WBTC Conversion

Overview

This proposal addresses the treasury management of the FrankenPunks NFT project’s operational wallet, specifically the strategic conversion of WBTC holdings into USDC to extend the project runway and cover ongoing operational costs.

The FrankenPunks treasury has benefitted from significant appreciation in BTC, and this proposal aims to responsibly secure a portion of those gains while maintaining flexibility and disciplined exposure to future upside. The conversion will be executed in price-based tranches, allowing the DAO to act decisively as market conditions are met.

This proposal will override any previously approved WBTC treasury proposals upon passing. Current Holdings 1.5 WBTC held in the FrankenPunks operations wallet

Goals

Convert a portion of the DAO’s WBTC gains into USDC stable reserves Extend the operational runway of the FrankenPunks project Ensure sufficient funding for: Core operations Infrastructure and tooling Development and future initiatives Maintain a disciplined, price-driven exit strategy that avoids reactive decision-making Reduce downside risk while securing profits already achieved

FrankenDAO Benefits

Secures realized gains from BTC appreciation Extends the project runway in a volatile market environment. Derisks the DAO’s treasury exposure while maintaining upside through staged execution Enables the team to operate with financial confidence and flexibility Demonstrates prudent, transparent treasury management to the community

Timeline

Immediate

Execution plan

The DAO will sell WBTC in tranches, triggered once BTC price targets are met and DAO funding requirements arise.

This staggered approach allows FrankenPunks to: Lock in gains progressively Reduce volatility risk Avoid selling the full position at a single price point Maintain transparency and predictability in treasury actions

Once converted, all proceeds will be held in USDC as stable reserves for operational and strategic use.

Rough Target Prices & Tranches ( Not prescribed to sell at these prices - But a guide for the team)

Sell 0.5 WBTC if BTC reaches $89,000 Sell 0.5 WBTC if BTC reaches $91,000 Sell 0.5 WBTC if BTC reaches $93,000 Each tranche will be executed independently upon the respective price target being met.

Budget and fund utilization

The USDC generated from these sales will be allocated toward: Ongoing operational expenses Project maintenance and tooling Development and feature expansion Ensuring long-term sustainability of the FrankenPunks ecosystem

This conversion is critical to ensuring the project can continue operating smoothly without reliance on unfavorable market conditions or emergency funding decisions.

What areas of the community does this touch?

General, FrankenDAO