It has come to our attention that the conversation around management of the DAO’s treasury has become highly fragmented. There are numerous entities involved in the conversation at this point, which is made evident by Gauntlet and Karpatkey’s recent proposal to manage a portion of the treasury and Avantgarde’s attempt at establishing a paid treasury oversight council. @Pepperoni_Jo3 and @thedevanshmehta have also been involved in some of these conversations, and Entropy was also contacted by other service providers asking questions on the matter.
In order to align on the optimal path forward, we believe it is critical to start by getting everyone involved on the same page. Therefore, we are suggesting a working group call to take place this week on Thursday September 12th at 1pm ET. Based on conversations that have taken place over the past week (both on the forum and Telegram), Entropy will look to facilitate this process further.
It would also be helpful to have an open telegram group (can even be created during the call) where everyone working on this question can be aware of the others doing so
We have received a lot of inbound interest to join this working group session. In order to ensure the most efficient use of our limited time, we put together an agenda for the call.
Agenda:
3 minutes - Intro from @entropy laying out where we are on the treasury management conversation and how we got here.
5 minutes - @Pepperoni_Jo3 / @r3gen_Finance to discuss the DAO’s high level spend/revenue, ops budget short comings, treasury sensitivity to ARB volatility, ARB’s historical inflation, and general takeaways from Regen’s most recent Token Flow report.
5 minutes - @Bernard from @Areta to discuss their views on overall financial strategy
5 minutes - @tnorm from @gauntlet to briefly discuss the perceived shortcomings of the previous karpatkey proposal, and how they see the best path forward.
5 minutes - Q&A for Gauntlet
5 minutes - @justErik and Mona El Isa from @Avantgarde will walk us through their current proposal on the forum and how they view the best path forward.
5 minutes - Q&A for Avantgarde
Remainder of time allotted for open conversation.
Some key questions Entropy has identified that still need to be answered:
Sizing of active treasury management, and where the sourcing comes from i.e. ARB or ETH?
Many team/investor unlocks, GCP funds overhang, incentive programs, etc. have all led to high monthly ARB inflation versus circulating supply.
Is it important that we diversify infrastructure providers, or is it more beneficial to have all assets in one place for the ease of reporting and transparency/onboarding new managers to a system that is well known within the DAO.
How important is it to the DAO that the infrastructure solution is non-custodial?
What is the mandate/primary goal of active treasury management? Is it growth focused, or is it about generating passive yield? How much should be allocated to each bucket?
Is there any inspiration we can take from the STEP program’s design?
How do we measure risk adjusted returns and hold treasury managers accountable?
Is the DAO budget a prerequisite to treasury management? If so, who will be in charge of this and how much extra time does it add to the process?
This list is non-exhaustive, and we encourage others to come with other key talking points that this group will need to work through over the coming weeks/months.
Thank you in advance for everyone who attended today’s call.
For those who missed the call, a video recording can be found here and the comments made in the google meet chat throughout the call can be found here.
There were a lot of valuable thoughts shared, but it is clear that we will need to host an additional call to ensure actions are being taken that progress this initiative. Given the fact that Token2049 is next week and many folks will be traveling, we are targeting Tuesday, September 25th at 9am ET for the second call. This will be added to the DAO’s open calendar as we draw closer to the aforementioned date.
Entropy Advisors will be working on a proposal based on all of the information gathered thus far, and will be prepared to present our solution during this second call. We will encourage constructive criticism of this v1 draft, and are hopeful we can come to a consensus on a concrete proposal that we can then take to the forum/Snapshot.