1% Strategic Diversification of DCL DAO Holdings

by 0xd6e62a97a55537cd04847bb73e22208bd20106aa (DCLCurations)

Abstract: Decentraland is the oldest, and one of the most prominent metaverse platforms in the world. With a 10yr, 220M MANA vesting contract, the DAO is able to support a multi-million dollar grants program and multiple DAO teams including: DAO Committee, DAO Governance Squad, Grant Support Squad, Revocations Committee, Facilitations Committee, Moderators, and more.

Yet, with a current treasury value of $22,308,022 US Dollar value (98% held in $MANA), there is no finance committee and very little interest in financial management.

This is intended to persuade the Decentraland Community that diversification is a necessity in order to manage risk, explore growth opportunities, and achieve long-term sustainability that does not rely on the 10yr vesting contract.

DAO Financial Guiding Principles:

1. Maintain Grant Fund sustainability quarter-over-quarter in perpetuity
2. Invest, where possible, in tangential platforms or cryptocurrencies
3. Have negligible impacts to the $MANA market price

Short-term Goals: 1-3months

1. Convince the Decentraland DAO that financial management and planning is a necessity
2. Achieve DAO consensus on a 1% diversification plan ($223,080)
3. Establish a framework for investing

Long-term Goals: 2-5yrs

1. Become the World’s greatest DAO
2. Achieve positive cashflow

Current State: The current position of the DAO is to do nothing with the $MANA they hold; however, within the Decentraland DAO 2 topics of discussion are top of mind:

1. The downtrend of $MANA which decreases the ability for the DAO to operate and fund growth

2. Competing platforms (Hyperfy, Mona, Spatial, etc.) I argue that 1% ($223,080) of our current treasury can be used as a starting point to 1. Help mitigate risks of external factors bringing down the value of $MANA and 2. Build relationships and integrations with current “competitors”

Example Scenario: Hyperfy has attracted a lot of attention, especially from the DCL community, for its VRMs and ease to build and host events. 1674/9500 hyperfy LAND has been purchased at a price of .09 ETH (~$168USD).

For $159,201USD, the Decentraland DAO could take a 10% position in hyperfy land. This can be used by the DCL Community to develop cross-platform integrations and can be leveraged to insert the DCL DAO into conversations with other metaverse platforms about forming collaborations moving forward.

The Additional ~45k USD can be put onto liquidity platforms such as Uniswap to provide more liquidity, earn yield, and provide some market stabilization for individuals looking to invest in our platform.

• Pursue Further
• Don't do this
• Invalid question/options

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