Holistic Improvement of Decentraland DAO Finances

by 0xc53e74d0ad1601ac02e2e1bc71823819512f9192 (r3genavantgarde)

Should the problem/opportunity outlined be refined and taken to the next level?

Problem Statement

The Decentraland Community faces challenges that are threatening the long-term financial sustainability of the DAO. These include negative P&L month by month, lack of income stream diversity, sub-optimal financial reporting and planning, ineffective grants program, continuous sell pressure on MANA, and lack of robust treasury management. While these challenges are common across many DAO and can be resolved with the right corrective actions, the financial future of the DAO may be at risk without immediate intervention.

Proposed Solution

Hire service providers with the right skillset, comprising experts from Avantgarde (https://avantgarde.finance) and r3gen finance (https://r3gen.finance) to address the identified financial challenges. These contributors will focus on financial reporting, budgeting & planning and treasury management. r3gen will provide Big-4 accounting expertise, while Avantgarde will leverage its treasury management capabilities. The implementation of the treasury management will be conducted on Enzyme (https://enzyme.finance), a DeFi protocol that is best-in-class for control, transparency and trustless delegation.

Target Audience/Customer Base

The primary audience for this proposal is the Decentraland DAO community, key stakeholders, and delegates. r3gen and Avantgarde aim to gather feedback and build consensus among stakeholders to ensure alignment with the DAO's long-term objectives.

Why is this relevant now?

The current challenges facing the Decentraland DAO necessitate swift action. With monthly expenses surpassing income, lack of income stream diversity, and inefficiencies in financial reporting and planning, the DAO's financial future is in jeopardy. Establishing a service agreement now will enhance financial transparency, optimise treasury funds, and support the sustainability and growth of the Decentraland metaverse. By addressing these challenges now, the DAO can secure its financial future and enhance its long term impact, prosperity, and success.

For the full fledged proposal, please read more here: https://docs.google.com/document/d/1pzg6LgqswNBZTbIkvgXUWBQC2c_DZfS-GtS50sa0Mqo/edit?usp=sharing

This proposal is summarized due to technical limitations. To view it complete and vote on it, visit the DCL DAO Governance dApp