b. Sourcing deal flow and partnering with various projects in the ecosystem with potential bright futures helps empower the ShapeShift DAO to buidl the best possible decentralized interface for the world.
c. The ShapeShift DAO can help foster the wider growth of the decentralized crypto ecosystem by making sure to support projects that otherwise might not get the chance of existence. Furthermore, the ShapeShift DAO community can also offer invaluable support via a group of connected angels that can co-invest alongside the vFOX treasury.
d. By putting ShapeShift DAO treasury assets to work in this sub-DAO format, the treasury receives vFOX which it can use as a treasury asset managed by TMDC and larger DAO treasury governance.
Specification - The ShapeShift DAO will spawn a sub-DAO (vFOX) and commit to funding the sub-DAO treasury up to $1 million worth of USDC and/or FOX. The vFOX governance token will be issued back to the ShapeShift DAO treasury, holding 90% of the supply of vFOX with 10% held by the vFOX treasury for future incentives and allocation at the discretion of FOX holders (who will hold all vFOX governance rights at that point through the DAO’s allocation). The funds do not need to be released to the sub-DAO treasury all at once, instead only as needed based on token positions and deal flow of new opportunities. The goal of the sub-DAO will be to deploy/allocate those funds over the next 6-12 months in order to prove its thesis out, including always holding a long position on FOX in regards to any FOX allocated to it.
The first act of vFOX governance should be electing a committee/management team whose purpose should be managing sourcing and closing of dealflow, as well as sub-DAO treasury defi positions on behalf of the vFOX treasury and thus managing the mutli-sig of the sub-DAO - it is proposed as part of this proposal (to accelerate vFOX hitting the ground running) that this first team be a committee of 3 (appointed for a term of 6 months to start) including JonisJon, WillyFox, and Kent who will be paid both with long term streaming contracts of vFOX (2% of total vFOX each streamed over 3 years or until revoked by vFOX treasury) from the incentive pool of the vFOX treasury as well as a yearly (committee shared) performance fee of 20% based on treasury gains year to year (USD denominated). The committee will be responsible for the full life cycle of the treasury, including sourcing deals, establishing and supporting partnerships with vFOX backed DAO’s/protocols on behalf of the ShapeShift DAO, maintenance and strategy of the vFOX treasury positions, communicating to the larger vFOX holder community (primarily the ShapeShift DAO community of FOX holders itself), and multi-sig execution for those various tasks. The committee will communicate on a regular basis on its activities as well as engage regularly with the community to keep the larger FOX community involved.
There should be little limitation on the vFOX treasury strategies that are deployed by the committee except sticking generally to supporting the larger decentralized ecosystem, forming partnerships that benefit the ShapeShift DAO, and generally deploying strategies that are effectively long FOX. In addition to allocating treasury towards new and emerging decentralized projects, it should also include the ability to do things like (responsibly) going leverage long fox and engaging in experimental high risk/high return defi strategies.
If the vFOX treasury proves itself effective over the first deployment of $1 million across the ecosystem then it may make sense for the ShapeShift DAO to increase its funding in a second phase (but of course based on results and in relation to DAO revenues and treasury position at the time).
Benefits - The benefits of this proposal will be the creation of a more nimble sub-DAO treasury which can be used to effectively put the DAO’s funds to work on supporting the wider decentralized ecosystem, forming partnerships that benefit and support the ShapeShift DAO’s product(s), and participating in potential upside of the ecosystem. The DAO will also gain a new treasury asset in the vFOX governance token which can be allocated and used by the DAO as needed.