Summary

Reserve $1.5M of the treasury’s USDC to fund DAO contributor payroll and extend development runway.

Proposal

The DAO should be resilient in the face of prolonged periods of suppressed bonding volume and negative price impact. It is important that during these periods, the DAO continues to build new products and develop the market for ReFi. As such, we propose adjusting our compensation structure to allow for the use of USDC, in addition to KLIMA.

The adjustment would be as follows:

1. Reserve $1.5M of USDC from the treasury for the purposes of contributor allocations;
2. Pay contributors their monthly allocations with a combination of USDC and KLIMA; and
3. Enable the Core Team to decide the ratio between USDC and KLIMA (initially this would be a 50:50 split)

Under the assumptions that price remains constant at $5.50 and bonding inflows continue declining by 13% week-on-week (i.e. bear market scenario), an allocation plan comprising 50:50 split between KLIMA and USDC (up to $1.5M) would extend the runway to February 2023.

Under this option, we extend our runway while retaining optionality with the remainder of our USDC reserves. We will be actively monitoring market conditions and our financial position over the coming months, and may re-evaluate how we fund payroll at a future date. Options for future considerations may include drawing additional USDC reserves from the Treasury or using debt-based payroll financing (amongst other options).

With the additional runway provided by the USDC reserves, and a significantly leaner and more focused team, we believe we are in an extremely strong position to execute on our product and market development roadmap while weathering any storms that might be ahead of us.

Polling Period

Polling will open at 4pm UTC on May 29th and conclude 3 days later at 4pm UTC on June 1st.