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

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    • Withdrawn 25 million FOX so far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 for FOX- ETH Liquidity (1 million FOX + 5 million* FOX (*pending))

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:

  • Yes- I support the establishment of the Treasury Management and Diversification Committee and elect the following members to the committee: Danielle, Amicus.eth / Rotorless, albitrage / Al, profMcC, seven7hwave/ Kent

  • No- I do not support this proposal in its current form

0 voters

5 Likes

In strong support of this moving forward!

5 Likes

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.

5 Likes

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.

2 Likes

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.

2 Likes