Add a Chromie Squiggle to the DAO Collection

Proposal:

Set up a buying committee with approval to spend up to 15 ETH to acquire a Chromie Squiggle. This would be about 2/3 of our liquid ETH in the treasury.

Summary:

The DAO currently has zero exposure to arguably the best product-market fit for Ethereum to date, digital art (and even more so, gen art). The digital art market is illiquid and can be difficult to navigate, which is why I believe our first purchase should be a Chromie Squiggle. It is the most liquid collection in the digital art space, aesthetically unique and have a simple thesis for any new entrant to understand. Squiggles were minted on November 27, 2020 (known as "Day 0") and are "Project 0" (genesis project) of Art Blocks, the generative art powerhouse in the space. The project itself was created by Snowfro, the CEO and Founder of AB.

It is by far the largest collection size (10,000), which can be viewed as a negative in comparison to some alternatives in this price range - Meridians (10ETH floor) and Gazers (20ETH floor) both have a total supply of 1,000. However, the potential network effects of squiggles and their ability to penetrate culture across a multitude of channels likely outweighs this concern long-term.

The floor is currently about 14ETH. The proposal requests up to 15ETH to ensure we are able to withstand a short term move upwards on the floor price or pick up a value play slightly above floor (similar to our Cryptopunk purchase). However, the committee will also be looking for an opportunity to acquire a squiggle below floor via private sale.

Bear Case:

Digital Art, and more specifically Gen Art, does not gain material inflows from new collectors joining the space and the large collection size works against Squiggles. In this scenario, a significant retreat in floor price will occur. I think the case for this collection trending to absolute zero is low and it will likely remain relatively liquid, so we should be able to find an exit if desired (albeit at a loss to current pricing).

The Gen Art space has enjoyed strong momentum during this downturn, so there is some risk on additional retracing of the floor price in the short term. We could absolutely see a retrace back down to the 9-10ETH range; however, we have absorbed much worse short term price fluctuation than we will likely see with Squiggles in this market.