SCP-93 Request for additional allocation of FOX tokens to the TMDC [Incubation]

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

  • Advise on the allocation of certain limited assets located within the ShapeShift treasury, amounting to a new total of 180M FOX tokens (current TMDC allocation is 120M FOX tokens)

Summary

The current Shapeshift DAO treasury’s available holdings of FOX amount to 125 M FOX (Shapeshift DAO Treasury Zapper Link)

  • Therefore, if this proposal was passed, the FOX within the Shapeshift DAO treasury NOT managed by the TMDC would now amount to ~65M FOX.

Sablier stream income to the Shapeshift DAO Treasury amounts to 162.5M Fox streaming through June 2, 2024 (Meaning total DAO Treasury holdings of FOX not managed by the TMDC now and through June 2, 2024 amount to 287.5M FOX)

  • If this proposal passed, the FOX within the Shapeshift DAO treasury, including the sablier stream income, would decrease from 287.5M FOX to 227.5M FOX.

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 the initial 60M FOX tokens to carry out its mandate. Upon nearing the exhaustion of the initial allotment (60M FOX; SCP-36), SCP-77 requested a renewed, similar allotment of 60M FOX tokens (with the new total of 120M FOX tokens under TMDC allocation) to carry on its mandates.

The TMDC may again exhaust its allotment of FOX from SCP-36 and SCP-77. Consequently, the TMDC is requesting a renewed, similar allotment of 60M FOX tokens to carry on its mandate. This would bring the amount managed by the TMDC to 180M FOX.

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 180M FOX.

Motivation

This document summarizes the TMDC placements and outcomes since inception TMDC FOX Allocations - Google Sheets. As can be seen from the “TMDC FoxAllocations” tab, From the TMDC inception (October 2021) to the middle of July 2022, TMDC made placements currently amounting to 86.76M FOX of the 120M FOX allocated.

Most notably, the placement of FOX into the Olympus bond programs has resulted in the following benefits to the DAO:

  • $10M in USDC has been accrued since October 2021 through our USDC Olympus bonds,
  • $6M USD equivalent in FOX/ETH LP tokens have been accrued
  • $862k worth of WETH was accrued. Olympus bonds accruing in a similar period, all while at the same time taking action to ensure payroll and operational expenses were met in USDC.

With 33M FOX of the 120M FOX tokens remaining and available for TMDC management, from SCP-36 and SCP-77, the TMDC is now asking for additional assets to advise placement on. If it is to be able to continue to fulfill its mandate and accrue stablecoins, a new allotment of FOX is needed.

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 stablecoins for the Shapeshift DAO treasury

  • Continue to make stablecoin payments

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

Drawbacks

  • Opportunity costs of asset placements.

  • Not everyone can vote on the allocation/management of the additional 60M FOX

Votes

Yes- authorize subsequent 60M FOX allocation to the TMDC as outlined in this proposal

Yes- with amendments, see comments below.

No- I do not authorize the allocation as outlined under the proposal.

5 Likes

IMHO the work of the TMDC speaks for itself, as outlined in this proposal and the TMDC spreadsheet. The Committee has enabled the DAO to create a meaningful runway; it’s responsive to the market in proactively managing our Rari debt and various DeFi positions; and is a nexus for regular (twice-a-week), thoughtful discussion around these topics. With its track record in mind, I think another allocation is warranted.

3 Likes

I think this is worthy of support and I would vote yes.

2 Likes

Could you talk to how much of the current allocation is tied up in the loans taken out by the TMDC in the Rari platform?

1 Like