Gitcoin Treasury Diversification

Appreciate your interest, @annika. Your experience is definitely valuable.

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Thanks for your support and feedback, @lefterisjp. Re. compensation - we think $150/hr is reasonable compensation in DeFi to attract strong people to serve in this working group. It is hard to find comparables that are apples-to-apples, but grants programs such as Uniswap Grants and Aave Grants pays members $150/hr.

@DisruptionJoe and @krrisis - thanks for your nomination of @ChrisDean, would be great to have him on board. Chris - can you confirm your interest?

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a pleasure, I agree to distribute the funds, I think it is a rule of large companies not to have all their money in one place, and looking at the issue of cryptos there are old currencies which hardly change in value, but always we will be subject to the volatility caused by some news or companies with other currencies.

I would gladly support the work team

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Appreciate the thoughtfulness of this proposal and excited to see this move forward.

I would love the opportunity to be a part of this Working Group.

In Q3 and Q4 of 2021, I contributed to Gitcoin’s Public Goods Funding workstream, helping to raise funds for GR12 and find ecosystem partners. Additionally, I have been a Core Contributor at Forefront since May 2021 and helped lead the DAO’s Treasury Diversification process. Finally, my work at Syndicate Protocol has given me the opportunity to support and advise on the treasury raises and allocations of a variety of new DAOs, helping navigate many common roadblocks.

Thanks again to @HelloShreyas and the Llama team for the proposal!

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Glad you’re interested, @jihad! You’ve added a ton of value to Gitcoin already and Forefront’s treasury diversification is a model I have in mind for Gitcoin.

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This is an invaluable proposal to long term health and sustainability of the DAO. I would love to participate. A bit of details about me:

involvement in the Gitcoin community - I am currently Gitcoin Holdings COO, but I have resigned (effective Jan 31, 2022) and plan to work full time in the DAO starting Feb 1. I have worked to spin Gitcoin out of Consensys, fund raise, support our DAO launch, and now move full time to a contributor in the DAO.

pertinent knowledge on treasury diversification / strategic partners / DAOs - I have observed a number of other DAO diversifications and bring lots of learning from Gitcoin’s initial fund raise to capitalize the company ahead of the spin out from Consensys.

valuable experience across crypto and non-crypto roles that may be applicable - Well, I hold a forgotten rune wizard, and a few moonshot bots :smiley: In my non-crypto world I was a product lead at Twitter for a number of years, and have been in the tech space for a while.

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Celebrating this finally being out in the wild and the diversification process getting underway asap. Echo @lefterisjp & @Yalor’s points re process and perhaps we need to discuss this @HelloShreyas re one of the TD working group being included in the steward forum

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Gm,

Thank you for posting this thoughtful proposal @HelloShreyas !

I’ve been chatting with Stewards about the matter in DMs, so I’m excited it has become a proposal. (Here’s an example of a stable+governance coin strategy I shared with them in December used by SeedClub, found at audio position 3:40 Goodbye bosses, hello voting and crypto pay: A new kind of company is taking hold | WBUR News .)

I would like to be part of this WG.

  • I’m a KERNEL Fellow KB3 and and I’ve been a community member of Gitcoin since August 2021 in various WGs (mostly Public Goods Library).

  • I’m the (LEETH certified) Chair of LexDAO’s “Performing Rights DAO” project that will draft Ethereum metadata standards “backwards compatible” with DDEX. And I’ll likely be able to access LexDAO’s expertise about treasury diversification if I’m included in this WG (potentially save on legal fees? At least get a second opinion).

  • I’m the Liaison for the Pluriverse/Multiverse DAO that RaidGuild is building for Gitcoin and, if all goes well, I might have to deal with this issue there as well.

  • I’m a “test subject” in that I’m still living month-to-month like many of the contributors most affected by volatility; here’s when I was a test subject in the past, to help explore apartment renting solutions for Web3 contributors https://twitter.com/owocki/status/1459300439422222336 .

  • I’m helping prepare for https://schellingpoint.gitcoin.co , and secured a $10k sponsorship from nfDAO. Additionally, over 50% of the proceeds from the 3D statue https://cheerbot.org 's I’m auctioning at Schelling Point will go to public goods, made possible by grants from nfDAO, dGrants and Schelling Point.

  • I’m a graduate of New Ventures BC’s Venture Accelerator Program, have a background in corporate music publishing, a JD from Western Law, a BBA in music management from Belmont University, hold a patent in a novel software architecture (“Hierarchical Script Database and Database Applications”), created a new kind of software syntax (see https://ape.mirror.zyz ) and discovered multiple mathematical facts including recursive/fractal tilings of the Euclidean plane (e.g. PythagMetal - Alchemy ) and Fibonacci-like integer sequences (e.g. A328604 - OEIS ).

If I am not able to join this WG, I hope that I can in the least be an observer in order to apply what I learn to Gitcoin’s Pluriverse/Metaverse DAO.

