I propose we move 3M USDC from the treasury, into the CSDO multisig for the purposes of supporting workstream’s budgets such that workstreams can exchange GTC with USDC from the multisig instead of open markets. The goal is reduce the amount of GTC leaving the DAO.
Abstract
GTC has long been in ratio harmony with Eth at a .001 to 1 ratio. We are now closer to a .0005 to 1 ratio and we would like to restore this ratio by reducing the amount of GTC going into the market. The DAO currently has over 8M in USDC in its treasury, and I am proposing we withdraw 3M of that USDC to distribute via workstreams instead of GTC.
Here are a few of the details for consideration:
This USDC is available to workstreams for up to 40% of their monthly budgets
This USDC should last ~6mos. The 6mo is important to ensure accountability towards making progress on our goals
The DAO is also exploring cost cutting measures and GTC utility opportunities to further reduce the GTC supply going into the market.
After the 3M is exhausted, we will review and discuss if more is needed for workstreams.
Motivation
GTC is our governance token, and our utility token that secures public goods. It is important we continue to retain GTC and start to leverage the USDC reserves we have. We have a number of projects that are starting to really take off, and now is the right time to protect the emissions of GTC in anticipation of its further use.
Specification
Move 3M USDC to the CSDO multisig: eth:0x931896A8A9313F622a2AFCA76d1471B97955e551
This Gnosis safe is a 4/6 with other workstream leads in the DAO.
Benefits
Reducing the amount of GTC leaving the DAO has a few benefits:
Ensures we support future governance and distribution of GTC on a longer term timeline
Offers workstreams the ability to stabilize contributor rewards and center them on USDC
Provides stability in transfer rates for GTC
Drawbacks
Reduces the safety net the DAO has for rewarding contributors as we are drawing down the USDC reserves.
Vote
The vote will be a yes / no vote. Move the 3M in USDC to the CSDO mutlisig, or do not move the GTC. (with abstain as an option as well)
1 - Yes to move the 3M USDC to be used for workstream budgets (40%)
2 - No do not leverage the USDC
The treasury diversification efforts last year were in part to be able to leverage in case of something like this happening. In my opinion, it’s a reasonable approach for us to utilize a portion of it.
I vote yes on moving $3m USDC for work streams to use for workstream budgets.
Thanks @kyle for this proposal. While I support this proposal with the outlined motivation, I’d like to urge the community to experiment with strategies which enable value accrual to the GTC token in the long term.
I wonder if fulfilling the financial sustainability intent as outlined in Update: GitcoinDAO's Adopted Purpose and Essential Intents requires a dedicated crew/WG as opposed to CSDO which has yet to offer a comprehensive long term strategy
Agree with this proposal and will vote yes on moving $3m USDC for work streams. With the current market turmoil, the sustainability and utility of GTC tokens need more delicate design and handling.
I’ll vote yes for this because I think making this move right now will be very helpful for reducing our GTC emissions which is important for long term sustainability. As @azeem mentioned, this is precisely why we made treasury diversification efforts.
This post mentions exploring GTC utility and cost cutting which I think are essential for the long term sustainability of the DAO. We must continue making progress in these areas and I believe we should be doubling down here.
Thanks for this suggestion. This is in the works and we will have some more to share soon. We are nearly 4 weeks in to a 16 week engagement with some folks
Thanks for proposing this in a timely manner. I’m fully in support and would even allow the 40% of budgets number to be exceeded at discretion of CSDO.
I would be curious to hear more about the 2nd workstream ( Financial Sustainability) mentioned on this link as well as the current state of Gitcoin Treasury Strategy. I’ve read the diversification updates on the forum but I’m sure there is more to it.
Is there a way to participate in the current discussions? Or are you free to chat in the coming days on this topic? You can find me on TG at @Oxloth if helpful
