Conversion of 50% of ETH Treasury Holdings into WBTC
Background: The organization currently holds a significant portion of its treasury in Ethereum (ETH). While ETH has proven to be a strong asset, it’s important to diversify the treasury holdings to mitigate risks and capitalize on other market opportunities. Bitcoin (BTC) has historically shown to be a solid investment and a store of value. However, direct BTC investment can have some logistical complications. Wrapped Bitcoin (WBTC) offers a compromise by representing Bitcoin on the Ethereum blockchain, making it easier to handle alongside our existing ETH holdings.
Proposal:
- It is proposed that 50% of the current ETH holdings in the treasury be converted into WBTC. This conversion will not only diversify the portfolio but also allow the organization to leverage upcoming market events, such as the anticipated approval of a Bitcoin ETF.
- Leave at the team discretion the ability to supply these WBTC on finance plattforms such as AAVE or Curve to generate an additional yield
Rationale: Diversification: Holding a large percentage of assets in a single form poses risks, especially in the volatile cryptocurrency market. Diversifying into WBTC will mitigate some of these risks.
Liquidity: WBTC provides the benefits of BTC with the added liquidity of being on the Ethereum network. It offers easier trading pairs with existing ETH-based tokens.
Upcoming BTC ETF Approval: The market is expecting the approval of a Bitcoin ETF. This approval is likely to push BTC prices higher. By holding WBTC, we can capitalize on this event while keeping the assets within the Ethereum ecosystem.
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0x6556...0B8977 | 5.371M | Yes |
 0x47f9...a5D3D8 | 2.668M | Yes |
 0xa352...37b02C | 2.111M | Yes |
 0x90c8...9b361A | 49,806 | Yes |
 0xFB1D...AF8aB2 | 45,585 | Yes |
VOTE POWER
Proposal Status
- Thu October 19 2023, 02:56 pmVoting Period Starts
- Sun October 22 2023, 02:56 pmEnd Voting Period
Current Results
1-Yes
10.362M