Thank you for your time and consideration,
Kyle

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Actually, @HelloShreyas you are in the top 5 delegated to so you will be included in the forum.

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Hi Shreyas, I am interested and am hoping we can sync up to discuss. Thank you for your nomination @DisruptionJoe!

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*her :wink: (Chrisdean = Christine)

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Shreyes

Operationalizing this will be key to it’s success. Per @Yalor concern, I agree the team must be agile. The big question is “how do we mesh trust and reputation of the participants who action the funds allocation decisions with the expertise and degeneracy of those who best know what to do?”

Here are some ideas:

Separate the operations from the subject matter experts

The subject matter experts should be one step away from full degen, but are in the process of getting green pilled. Maybe offer payment as a percentage of their effect on the treasury rather than hourly. The working group may include 2 from CSDO and 3-5 SME.

Have CSDO control the multisig used for execution

When the working group makes a decision, the CSDO can execute it. Why? Because these are all workstream leads with history an reputation with Gitcoin. Plus, they are almost constantly available. They are some of the most active people in the DAO.

Get great risk managers/portfolio managers on the SME working group

Separating the operations from the decisions can allow for better checks and balances. It will let the SME group do what they do best without needing to administer anything. Take a lesson from traditional finance and have the operations executed separately.

I am worried that we might select people who are enthusiastic, successful in other lines of work, and potentially great people for the DAO, but shouldn’t be in this working group unless they have a track record of great trades, proper risk management, and are web 3 native.

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I encourage the idea of including observers, in part as an educational/onboarding way to take advantage of enthusiasm vs. expertise in the long-run. Another way to look at it is institutional knowledge risk management.

I am worried that we might select people who are enthusiastic, successful in other lines of work, and potentially great people for the DAO, but shouldn’t be in this working group unless they have a track record of great trades, proper risk management, and are web 3 native.

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Christine would be a great fit for this indeed :slight_smile:
She is our spreadsheet master and commander.

PS. “she” :sweat_smile:

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Thanks for the feedback, @DisruptionJoe. I’m Daniel from the Llama team. We’re forming this working group to work on the diversification in a manner that’s lean and efficient while having community oversight. After we complete this diversification, we can explore a more permanent working group to focus on managing the overall treasury.

All of the execution can be done in a trustless manner after the working group has made its decision - we will build the smart contracts needed to facilitate the swaps and required vesting. There shouldn’t be too much to do operationally (just whitelisting investor addresses).

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Thanks to everyone who indicated an interest in joining the treasury diversification working group!

We’ve decided to form a working group consisting of:

The working group’s responsibilities will include:

  • Providing feedback on criteria for selecting strategic partners & detailing a process for reaching out to potential partners.
  • Putting up a new forum post asking partners to share their interest in participating in the diversification.
  • Having conversations with potential partners.
  • Responding to community feedback on the next forum post and incorporating in the decision making process.
  • Choosing final list of partners, allocation sizes, and rationale. Sharing with the community for feedback.
  • Whitelisting the final partners’ addresses.
  • Putting up an on-chain proposal and ensuring execution goes smoothly over the following two weeks.
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I think you’d be a great fit here

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Congrats to the new Treasury WG ! :partying_face:
Let us know how Dao members can support you.

And I agree UMA is a great candidate to research regarding treasury management. I was introduced to them about 5 months ago and have been hanging out a bit in their Discord. I think their future is pretty good so I signed up to their new SuperUMAn Dao too. I have access to good content there, but ofc the gist of it is all in the docs online. I am still learning what they can offer but here is a link to their basic slide deck describing how the KPI tokens work.
Please ignore the blank slides in the deck.

One more link to a newer UMA products called Success Tokens.

I am not sure how the KPI option tokens and Success Tokens compare to other alternatives but I will try to figure it out. If nothing else I can connect the Gitcoin economists with the UMA economists.

I’d be happy to help facilitate any coordination between these groups. Maybe EthDenver can be the catalyst. UMA will have a sizeable group at EthDenver I hear.

And on another front entirely, 1Hive has partnered with Hedgey Decentralized Options to experiment with some treasury management ideas. The first round resembled traditional option markets but for round two, which just began, they are trying a different approach. They have basically grouped the five most common option scenarios into liquidity pools into-which dao members buy/invest with stablecoins. So the protocol gets to sell some native tokens for stablecoins, and the dao-members get a chance to profit via discounted purchases of those native tokens. A pic is worth a 1000 words so just take a glance at the website here and you can get the idea. Just imagine $GTC instead of $HNY, the native token of 1Hive. Maybe we can reproduce this kind of market for $GTC in-house. And probably important to mention it they are marketed as way to ‘go-long’ and support projects while benefiting by effectively locking in lower pricing of a dip. They are not so much a degen leverage tool. I can connect you with the Hedgey team if desired.

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I’m not sure if I can be a permanent member in a working group given i’m committed to other things , but happy to be part of any advisory group to help in any way. thanks

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