[PASSED] - SGTM 001: Converting $5M GTC to Stables

[system]

This proposal is now live on Snapshot

[griff]

I have to vote against this proposal. I don’t believe it is in the best interest of the DAO in it’s current form.

Of course I support measures of treasury diversification, but I would personally rather see more efforts towards creating utility and demand for GTC, and then promoting those efforts to strategic partners and sell them GTC OTC, than see us, as a DAO, publicly signal to the market, that we intend to dump GTC.

Before this post, the price of GTC was $1.76.

Less than 2 days after this post, the price dipped to $1.13

Imagine if the post said:

We have big plans for the GTC token, and want to move 5M GTC to the foundation to make OTC deals with strategic investors for stablecoins.

How different would things have been… hard to say of course, lots of confounding variables.

THAT SAID:

I don’t have much voting power and it looks like the coinbase approach will probably win… If so PLEASE do not hold funds on Coinbase or any other centralized exchange.

A wise man once said, “Centralized exchanges are like public bathrooms, go in, do your business and get out. Don’t linger!”

Only send what you want to sell to the exchange and then withdraw. You never know when Coinbase’s compliance crew decides that DAOs selling their own currency is a sketchy thing and then freezes it, not to mention all the other obvious issues that can arise.

Also, there is 2x-10x more liquidity 6 other exchanges (at the time of posting this), so it would be wise to not commit to one exchange but to play the market and use several exchanges to avoid slippage.

[gulliverz]

@deltajuliet

Yes, fund the $5M and execute directly via Coinbase.

Any specific reason for choosing Coinbase, it can be any reputed establishment !

[mars]

@griff

Before this post, the price of GTC was $1.76.

Less than 2 days after this post, the price dipped to $1.13

EDIT / UPDATE:

@griff

We should put more effort into creating utility for GTC

See this:

GTC Token Center

TLDR GTC is a governance token that you can use to get utility within the Gitcoin network. This post describes a new resource, the GTC Token Center. With the GTC Token Center, Gitcoin citizens have a source of truth for what GTC is used for, and can manage their GTC balance, and the benefits that come with it. GTC stands for GTC Token Center Introduction Gitcoin is a network that provides benefits to it’s constituents in the form of sybil resistance & identity (Gitcoin Passport) capital al…

I think that @griff post already triggered some action, so well done you ser!

[griff]

Good point Mars. It did coincide with some major market downward movements (BTC down ~15%), which make it hard to solely attribute the GTC dip (of ~35%) to this post. So I will concede that point.

I hope that the other points don’t get lost in my comment tho:

1. We should put more effort into creating utility for GTC so OTC deals can be easier to close.

2. Hopefully we don’t store funds on CEXs longer than it takes to execute the trades.

3. Coinbase is is not the most liquid CEX, we should use multiple CEXs.

[system]

This snapshot has closed and option to “Yes via diversification wallet” has won.

Metrics:
1740 unique wallets voted
~2.7M GTC tokens cast.

Thank you to the author for the proposal and to all the GTC token delegates who cast their vote.