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Decentraland DAO Treasury Diversification ( Phase B )

PassedDraft

Proposal Details

Author0xd6c9…8878
PublishedDec 09, 2024 22:58
Voting beginsDec 09, 2024 22:58
Voting endsDec 16, 2024 22:58
Snapshot#76802c2

Description

This proposal recommends diversifying the Decentraland DAO treasury by accumulating stablecoins during the current bull market. Given the treasury’s holdings of **80,000,000 MANA** and a monthly vesting of 1,850,000 MANA, the plan proposes converting **3,700,000 MANA** (equivalent to two months' vesting) into stablecoins over the next two to three months. This strategy aims to strengthen the DAO's financial foundation, ensuring liquidity for future grants and mitigating risks associated with market volatility, particularly avoiding the need to sell MANA when liquidity is low. At current market prices, this approach could generate **$2 to $3 million .** The incremental execution minimizes the impact on MANA’s price and offers flexibility for the upcoming council to adjust, continue, or pause the plan as needed.

Voting Rationale

0x2faA…9159Yes1,378,601

let's discuss about it

0xCecB…C893Yes209,462

A little diversification is wise.

0x2182…6F60Abstain0

..

2 Comments

daoDec 16, 2024

Decentraland DAO Treasury Diversification ( Phase B ) This proposal is now in status: PASSED. Voting Results: * Yes 89% 2,417,269 VP (36 votes) * No 10% 269,979 VP (4 votes) * Abstain 1% 5,989 VP (4 votes)

LandlordDaoDec 16, 2024

I do not outright oppose this proposal, but I would like to provide the following perspectives and suggestions for improvement: ### **Key Points:** * **Promoting MANA's circulation and core role in the ecosystem is crucial.** Converting a small portion of MANA into stablecoins may play an important role in future bear markets, but it should not weaken MANA's circulation or ecosystem value. * I strongly emphasize that **MANA should be the primary payment and incentive medium** as it directly enhances the token’s ecosystem value and promotes its utility within Decentraland. --- ### **Alternative Strategy Suggestions:** * **Encourage the DAO to use MANA for all payments and funding initiatives:** * Operational expenses such as funding developers, hosting community events, and purchasing services should prioritize MANA for settlement. * Grantees should be encouraged to hold or utilize MANA rather than immediately converting it to other currencies, increasing reliance on MANA within the ecosystem. * **Stablecoins as reserve funds only:** Strengthen MANA's liquidity through the above methods and reserve stablecoins solely for emergency use, reducing reliance on them for daily operations. --- ### **Proposed Optimizations to the Current Proposal:** * **Reduce the amount of MANA sold:** Limit the MANA converted to stablecoins to no more than 50%, and lock the remaining portion to maintain a balanced market supply. For example: * If the current proposal plans to sell 3,700,000 MANA, only half (1,850,000 MANA) should be sold, with the remaining 1,850,000 MANA locked. * **Specify the use of stablecoins:** Stablecoins should only be used as **emergency reserves** to address extreme market volatility and not for daily operational expenses. Payments and funding should prioritize MANA to reinforce its core role in the ecosystem. --- With these adjustments, I believe the proposal can balance the DAO's financial security with the promotion of MANA's core role and circulation value, achieving both short-term stability and long-term growth.