Community Call Treasury Tuesday - December 13, 2022

The treasury team is joined by Kaito from Utopia Labs and Jonah from Den to discuss web3 infrastructure and treasury operations solutions.

Rook branding with blue chess piece
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Treasury Tuesday calls are open-invite meetings to drive the strategy, risk management, and overall discussion for all aspects relating to the Rook DAO Treasury.

To participate in the calls and ask any questions you may have, join our Discord!

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.