Community Call Treasury Tuesday - March 28, 2023

View the agenda for this event.

Recent Events and News

• Coinbase received a Wells Notice from the SEC. These notices frequently precede enforcement action.
• Sushiswap’s CEO, Jared Gray, received a subpoena and is setting up a legal defense fund proposal.
• The CFTC has filed a complaint against Binance. The commission classified both ETH and BTC as commodities in their report, which stands in contrast to the SEC’s claim that these assets are securities.
• Do Kwon was arrested in Montenegro.
• Justin Sun/Tron is being investigated by the SEC for a number of alleged crimes, including market manipulation.
• The parties behind the Euler hack have returned 50% of funds.
• The Federal Reserve has continued to raise interest rates, with another 0.25% increase.
• In order to improve the movement of funds across the globe, the Central Bank has increased the availability of liquidity swaps.
• Data indicates that investors are continuing to pivot to money markets as banking uncertainty persists.

Proposals Under Sophon Review [6:30]

• KIP-36 - 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.
• KIP-38 - 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. This proposal would replenish the cap to the lesser of $5M or 5% of the treasury’s notional value.
• KIP-39 - 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.

Draft Proposals [8:40]

• Create Incubator DAO - This proposal explores the possibility of spinning off the DAO into an incubator to explore new opportunities for ROOK holders.
• Dissolution of the DAO - This KIP proposes to dissolve the DAO and distribute treasury funds pro-rata to ROOK token holders.
• Treasury Yield Management for USDC via USV - This proposal suggests investing 20% of the Rook DAO Treasury USDC holdings in Phuture’s USDC savings vault (USV).
• The Origin team has introduced the OUSD Treasury Utilization Proposal. Members of the Origin team joined a recent Treasury Tuesday call to provide more color on the proposal and answer questions (see the Rookbase recap).
• Rook DAO Acquisition of ROOK - This buyback proposal recommends that the DAO acquire a strategic position of ROOK in line with other DAOs’ native token holdings (~25%) to align the DAO and token holders and use for incentives.

Proposals Adopted [10:00]

• Swapping of Like Kind Assets - This proposal grants the multisig discretion to rebalance stablecoins. Considering the events of the past year (UST and USDC de-peg), there is a need for rapid response to extreme market conditions.
• KIP-42 - Extend KIP-26 through Q2 2023: This proposal extends the powers granted to JZ and Hazard to continue as CTO and CEO of Rook Labs.
• KIP-43 - Q1 and Q2 Labs Budget Request: This proposal outlines current and forecasted budget needs, and requests funding for Rook Labs operations.

Initiative Collaboration [14:00]

• Incubator DAO - This proposal outlines the creation of an independent Incubator DAO governed by ROOK holders to explore new value-generating opportunities for the token.
• The team could put together revenue projections to help community members make educated predictions around ROOK token valuation. The Q2 Report included datasets that could model future revenue and be adapted for new projections.
• 50 pointed out that if a new DAO is created, members will need to step up in order to manage it. Interested parties should make themselves known in the community. [25:00]
• The Incubator DAO would be bootstrapped with $10 million, which is a sizable amount of capital for executing on whatever vision the community imagines.
• The new DAO would be able to outline its own vision and operate independently.
• Many of the existing governance structures could be used for the new DAO.
• Considering the interests of many of the existing Rook DAO members, the Incubator DAO could continue to explore the MEV design space and work cooperatively with Rook. However, a totally different direction is also encouraged.
• This week’s Rook DAO Treasury Report is now available.

Open Floor [40:15]

• The Stablecoin Report, which analyzes various stablecoin offerings and outlines their risks, has been updated with OUSD and current numbers. Those who are well-versed in this area are invited to read and provide feedback.
• The primary goal of the treasury’s stablecoin strategy is risk aversion rather than yield generation.