WIP 10: Conclave Treasury Allocation

Abstract

This proposal seeks to convert 10% of the Conclave’s treasury from USDC to ETH.

Motivation

There are 2 main motivations - operational and financial.

Operational: There have been several proposals (WIP2, 4, 8) that required ETH payments. The allocation will act as a reserve for future proposals that require ETH.

Financial: Some creators would be willing to take ETH for payments within reasonable price windows: e.g. A 5E request at $1500 is still acceptable if ETH falls to $1000.

Rationale

Treasury management is a difficult subject. We want to emphasize this allocation is geared more towards operational expenses with the added possibly of increasing the overall value of the treasury in the future. To that extent, we’ve capped the vote at 10%.

Specifications

A decentralized exchange like Uniswap will be used to convert the USDC to ETH.

Steps to Implement

The community will vote to allocate 10% of the Conclave’s treasury to ETH. If the vote passes, 10% will be converted from USDC.

Timeline

Implemented 1-3 days after the vote is passed.

Overall Cost

If passed, 10% of the Conclave's Treasury will be converted from USDC to ETH.

Additional costs include gas fees to convert USDC to ETH, and any potential loss in value of ETH against USDC.