[SCP-77] IDEATION Update to the TMDC mandate

Proposal Discussion
1
  1. Hello everyone. I am reposting this proposal for IDEATION.

    During incubation it received 44 looks and 5 votes.

    Kindly have a read and post your comments below. Thank you!

    This proposal is to authorize the Treasury Management and Diversification Committee (TMDC) to:

    advise on the allocation over certain limited assets located within the ShapeShift treasury, amounting to 60M FOX tokens;

  2. to advise on decisions for the treasury to meet meet payroll and operating expenses with stable coins each month; and
  3. to continue to advise on the pools the community owns, and to advise on the allocation of the current positions of the DAO’s DeFI earning FOX and other non-native assets (non-FOX) owned by the DAO.

Summary

The TMDC was established for a trial period in SCP -36 in Nov 2021 and subsequently continued on an indefinite basis by SCP -62 in Feb 2022.

SCP-36 authorized the TMDC to advise over 60M FOX tokens to carry out its mandate. At the time the TMDC was continued at SCP-62, the TMDC had not exhausted the initial allotment of 60M FOX under its control from SCP-36.

The TMDC has now exhausted or will reach exhaustion of the allotment of FOX from SCP-36. Consequently, the TMDC is requesting a renewed, similar allotment of 60M FOX tokens to carry on its mandate.

Also, the TMDC is requesting an authorization from the DAO to make advisments that are limited in scope, to ensure that monthly payroll and operating expenses are met with stable coins each month.

This second request arises from the experience of the TMDC over the last five months where the pathway to meeting those obligations was not always clear.

Third, the TMDC is requesting a specification to continue providing administration of the DAO-owned pools, as well as advisement of allocations of the DAO’s non-native assets in DeFi strategies (mostly staking those assets etc) as needed.

Abstract

If this proposal is passed, the TMDC will be authorized to advise on the allocation of an additional 60M FOX tokens in the Shapeshift treasury. This would bring the total allocation under TMDC advice to 120M FOX. This proposal also authorizes the TMDC to exercise limited control over native and non-native assets in the Shapeshift DAO treasury for the express purpose of meeting DAO payment obligations.

Motivation

This document summarizes the TMDC placements and outcomes since inception. TMDC FOX Allocations - Google Sheets

At the end of March 2022, TMDC made placements in the amount of 55,242,803 FOX and acquired assets valued at approximately $6,520,709 while at the same time taking actions to ensure payroll and operational expenses were met.

With the exhaustion of the allotment of the initial 60M FOX tokens from SCP-36, the TMDC does not have further assets to advise placement on , but still needs to fulfil its mandate, and also still needs to meet the DAO’s future stablecoin obligations.

Authorizing a new allotment of 60M FOX will enable the TMDC to advise on the deployment of the additional tokens to acquire stable coins to meet monthly payments and to build resilience in the DAO treasury.

Benefits

Continue to stack stable coins for treasury

Continue to make stablecoin payments

Improve TMDC’s ability to manage and create new balanced Defi positions

Drawbacks

Opportunity costs of asset placements.

Votes

Yes- authorize (a), (b), and (c ) as outlined in this proposal

Yes- with amendments, see comments below.

No- I do not authorize the issues under proposal.

2

I fully support this proposal! IMO the results of the TMDC thus far, as shown in the linked spreadsheet, speak for themselves. Another allocation would give the Committee the ability to further diversify and manage our treasury in all sorts of important ways.

3

I’d like the TMDC to provide better clarity on the expected amount of emissions, or include a monthly limit to the emissions. As our stables continue to grow, the $FOX price has been declining. Lower $FOX price causes more $FOX to be emitted, and the downward spiral continues.