by 0x1d6dbc9ab48b6c6d743d176be7ddaf0e3589ed46 (Pedro)
The DAO treasury should, in my opinion, start diversifying its assets so that the community can protect against market risk related to the $MANA token. Current treasury portfolio can be reviewed here: Transparency
As can be seen, pretty much 100% of the treasury’s assets are either on $MANA or $DAI (which is used mostly to paying out grants).
This is why I propose selling around 20% of the treasury’s $MANA position replacing it with $ETH in a pre-announced progressive timeframe to avoid generate innecessary volatility in the $MANA token and generating a better token distribution. This can be done in the span of 12 months, on a monthly or quarterly basis.
Hey everyone, I’m Nicole Maffeo the cofounder of SIZE Markets which is an on-chain OTC protocol. I like the transparency dashboard! Agree with diversifying the DAO’s treasury beyond $MANA especially as 2023 gets further underway and market volatility persists. In line with what most treasuries are doing right now.
Dependent on whether the proposal passes, I think that using SIZE could make a lot of sense. To address a few of the points/concerns the DAO made above:
The option to add custom vesting parameters helps align buyer incentives.
OTC alleviates concerns around market volatility, slippage, price impact etc.
Scheduling recurring auctions is easy and alleviates overhead (monthly or quarterly are popular).
Auctions can be whitelisted or public which generates a better token distribution.
Lindsey from Hedgey. This came our way and wanted to jump in and offer to help if the proposal goes through.
As reference, we’ve built smart contracts that Gitcoin and Gnosis have used for diversifications in the past. As an example, Gitcoin was able to use for their $6m treasury diversification that included a lockup and voting with locked tokens.
Have been a fan of Decentraland since 2018 and would love to be helpful whether it’s sharing what we’ve seen on these diversifications or helping with some of our tools.
I heard great things about Hedgey. We plan to use your treasury solution over at BanklessDAO as well for time-locking BANK and performing OTC swaps with our partners to diversify our treasury.
OK. This turned into an advertisement. I agree on diversification and have said it before. I think not only ETH but MATIc as well and perhaps BTc and/or something on a different blockchain like SOL, ATOM, ADA or XLM. If Im not mistaken, one way DAOs make some of their funds is by providing liquidity. Could even possibly build a pool for Decentraland and have residents provide the liquidity. Maybe that earns you VP or just MANA or something.