Signaling Vote

This is a signaling vote to establish a baseline for our core investment researchers. This vote won't result in any direct actions in the treasury now or in the future. Its sole purpose is to provide a data point for influencing the goals of our treasury strategies.

This signal is relevant only to this point in time, and future signaling votes will

What is a Treasury Risk Profile?

The goal of this vote is to establish a ratio between different asset classes that we try to shoot for with our treasury investment decisions. By establishing this criteria, it gives us constraints to direct investment choices to achieve our desired results.

For example, our CVX and GLP positions are 25% and 35% of our portfolio at this time. This is a large concentration in 2 investments, so we should derisk. But where to put them? It's an open ended question.

But if we have a target ratio of asset classes to shoot for, it might tell us to put 10k into alts (or into something stable that can be invested in alts later), and 20k into bluechips, and 5k into stables. Or it might tell us completely different amounts, but either way we will know how to rebalance those investments once we agree it is time.

What isn't a Treasury Risk Profile?

A Treasury Risk Profile is not an imperative to make the treasury match the profile. A rebalance vote will always be necessary to make major changes to the treasury, and a new Risk Profile vote will be taken at that time.

Individual investment proposals do not have to meet Treasury Risk Profile requirements. Our altcoin allocation might be well-over the target amount, and we still choose to invest in another new one. Or our stables might be way too high, but we still keep them held as stables until we're ready to execute a swap into a different asset class.

So our treasury balance will stay very fluid through the vacillations of the market. This is a one-time 'temperature check' before we pursue a major treasury rebalance.

How do I signal my target goals?

The easiest way is to imagine a 100-point scale. Enter the amount you want the percentage to be for each asset class. As long as it all adds up to 100, then your vote will accurately reflect the ratio you intended. So if you want something to be 40%, enter 40.

What are the asset classes?

• Moonshots

  • High Risk, High Reward.
  • Projects like Cantos or DFK.
  • Individual investment might be very small, with hopes of selling off peaks to extract value.
  • High Research Cost to capitalize properly.
  • Management is time-sensitive to sell the peaks and buy the dips.

• Alt Coins

  • Medium to High Risk, Medium to High Reward.
  • Projects like Atom or Chainlink.
  • We may spot sell some peaks, but also will farm or stake it where appropriate. Larger positions than Moonshots, but still small individual investments in projects.
  • Moderate Research Cost. Alpha is harder to find, but usually existing research is available to get started.
  • Management is more forgiving, as profits are not always entirely extractive.

• Blue Chips

  • Medium Risk, Medium Reward.
  • These projects track market trends, or more accurately create them. Eth, BTC, and bigger projects like Curve/CVX.
  • These are either stores of value or sound money that can be held to stabilize the treasury, or invested to farm yield, or utilized as currency to purchase other asset classes.
  • Lower research cost as they are already established products.
  • Management is mostly understanding market movements.

• Stables

  • Medium Risk, Low Reward.
  • These are USDC, FRAX, DAI, and other stables that have little upside other than some mild yield farming opportunities.
  • These are held as currency to purchase other assets and as a stabilizing force against market downturns. Often we will take profits into stables to hold as dry powder, so our balance will fluctuate often. The Risk Profile allocation is to determine a minimum amount we should try to maintain.
  • Research is more technical in confirming the stability of the token. If major options are utilized, market usage lends to security.

• Hedges

  • Medium Risk, Low Reward.
  • Projects like FPI (stable pegged to inflation) or PAXG (tokenized gold).
  • These are a hedge against a poor economic future. They aren't essential in an up-only market, but for a treasury trying to have a stable future a certain amount should be considered.
  • Research is similar to stables in that it is highly technical. Understanding the domain of the hedge is crucial.