EcoDAO treasury management - straight to DTOP

Ecosystem
#1

dHEDGE EcoDAO esteemed fellow councilors,

The formation of dHEDGE EcoDAO was supported by many dHEDGE DAO and to fund the operations of ecosystem and user growth initiatives a sum of 70k stablecoin + 50k DHT + 10 ETH was granted.

Currently the funds are sitting mostly idle on the EcoDAO multisig and are used mostly to fund monthly councilor’s reward and community initiative, I’d like to propose allocation of between 25k to 35k stablecoin to DTOP.

The rational behind it:
The funds were originally supposed to cover 4 to 6 months (as per the proposal from Feb. 2021). That period is already almost over and and given that most of the expenses thus far were in DHT, majority of the stablecoin in the treasury won’t likely to be used too soon and in the meantime it gets exposed to fiat currency devaluation by the various forms of QE programs lead by the fed.

Allocating up to $35k to DTOP would be a relatively less risky strategy and could result in increasing the EcoDAO’s operational cost runway.

Looking forward to hear feedback from the community.

Exponent

1 Like
May 2021 dHEDGE EcoDAO Councilor reward thread
#2

Great proposal @exponent

We should be leading the way and setting the example in DAO treasury management. dTOP is the ideal way for DAOs to invest idle funds.

I support $35k allocation.

2 Likes
#3

I’m for this proposal. Putting in 35k into dtop seems appropriate to me. What happens in case we need to withdraw partial sum from it? Do we need to initiate proposal each time we need to withdraw it?

Because of the current gas fees initiating withdrawal of small partial sum may incure gas fees > withdrawal amount. So we should set up a process and rules for withdrawing funds allocated to dtop.

#4

Good questions, I hypothesis that DTOP could return 2x in not too long. As such, the associated gas cost can be reimbursed to the councilor who execute the transaction. Of course such an investment does have a downside risk which cannot be entirely removed.

I’d suggest to appoint 1 councilor as treasury admin that monitor it and recommend the council when should funds allocation be changed. Any takers ?

#5

$35k invested in dTOP will still leave us with just over $20k in stables. This should cover 2 months+ of grants. I do agree that the investments will need to be monitored. I am happy to be treasury admin.

#6

Agree, need to boost some more activity