My fellow retards,
Some weeks back (and many a red candle ago), Phren Rake proposed that the DAO begin to reallocate the treasury in a fashion that serves both the finance types and the phonon-dreamers who inhabit this community.
In Rake’s proposal is a simple outline of why this effort is necessary, reproduced here:
The goal of the DAO is to propagate growth of the protocol, while the goal of the treasury is to allocate resources accordingly in order to sustain intrinsic value and ensure the DAO has significant resources to allocate as need be.
Each dollar a protocol owns or receives as revenue should be allocated to its most profitable use. Typically, this includes saving the money in the treasury, reinvesting it into growth or new products, or paying it out token holders via token buybacks or dividends.
The DAO treasury needs to survive bear markets. Which essentially means that: “Building an economic framework that will sustain the protocol for at least two to four years even if the entire market collapses by 80% (and remains in the red for quite some time.)”
$PHONON now hovers around the lowest point it’s been in the token’s short history, and appears trapped by the fact that liquidity has disappeared around those prices. Since the present allocation of the treasury is near 100% $PHONON, the project’s runway takes this loss straight on the chin.
Many phrens foretold this, but “hunger for gainz” and “preference for doing nothing” (self-inclusive, this is as much your deacon’s failure as anyone’s) kept the DAO from reallocating the treasury to something that would have had a much better ride down the stairs.
Treasury Allocations proposed by Rake:
- 65% Phonon: Native Protocol Token
- 20% StableCoins
- 10% Network Tokens (Proposed 8% ETH native with reserved 2% allocation for an L2)
- 5% Reserved for Strategic Partners (These tokens could also be put into DeFi protocols while retaining the ability to vote on Governance Proposals using Element Finance's Voting Vaults)
This plan would have given the DAO some resistance to the whims of the market, and a bit of flexibility with the 5% for strategic partners, which could be sold OTC as vested tokens to any number of interested, value-aligned funds, sold openly to the community, or used to incentivise liquidity. Elves agree unanimously that these options are valuable tools the DAO deserves to have at its disposal. The real hurdle has been in how to decide when and where to implement them.
Ultimately this comes down to assigning responsibility and compensation for the role of “handling treasury allocation”. Phon/ongod and G-unit will reward the first 3 quality proposals which define a working group role that solves this problem and empowers someone(s) to act in the best interest of the DAO with regards to strategic deployment of the treasury.
Submit your work at Phonon DAO, where there are burdens for shoulders strong enough to carry them.
Tips to phonongod.eth will be invested in bounties that advance the Phonon project.
Hatemail to phonongod@protonmail.com will be scathingly considered.
Targets for the marketcap of PHONON DAO remain:
$1b by Q2 2022, $12b by EOY.
On the high end, $300b marketcap in 3 years.
“preference for doing nothing” | **this is the kinda shit that makes me crazy**