by 0x247e0896706bb09245549e476257a0a1129db418 (LordLike)
I think about how Decentraland can get profit from crypto rates. In the near time - 2024 BTC halving will happen resulting possible bull run from which Decentraland could benefit. For it to happen DAO can decide to convert 1/4 of the balance to BTC and ETH proportionally.
Definitely a fun thought to have. But even making calculated decisions like this would be a gamble. Let’s keep our DAO funds safe 
Thank you for your proposal and this is an interesting idea, but I agree with DOCTORdripp, this can be very risky, and I prefer to look at DAO funds in a more conservative way.
I like that you’re thinking of ways to bring value to the DAO and increase our overall portfolio. Reallocating funds in this manner could be profitable, but it could also lead to a significant loss that would be detrimental to our Decentraland ecosystem. When would you suggest a person invest and extract their funds to best take advantage of the halving? Do you have prior experience investing in the crypto markets before and after a halving? What is your financial background? Due to the risk involved I’ll be voting no at this time.
This is actually an extremely valid question, and there’s already a grant working on a potential proposal as to how this could be done.
You can find their last video update here:
The foundation has already diversified its assets, and rightly so. @DOCTORdripp I totally agree that we should keep our DAO Funds Safe; and part of safeguarding those funds is hedging and protecting ourselves against systematic risk. Currently, we are overexposed to MANA, and lack any form of diversification, which is far riskier in the long-term with regards to how significantly systematic risk can end up impacting us.
I’m voting ‘Invalid Question’, not because the question is invalid, but rather, because this discussion is already being had.
1/4th of our balance is likely far too heavy, however, I extremely encourage everyone to take this question very seriously moving forward, as it could both potentially protect us, and empower us, in the long-term.
I wasn’t aware of this, so thank you for bringing the information to light @Seanny.
My initial thought is that stablecoins reduce the gambling factor. Funds that I’ve received from grant proposals were sent in either USDC or DAI, which IMO is much safer than investing funds that were not meant to be invested.
I would be open to the thought of investing funds if it were elected by the community, but initially it sounds irresponsible to me.
Totally.
Currently, the DAO’s vesting contract is released in MANA which is not a stablecoin. In fact, the DAO’s treasury has fluctuated significantly over the last 12 months, due to fluctuations in the price of MANA.
Moreover, the vast majority of revenue that the DAO gets on a weekly/monthly basis is also in MANA, due to how our ecosystem is set up.
Keep in mind that a stablecoin is not necessarily a full-proof method for safeguarding the longevity of the DAO (and actively hedging against risk). The perfect example is UST in this regard.
Ultimately, diversification is a good method for protecting ourselves as a community. The more diverse our treasury is, the more we can protect ourselves against systematic risk.
In the long-term, the DAO can also consider owning traditional investments and assets, however, this can only be done after we’re legally recognized and registered as an actual entity.
Happy to keep this conversation going @DOCTORdripp, and thanks for the great points!
Thank you for taking the time to respond! These are great points to consider. Looking forward to learning more.
Agree with @Seanny. I have a suggestion. Diversify into 4 different assets equally , namely USD stablecoin, Mana, ETH and BTC for the treasury.
Payout for grants can also be the same. A payout can be made to the respective party in the form of any of said assets.
A simplified example would be like this. X gets 1k usd grant approved. X can choose the form of payment. X chooses to be paid in USD. The treasury then converts $250 worth of MANA, ETH and BTC into USD and including another $250 in stablecoins, payment be made.
This ensures that the DAO doesn’t take on concentration risk in the event of extreme MANA price volatility, without needing price speculation. The more stable the DAO is, the more stable the underlying cryptocurrency should also be.
@Seanny This is really interesting. Never thought of DCL DAO funds as a resource that could be invested and grown. Especially as we are in it for the long haul. The proposal from Alastor is well presented too. Straight crypto is not the way to go with such a huge chunk, way too risky but if a potion of it could be invested in less riskier more traditional funds and grown over time for the DAO, diversifying makes a lot of sense.
Should 1/4 of DAO balance converted to Eth and Btc before 2024 Bitcoin halving ?
This proposal is now in status: FINISHED.
Voting Results:
Should 1/4 of DAO balance converted to Eth and Btc before 2024 Bitcoin halving ?
This proposal is now in status: FINISHED.
Voting Results:
Should 1/4 of DAO balance converted to Eth and Btc before 2024 Bitcoin halving ?
This proposal has been REJECTED by a DAO Committee Member (0xfe91c0c482e09600f2d1dbca10fd705bc6de60bc)