Community Call Treasury Tuesday - December 13, 2022

View the agenda for this event.

AMA Key Takeaways

• Jonah is a software engineer and co-founder of Den, a product that “helps multi-sigs move fast, without compromising security.”
• Kaito is a co-founder of Utopia, a payroll and expense management product for DAOs.
• Jonah is motivated by the high activity and energy levels of the current bear market. In previous cycles, many builders and participants left the industry. [3:33]
• Kaito is motivated by the tangible impact that crypto has on the foundations of the internet economy. [6:08]
• Decentralized coordination is a key problem in crypto due to information asymmetry, day-to-day incentivization, and morale.
• The panel discussed the benefits and challenges of streamlining the efficiency of multi-sigs by optimizing for both speed and security. [10:40]
• DAOs introduce new concepts of “liquid labor” and “liquid capital”: contributors are able to quickly jump in and out of projects, and capital can be allocated more easily than before. [20:00]
• Balancing governance with operations is a common issue, and DAOs are challenged to design models in which both the token holders and organization retain a fair share of control. [22:03]
• The future of DAOs will likely be a spectrum of various models, but organizations that are highly parallelizable are ideal candidates for decentralization. [24:30]
• DAOs are ideal for sustainable democratic governance structures outside of specific nation-states, but perhaps are not a good fit to replicate traditional large corporations outside of public goods. [31:45]
• Hyperstructures could be one of the ideal use cases for decentralized finance and large-scale internet-native public goods governance. [36:27]
• Role models: Kaito: Jason Choi and the Gnosis team. Jonah: Brian Armstrong of Coinbase. [42:15]
• Kaito is inspired to allow organizations to make better capital allocation decisions. [46:00]
• Jonah is excited to help align the various participants in the crypto-native economy: assets, actors, and agreements. [46:40]

Housekeeping

• Replenish Discretionary Investment Limit Funds: This proposal gives the treasury the ability to quickly react to and take advantage of market opportunities in a non-public manner. The proposal would replenish the cap to the lesser of $5M or 5% of the treasury’s notional value.
• Deployment of Additional ETH for Yield Generation: The ETH yield generation experiment has been successful, so there is a desire to increase the limit to 80% of idle ETH.
• Expand Funding and Strategies of Testing Wallet: Originally $600K was allocated to the testing wallet effort. Due to the success in generating yield, an additional $400K in DAI funding is being requested.
• Discretionary Swapping of Like-Kind Assets: Currently, the treasury must go through the slow governance process to swap like-kind assets. This proposal would mitigate risk by giving the treasury the discretion to swap between stablecoins, Ethereum/ETH derivatives, and Bitcoin/BTC derivatives.
• An emergency rebalancing proposal is being drafted that would allow the team to react quickly to market events, balancing speed versus risk.
• The Approved Stablecoin Framework and Treasury Management Framework are both in draft.
• SBF was arrested today in the Bahamas.