$12MM Treasury Diversification This proposal is now in status: REJECTED. Voting Results: * Yes 5% 179,860 VP (24 votes) * No 95% 2,968,396 VP (58 votes)

We would start the diversification process immediately. The $12mm represents 12-24 months of runway based on estimated grant expenditures

Why 12 -24 months and not instantly considering sentiment is bearish till q2+ 2024? As for the suit remark you Live in NY. You take runs around Central Park and Manhattan. You deal with firms with assets in the millions. You enter dao after dao for business to make a profit on intel and market analysis. You then strategize and exercise or tell people how they should said assets. If you are not a suit I dont know what is. Either way im vote yes now cause it kinda urks me that us lil dudes with the small vp or that have been lucky enough to be delegated by the current dao whales. Have to watch this happen and only Yemel has taken some kinda measure. Until a day ago i couldnt even put my own proposal forward.

A diversification would benefit the DAO and we would do it professionally via market makers, VC firms, funds, etc. to secure competitive terms for DCL. If the DAO either 1) doesn't want to diversify its treasury or 2) doesn't want to hire Alastor to do it, that's totally fine. No need to name call though. Bottom line is that all of the DAO contributors are paid in stables, there are no stables in the treasury, and the price of MANA could continue to erode. Elementary level finance indicates that this is a significant issue that the DAO would be wise to address.

Yea no two people have tried or done this https://forum.decentraland.org/t/dao-66tzgla-should-1-4-of-dao-balance-converted-to-eth-and-btc-before-2024-bitcoin-halving/14705 and https://governance.decentraland.org/proposal/?id=34e58e10-52cf-11ec-be0c-afec86cba5e5 If dao wants pay two suits 60k each to make some charts and list some probabilities thats cool. You can sell and trickle release coins. Could even hit up one them dudes you made a bil last company and have them whale the price. Point remains its business for you two grant from uniswaps grant here grant there ride the waves. If you all cared youd already be pitching a way to save the dao using your skills. Instead your locking it behind a paywall. I dont think the dao should support you. Someone from the community themselves should promote the idea like @yemel did last time. Thats just my oppinion tho. Dont blame you for trying to do what suits do and make easy money.

[quote="Manadaiquiri, post:3, topic:16660, full:true"] The 120k fees charged by the firm (aka the asked grant amount) for these transactions seem way too high, it *could* be lower than 1k. Even though it’s 1% of 12 millions, the analysis was the main part of the job and was paid for 20k. I think the DAO need diversification, in stable coins included, but it could just be executed without fees through a governance proposal and perhaps be for more than 12 millions. [/quote] Investment banks that raise capital charge anywhere between 3-5% of total capital raised. Our fee is significantly below that at 1%. Like I mentioned in our proposal, we would not only diversify through market makers, but would leverage our relationships with potential investors to manage a competitive process for the MANA sale. In our original report (which we were paid $20k for), we recommended a treasury diversification ASAP. No one at the DAO decided to do that, and since then, the value of the treasury has eroded by $100MM. [quote="TheCryptoTengu, post:4, topic:16660"] you got 20k last time and missed all the updates. Now i guess you need 100k more? Lolz [/quote] That was more to do with not understanding how the update process itself worked. If you look at the final report, it was delivered on time and was thorough and thoughtful. I know that the members of the grants committee we worked with would agree that we were very responsive to all of their requests and delivered what we promised we would deliver. [quote="TheCryptoTengu, post:6, topic:16660, full:true"] Yea but they can do this themselves with proven stable coins that are not AI based and are burn based. The fee these dudes want for a guessing game is dramatically stupid. When you have multiple multi millionaires on the foundation that should be able to pull there heads out there ass and make a proposal to have a safe treasury. [/quote] My response to this would be "if it's so easy, why hasn't someone done it so far?" This is very clearly a significant issue that the DAO has not addressed, and waiting to do this has already cost the DAO tens of millions of dollars. Waiting until someone at the foundation does will likely cost the DAO even more money. If our proposal were to be accepted, we would execute this immediately. To be blunt, the fact that virtually the entire treasury is denominated in MANA and thus far no one has taken the initiative to remedy this is a significant oversight for the DAO. To be very direct, if the price of MANA continues to erode, the DAO will lose the ability to pay contributors and all development work on the Decentraland ecosystem will cease to exist. If that is a risk that the DAO is comfortable taking, then no need to diversify the treasury.

Yea but they can do this themselves with proven stable coins that are not AI based and are burn based. The fee these dudes want for a guessing game is dramatically stupid. When you have multiple multi millionaires on the foundation that should be able to pull there heads out there ass and make a proposal to have a safe treasury.

Alastor, thank you for all your help in preparing the recent financial report. I agree, the treasury is definitely unhedged and undercapitalized, with material capital expenditures/grant liabilities. I can say that the 1% Management fee asked is pretty industry standard (some even charging 2%). My question is for the Foundation, **is there a current Investment Committee/Accounting Department that is already looking into this, or is analyzing this?** I am abstaining from voting for the time being until I have better clarity on the efforts being done. Great idea & an important investment the DAO and community must consider. I appreciate your expertise thus far.

you got 20k last time and missed all the updates. Now i guess you need 100k more? Lolz https://governance.decentraland.org/proposal/?id=a31bfa40-ed02-11ec-aa01-87bd234b340d https://vesting.decentraland.org/#/0x5451f9e5bf9bb64b7c3a0c56d0d4c8346a168f20

The 120k fees charged by the firm (aka the asked grant amount) for these transactions seem way too high, it *could* be lower than 1k. Even though it's 1% of 12 millions, the analysis was the main part of the job and was paid for 20k. I think the DAO need diversification, in stable coins included, but it could just be executed without fees through a governance proposal and perhaps be for more than 12 millions.

I like this strategy, I like your approach, I think we need to setup a Bid for this Mission which can be submitted to by various parties to determine who would take on this task. I do believe you earn extra points for leading this effort, especially to this point. Cheers.