[SCP-36] Proposal for Treasury Management and Diversification Committee [Official Ideation Thread]

Proposal Discussion
1

Summary:

The Treasury Management and Diversification committee’s (TMDC) priority is to take a holistic approach to DAO treasury management, and must act toward the long-term success of FOX token and the ShapeShift DAO. The committee will be a dedicated team of members carefully watching, acting and reporting on a weekly basis.

The committee members selected by poll by the community are:

Danielle, Amicus.eth / Rotorless, albitrage / Al, profMcC, seven7hwave/ Kent

Motivation:

To be able to act quickly, manage and execute on treasury management and diversification strategies to allow for a more active, holistic and long-term approach to treasury management.

Specifications:

  • Establish a Treasury Management and Diversification committee under the Tokenomics Workstream.
  • Committee would consist of 5 qualified community members. The number of members should be odd to break ties when voting.
  • The committee would be governed by a simple majority rule. The committee requires 4 members for quorum when voting.
  • The committee meetings will be open to the ShapeShift DAO community but only the 5 members will vote.
  • This proposal would be an initial test of the committee
  • Trial basis for 3 months. November 16th, 2021 - February 16, 2022
  • There is no compensation for these roles for the trial basis
  • A subsequent proposal is required for the committee to continue on
  • During the trial basis the committee will not have any direct access to the DAO treasury, there will be a check and balance in place with the current trusted signers of the DAO.
  • If a majority of the committee vote to approve the X, then this committee will work with the trusted signers of the DAO to execute the trade, project etc.
  • Governance of the committee:

    The ShapeShift DAO can vote to replace the committee or remove their power at any time.

  • The DAO can vote to replace any single member on the committee at any time.
  • If a member of the committee quits their duties before the end of the trial period, a new committee member must be elected by community vote.

State of the Treasury (11/2/21)

  • At the time of writing this proposal the DAO has the following treasury makeup

    Restricted Treasury via Sablier Stream

  • 242 million FOX was initially granted
  • 221,000 FOX per day is available to claim
  • Withdrawn 25 million FOX so far
  • 242,000,000 - 24,000,000 = 218,000,000 FOX Restricted Treasury via Sablier Stream
  • 600,000 FOX available to claim (11/2/21)

329,518,327 FOX

  • ← Available DAO Treasury
  • ~325 million from airdrop
  • ~25 million from sablier stream

“Expenses” ~19 million FOX so far: Treasury disbursements

  • Fairdrop Contract

Passed Proposals:

Olympus bonds

Approved by governance but not executed yet

Honeyswap

  • -ShapeShift DAO and 1Hive DAO will execute a community swap of approximately $100,000 in equivalence of FOX and HNY (1Hive’s native token).

Draft proposals

Thorchain Token Swap

  • ← $2 million FOX = $1 mil RUNE and $1 mil FOX
  • Rari
  • Index Co-Op - Opportunity - Buy and hold FOX for set amount of time with a 5% discount

Requirements of the Treasury Management and Diversification committee:

  • The Treasury Management and Diversification committee’s priority is to take a holistic approach to DAO treasury management, and must act toward the long-term success of FOX token and the ShapeShift DAO.
  • The committee will be a dedicated team of members carefully watching, acting and reporting on a weekly basis.
  • 40,000,000 FOX is available to the committee to implore strategies as they see fit. Examples: collateralization/ debt, liquidity provision, yield farming, and other defi strategies.
  • The committee will administer the pools the community owns. (adding assets, ltv ratios, admin fees, recommending liquidity incentives etc)
  • If the committee should want to sell FOX: The committees tactics should have limited price impact on the FOX token, no one tactic can drop the price by more than 2%

The committee has a current roadmap/plan:

  • Participate in all active discussions currently happening in the forum and make sure on day 1 we can be effective stewards of the Treasury.
  • Research and vote on Rari
  • Follow through on the Index Co-Op - Opportunity - Buy and hold FOX for set amount of time with a 5% discount
  • Assist the Support Workstream in finding a way to execute on their Fox’ed up fund
  • Things this committee should consider and that have support:
  • Obtain enough Stablecoins for 1 year of runway
  • Diversify the treasury
  • To be able to support the work streams in salary, promotional giveaways and pay for subscriptions/services. (ETH, Stables, etc)
  • Design and implement a strategy that manages assets and debts to achieve 2+ years runway

Benefits:

To be able to act quickly, manage and execute on treasury management and diversification strategies to allow for a more active, holistic and long-term approach to treasury management.

Drawbacks:

There are risks in trusting in 5 committee members of 40,000,000 FOX. We have tried to combat them by having a check and balance with the signers of the DAO being separate. We also have limited the risk to only 6% of the overall treasury. As well as a trial basis for these 5 committee members.

Vote:

2

In strong support of this moving forward!

3

Also want to indicate strong support for this. I already have a proposal in the wings that will be PERFECT to test out this new committee.

4

One thing that I would like to amend as I put up the full proposal today is the amount of FOX this committee would be able to manage. As it stands there are over over $20 million + in opportunities that this committee could participate in just in the first week. As I have discussed this in the governance calls, and just in the many discussions with Willy and others. I think this is the one amendment I will make.

I plan to post this today to boardroom/snapshot and change from 40 million FOX to 60 million FOX. Then if this committee does want any additional FOX, they can request it with an additional proposal.

5

After presenting this info in Discord and in the Weekly Ops meeting. I feel confident in moving this forward with that change to a vote. Stay tuned.