[DAO:aa11110] Advance Proposal: Establishment of DAO Reserve or Hedge Fund

Governance
1

by 0x2faab28f398c330430157893a48edc3799d99159 (LandLordDao)

Problem Statement

The Decentraland (DCL) community manages crucial DAO funds to support project and community development. However, the volatility of the MANA price may pose a potential threat to these funds. We need to devise a strategy to protect the funds as the price rises and establish reserve or hedge funds for future projects and emergency situations.

Proposal

We suggest the formulation of the following advance strategy to sell a portion of MANA when its price reaches $0.80-$2to establish a DAO reserve or hedge fund. Different percentages of sale can be considered, including 15%, 20%, 25%, and 30%.

Rationale

Here are key reasons supporting this proposal:

Risk Management: The volatility of the MANA price can potentially threaten DAO funds. By selling a portion of MANA to establish a reserve or hedge fund, we can mitigate the adverse impact of price fluctuations on the funds.

Project Sustainability: Reserve funds can be used to support future projects or emergency situations, ensuring the sustainable development of the DCL community.

Transparency: The percentages of sale will undergo community discussions and voting to ensure transparency and consensus in decision-making.

Conclusion

To safeguard DAO funds and ensure the sustainable development of the DCL community, we recommend the formulation of a sale strategy when MANA reaches $0.80- $2 to establish a reserve or hedge fund. The community can determine the specific percentage of sale through discussions and voting to ensure maximum transparency and consensus. We encourage the community to discuss and vote on this proposal to determine the best way forward.

  • 15%
  • 20%
  • 25%
  • 30%
  • Invalid question/options

Vote on this proposal on the Decentraland DAO

View this proposal on Snapshot

2

It seems we may be entering a time of excitement in the market again - I would love to see us sell some MANA if it reaches a new all time high to diversify and bring some stability to our reserves.

However, I am not sure about these prices, it could go lower, it could go higher - I have no real reference of ‘value’ here and am not willing to speculate other than knowing a new ATH is probably a good time to sell.

Unless there is other metrics availably that indicate a medium-term froth period (like RSI/MA’s being over extended) I would be wary of specific price points, given that the DAO selling mana may be the very thing that suppresses our prices and prevents us from having a speculation run to ATH and beyond, which could be far better capitalized on.

3

If this proposal passes, I will write one draft on at what price we should start selling.

4

Advance Proposal: Establishment of DAO Reserve or Hedge Fund

This proposal is now in status: FINISHED.

Voting Results:

  • 15% 21% 1,442,072 VP (14 votes)
  • 20% 41% 2,686,566 VP (44 votes)
  • 25% 1% 1 VP (2 votes)
  • 30% 0% 0 VP (0 votes)
  • Invalid question/options 37% 2,522,884 VP (19 votes)