ShapeShift

Summary: The Treasury Management and Diversification committee’s (TMDC) priority is to take a holistic approach to DAO treasury management, and must act toward the long-term success of FOX token and the ShapeShift DAO. The committee will be a dedicated team of members carefully watching, acting and reporting on a weekly basis.

The proposed committee members selected by poll by the community are: Danielle, Amicus.eth / Rotorless, albitrage / Al, profMcC, seven7hwave/ Kent

The amount of 60,000,000 FOX is proposed to be available to the committee to implore strategies as they see fit. Examples: collateralization/ debt, liquidity provision, yield farming, and other defi strategies.

Motivation: To be able to act quickly, manage and execute on treasury management and diversification strategies to allow for a more active, holistic and long-term approach to treasury management.

Specifications: Establish a TMDC under the Tokenomics Workstream. Committee would consist of 5 qualified community members. The committee would be governed by a simple majority rule. The committee requires 4 members for quorum when voting. The committee meetings will be open to the ShapeShift DAO community but only the 5 members will vote. This proposal would be an initial test of the committee Trial basis for 3 months. November 18th, 2021 - February 16, 2022 There is no compensation for these roles for the trial basis. A subsequent proposal is required for the committee to continue on During the trial basis the committee will not have any direct access to the DAO treasury, there will be a check and balance in place with the current trusted signers of the DAO. If a majority of the committee vote to approve the X, then this committee will work with the trusted signers of the DAO to execute the trade, project etc.

Governance of the committee: The ShapeShift DAO can vote to replace the committee or remove their power at any time. The DAO can vote to replace any single member on the committee at any time. If a member of the committee quits their duties before the end of the trial period, a new committee member must be elected by community vote.

State of the Treasury (11/2/21): Restricted Treasury via Sablier Stream 242 million FOX was initially granted 221,000 FOX per day is available to claim Withdrawn 25 million FOX so far 242,000,000 - 24,000,000 = 218,000,000 FOX Restricted Treasury via Sablier Stream 600,000 FOX available to claim (11/2/21) 329,518,327 FOX ← Available DAO Treasury ~325 million from airdrop ~25 million from sablier stream “Expenses” ~19 million FOX so far: Treasury disbursements

Requirements of the TMDC: The TMDC priority is to take a holistic approach to DAO treasury management, and must act toward the long-term success of FOX token and the ShapeShift DAO. The committee will be a dedicated team of members carefully watching, acting and reporting on a weekly basis. 60,000,000 FOX is available to the committee to implore strategies as they see fit. Examples: collateralization/ debt, liquidity provision, yield farming, and other defi strategies. The committee will administer the pools the community owns. (adding assets, ltv ratios, admin fees, recommending liquidity incentives etc) If the committee should want to sell FOX: The committees tactics should have limited price impact on the FOX token, no one tactic can drop the price by more than 2%

Current roadmap/plan: Participate in all active discussions currently happening in the forum and make sure on day 1 we can be effective stewards of the Treasury. Including but not limited to: Rari, FEI/TRIBE, Index Coop Assist the Support Workstream

Things this committee should consider and that have support: Obtain enough Stablecoins for 1 year of runway To be able to support the work streams in salary, promotional giveaways and pay for subscriptions/services. (ETH, Stables, etc) Design and implement a strategy that manages assets and debts to achieve 2+ years runway

Benefits: To be able to act quickly, manage and execute on treasury management and diversification strategies to allow for a more active, holistic and long-term approach to treasury management. Drawbacks: There are risks in trusting in 5 committee members of 60,000,000 FOX. We have tried to combat them by having a check and balance with the signers of the DAO being separate. We also have limited the risk to only 6% of the overall treasury. As well as a trial basis for these 5 committee members.

Vote: Yes- I support the establishment of the Treasury Management and Diversification Committee and elect the following members to the committee: Danielle, Amicus.eth / Rotorless, albitrage / Al, profMcC, seven7hwave/ Kent

No- I do not support this proposal in its current form