DRS rewards, NFT giveaways, etc. (Details on how we will use these profits to give back to holders still TBD) 4C.) The final WBTC will be held for long term purposes. I propose that we hold at least the 1 WBTC going into the next bull run and through the halving cycle in April. This being said, the minimum lockup period for the final WBTC should be until December 2024.

Budget and fund utilization

-Total Amount of Eth in On-chain Treasury after Staking Ethereum Proposal= 222 Eth ($400,000+) -Total investment amount= 2.5 WBTC (42 Eth or approximately $78,000) -Leftover Eth in On-chain treasury after BTC Proposal= Approximately 180 Eth (Approx. $333,000)

1.) Using the 42 Eth sent to Gnosis Safe (0xb7cCB0Ee5C06562282048F95e27C73b148Dcb6d2), purchase/convert total amount of funds to Wrapped Bitcoin. 2.) Following the purchase of the 2.5 Wrapped Bitcoin with the approximately 42 Eth, our first targeted exit price is $80k to sell 1 WBTC and get back our initial investment for the DAO treasury. 3.) Following the sale at $80k per 1 BTC/WBTC, we will look to sell another .5 WBTC when the value is equal to $100k which we will then use those profits generated to reinvest 60% back into the DAO (Approx. $60k) and 40% back to holders (Approx. $40k) 4.) Finally, the leftover 1 WBTC will be held for a lockup period of minimum 1 year (Until July 2024). I originally had this set to December 2024 so it was targeted at holding the BTC going into/through the next bull run but I shortened the time frame in case there is a parabolic move that we don’t want to miss out on when it comes to selling (Do still recommend holding this last WBTC long term)

What areas of the community does this touch?

FrankenDAO, General

Proposed transactions

Transaction #1

FrankenDAO sends 42 $ETH to 0xb7cCB0Ee5C06562282048F95e27C73b148Dcb6d2