I thought this topic would be better discussed in long-form in the Forum, rather than short-form in the Discord chat rooms. This is a discussion, and there is no objective ‘right’ or ‘wrong’. Instead, the goal is always to achieve balance.
About two years ago, I founded PSF DAO. We are a very small DOA of JavaScript developers. Because we’re so small, we are much more ‘price sensitive’ to how the PSF token is used. This discussion thread is my attempt to pass on some valuable lessons that we’ve learned.
Some of the workstream proposals pitch their budget in FOX tokens, and some of them pitch their budget in US dollars. There is a trade-off here that every FOX holder needs to consider before voting on a proposal.
TL;DR: Budgets in tokens present downside risk. Budgets in US dollars present upside risk.
I’ll try to keep this explanation short. I can expand the reasoning in additional posts:
From the perspective of FOX token holders, who want to see the price of FOX token increase, they should prefer proposals that are budgeted in tokens. In the event of a bear market, dollar-denominated budgets can put significant downward pressure on a token.
At the same time, budgets based on tokens (and not dollars) are naturally attractive to workers who want earn the token and hold it. It attracts workers who do not want to simply cash out of the token into fiat or other cryptos.
There is no way to avoid some budgets denominated in dollars. In particular, business-critical infrastructure like Dev Ops is closely coupled to the fiat world, and it needs to continue operation regardless of a bear or bull market.
To summarize, for the sake of the health of the token and thus of the longevity of the DAO, token-denominated budgets should be preferred.
Feel free to push back on this idea. I’m happy to expand on this idea, based on my experience, and learn from others experience too.