Decentraland DAO Treasury Diversification
by 0xd6c957f9a6411f35d01baae2658758f277408878 (Rizk)
Introduction:
Our DAO’s value is tied to the assets we hold, and right now, it’s mostly MANA. I analysed the importance of this connection in my article Metaverse Triangle : DAO & Decentraland & MANA and explained in depth the value of the mana (asset) we have in the treasury to the value of the DAO in general. highlighting how a robust MANA treasury bolsters the DAO’s value. But there’s another crucial piece: Ethereum. Decentraland runs on Ethereum, making it the bedrock and the main base of our virtual world. It ensures secure ownership, smooth transactions, and the smarts powering smart contracts. That’s why I propose carefully expanding our ETH holdings over the next couple of years.
Strategy for Growth:
To strategically increase our Ethereum holdings in the treasury, I propose a systematic approach within a percentage of the Unused fund of the Grant Program’s quarterly structure . The program operates across four quarters (Q1, Q2, Q3, Q4), with a predefined maximum mana allocation determined by the formula: 5,500,000 * 0.7 = 3,850,000 mana/Q.
In instances when we dont reach the quarterly maximum limit, as seen in Q4-2023, with an unused amount of ≈$400k from the allocated funds for this quarter’s grants fund, I propose utilizing these funds to purchase Ethereum. The community would have a decisive role in determining the percentage—whether it’s 25%, 50%, or 75%.
Conclusion:
This innovative approach ensures that, in quarters where optimal grants aren’t fully utilised, we can leverage the remaining funds to incrementally buy Ethereum. It’s important to note that in some months, when the entire budget is utilised, we won’t proceed with Ethereum purchases during those quarters, while other months like Q4 2023 we have a budget for such action.
While individual transactions may appear modest, their cumulative impact over the long run can significantly enhance our asset holdings and fortify the treasury. This method aligns with our commitment to prudent financial management and sustainable growth of our treasury.
- 25% of the unused budget
- 50% of the unused budget
- 75% of the unused budget
- Invalid question/options
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0x5b5c...63E244 | 875,899 | 50% of the unused budget |
 0x247e...9db418 | 798,868 | 50% of the unused budget |
 0xd6eF...9D6eF6 | 638,882 | 50% of the unused budget |
 0x2684...eaF8Bd | 621,884 | 50% of the unused budget |
 0x4599...b6b1D6 | 504,671 | 25% of the unused budget |
VOTE POWER
Proposal Status
- Wed December 20 2023, 02:06 amVoting Period Starts
- Mon December 25 2023, 02:06 amEnd Voting Period
Current Results
1-50% of the unused budget
3.568M
2-25% of the unused budget
1.014M
3-Invalid question/options
10,823.737