Objective

This proposal aims to optimize the DAO’s SPECTRA holdings by determining the best allocation between locking SPECTRA into veSPECTRA for voting and selling a portion of it for profit.

With the recent addition of a gauge for Super jEUR, leveraging Spectra’s incentives will help drive adoption for jEUR on Base and support future integrations, such as adding the USDC vault to Spectra to improve protocol liquidity.

This proposal will allow the DAO to decide the best allocation strategy for its 893K SPECTRA tokens, currently worth $66K (initially acquired for $10K).

Background

Jarvis DAO holds 893,000 SPECTRA, which has appreciated significantly in value:

• Initial investment: $10K
• Current value: $66K

With the launch of the Super jEUR gauge, the DAO can use veSPECTRA voting power to direct emissions toward jEUR liquidity pools, increasing demand for jEUR on Base.

Additionally, in the future, the DAO could add its USDC vault (which provides liquidity for jFIAT minting) to Spectra, further enhancing the protocol’s liquidity.

The DAO now has an opportunity to:

1. Lock SPECTRA into veSPECTRA to vote for its gauge and maximize emissions toward Super jEUR.
2. Sell a portion of SPECTRA to realize profits or reallocate funds to other strategic initiatives.

Proposal Details

The community will vote on how to allocate the 893K SPECTRA in the DAO treasury. The possible options are:

• Lock 100% of SPECTRA into veSPECTRA and sell 0%
• Lock 80% and sell 20%
• Lock 50% and sell 50%
• Lock 20% and sell 80%
• Lock 0% and sell 100%

By locking SPECTRA, the DAO secures veSPECTRA voting power, which can be used to vote for the Super jEUR gauge and direct emissions toward jEUR pools on Base, improving liquidity and utility for jEUR.

By selling SPECTRA, the DAO can realize profits and reallocate funds toward other priorities, such as:

• Bribes or incentives to attract more liquidity.
• Reinvesting in veSPECTRA later when price conditions are better.
• Diversifying the treasury into stablecoins or other strategic assets.

This vote will determine the best balance between securing voting power and capturing profits.

If the governance decides to sell SPECTRA token, another proposal will be needed to know when (at what price) and how to sell them.

Rationale

1. Locking SPECTRA Supports jEUR Growth:

• More veSPECTRA = More emissions to Super jEUR gauge = More jEUR demand on Base.
• Strengthens the DAO’s influence within Spectra’s ecosystem.

2. Selling SPECTRA Secures Profits and Treasury Flexibility:

• The token has appreciated 6.6x in value.
• Selling a portion now allows the DAO to realize gains and reinvest elsewhere.

Flexibility for Future Expansions:

• A portion of funds could be set aside for when we add the USDC vault to Spectra.

This decision should balance short-term treasury gains with long-term protocol growth through Spectra’s incentives.

Stakeholders

• jEUR Holders: Benefit from increased demand and liquidity for jEUR on Base.
• Liquidity Providers (LPs): More emissions mean better incentives, attracting liquidity.
• DAO Treasury: Gains either through increased voting power (locked SPECTRA) or profit-taking (sold SPECTRA).
• Spectra Protocol: Gains through stronger engagement and TVL growth from jEUR and future vault integrations.

Metrics for Success

• veSPECTRA voting power secured after allocation decision.
• Increase in jEUR liquidity on Base via Spectra emissions.
• Treasury value impact based on whether a portion is sold and reinvested.
• Potential reinvestment in bribes or incentives to attract more jEUR liquidity.

Budget

No additional budget required. This proposal determines how to allocate existing SPECTRA holdings.

Conclusion

This proposal allows the DAO to decide the best strategy for leveraging its 893K SPECTRA holdings. The community will vote on how much to lock into veSPECTRA for voting and how much to sell to secure profits.

Voting Options:

• Lock 100%, Sell 0% – Fully commit to voting power and emissions for jEUR.
• Lock 80%, Sell 20% – Prioritize voting power while realizing some profits.
• Lock 50%, Sell 50% – Balance between Spectra voting power and treasury diversification.
• Lock 20%, Sell 80% – Capture most of the profits, keep some voting power.
• Lock 0%, Sell 100% – Fully exit SPECTRA, reallocate funds elsewhere.

This decision will determine how the DAO supports jEUR on Spectra, expands its liquidity strategy, and manages its treasury growth.