Proposal Template

Background

KrauseHouse DAO achieved a stellar result in hitting the 1000 ETH Crowdsale hardcap, well within the outlined timeframe. At present, the DAO treasury makeup is entirely in ETH.

Summary

In the interests of ensuring that there is enough runway for long term DAO operations. I propose that a portion of ETH raised via the Mirror Crowdsale be converted into stablecoins.

The stablecoin I propose we convert to is USDC since it is a regulated store of value instrument. The issuer of USDC, Circle is subject to 46 state regulators which conduct frequent exams of Circle’s activities. This should help the DAO remain compliant from a regulatory standpoint as the goal of attaining an ownership stake in a NBA Team will require for Krause House to maintain a clean image and not convey the wrong message to the world outside of Web3.

The conversion of assets should consist of a decent amount to ensure adequate runway in the foreseeable future. There should also be consideration for providing a portion of liquidity to seeding any Liquidity Pools that the DAO decides to deploy.

Details

I believe that in order for the DAO to succeed in the long term it is imperative that funds be converted into stable assets. It would be difficult to project and forecast operation, development and promotional costs if the DAO was to remain in a constantly fluctuating asset such as ETH.

Although my biases tell me to remain in Ethereum to capture the prospective upside, I hope DAO members can understand that this is not a personal portfolio to take risks with. We should secure the runway to weather any type of market, bull or bear.

By undertaking this diversification we will be taking risk off and ensure there is ample funds in the treasury for the long term.

Diversification Options

Convert to the ratios of:

1. 95% USDC and 5% ETH

2. 80% USDC and 20% ETH

3. 60% USDC and 40% ETH

4. 100% ETH

Provided various options as DAO members may have differing opinions. Left the 5% of ETH in the interest of gas costs and multi-sig transactions - Understandably is a very large amount of ETH to play with but happy to hear everyone’s feedback.