---
type: source
title: "Futardio: Approve Dean's List Treasury Management?"
author: "futard.io"
url: "https://www.futard.io/proposal/4gaJ8bi1gpNEx6xSSsepjVBM6GXqTDfLbiUbzXbARHW1"
date: 2024-12-02
domain: internet-finance
format: data
status: unprocessed
tags: [futardio, metadao, futarchy, solana, governance]
event_type: proposal
---

## Proposal Details
- Project: IslandDAO
- Proposal: Approve Dean's List Treasury Management?
- Status: Passed
- Created: 2024-12-02
- URL: https://www.futard.io/proposal/4gaJ8bi1gpNEx6xSSsepjVBM6GXqTDfLbiUbzXbARHW1
- Description: The longevity of the DAO depends on maintaining financial stability through stable reserves.
- Categories: {'category': 'Dao'}, {'category': 'Treasury'}
- Discussion: https://discord.gg/kex9sSW46x

## Summary

### 🎯 Key Points  
The proposal aims to convert Dean's List DAO treasury assets into stablecoins to enhance financial stability, increase the probability of survival from 50% to 90%, and positively impact the Fully Diluted Valuation (FDV) by 5% to 20%.

### 📊 Impact Analysis  
#### 👥 Stakeholder Impact  
This strategy provides stakeholders with greater confidence in the DAO's financial health and operational sustainability.

#### 📈 Upside Potential  
The conversion to stablecoins could increase the FDV from $500,000 to a range of $525,000–$600,000, reflecting improved market perception.

#### 📉 Risk Factors  
While the proposal reduces volatility risk, it may limit potential gains from higher-risk assets if market conditions improve.

## Content

![](https://deanslistdao.notion.site/image/https%3A%2F%2Fprod-files-secure.s3.us-west-2.amazonaws.com%2Fc7b79f46-7e94-4d8e-af20-da4d8b6f1979%2Fc98fd49b-069a-4377-b985-dacaac642d8e%2Ffutarchy.jpeg?table=block&id=149e0e34-e8f4-8087-badd-fb065473e6ca&spaceId=c7b79f46-7e94-4d8e-af20-da4d8b6f1979&width=2000&userId=&cache=v2)

## Impact of De-Risking DL DAO Treasury on Longevity and FDV

### 1. Longevity Analysis

The longevity of the DAO depends on maintaining financial stability through stable reserves. The treasury, valued between $75,000 and $87,000 at $350 SOL (without DEAN in consideration), is proposed to be converted into stablecoins to reduce risk.

### Longevity Benefits

1. **Reduction in Risk:** Stablecoins provide immunity to SOL and SPL tokens price volatility, securing the treasury's value.  
2. **Operational Buffer:** Locking in $75,000–$87,000 ensures predictable funding for operations and development.  

**Probability of survival:**

- **Before de-risking:** 50% (subject to market volatility). 

- **After de-risking:** 90% (stable reserves secured).  

Thus, de-risking increases the probability of DAO longevity by 40 percentage points (from 50% to 90%).

![*credits - @BearUntied*](https://deanslistdao.notion.site/image/https%3A%2F%2Fprod-files-secure.s3.us-west-2.amazonaws.com%2Fc7b79f46-7e94-4d8e-af20-da4d8b6f1979%2Fc490d66f-cf0b-4493-88bf-45c699e0755f%2Fimage.png?table=block&id=14be0e34-e8f4-8085-9fb6-fcaf6aa3a576&spaceId=c7b79f46-7e94-4d8e-af20-da4d8b6f1979&width=1420&userId=&cache=v2)

*credits - @BearUntied*

### 2. Impact on Fully Diluted Valuation

The current FDV is $500,000 (Conservative FDV to accommodate proposal duration). De-risking the treasury by converting to stablecoins positively impacts market perception, reflecting the DAO’s financial prudence. Investors may attribute higher value due to reduced uncertainty.

De-risking results in a confidence boost, modeled as a percentage increase in FDV. Two scenarios were calculated:

1. **Low Confidence Boost (5%):**

- **Updated FDV:** $500,000 × (1 + 0.05) = $525,000

- **Percentage Increase:** (525,000 - 500,000) / 500,000 × 100 = 5%

2. **High Confidence Boost (20%):**

- **Updated FDV:** $500,000 × (1 + 0.20) = $600,000

- **Percentage Increase:** (600,000 - 500,000) / 500,000 × 100 = 20%

![*credits - @BearUntied*](https://deanslistdao.notion.site/image/https%3A%2F%2Fprod-files-secure.s3.us-west-2.amazonaws.com%2Fc7b79f46-7e94-4d8e-af20-da4d8b6f1979%2Fe3614fdc-754c-4199-a145-2d3054a5ac8c%2Fimage.png?table=block&id=14fe0e34-e8f4-80b2-a019-e6de146f8da4&spaceId=c7b79f46-7e94-4d8e-af20-da4d8b6f1979&width=1420&userId=&cache=v2)

*credits - @BearUntied*

### 3. TWAP Calculation

We require TWAP > 3% for the proposal to pass:

**DL DAO FDV:** $500,000

**DL DAO FDV + 3%:** $515,000

The potential increase from de-risking our treasuries is well above the TWAP requirements.

![*credits - @BearUntied*](https://deanslistdao.notion.site/image/https%3A%2F%2Fprod-files-secure.s3.us-west-2.amazonaws.com%2Fc7b79f46-7e94-4d8e-af20-da4d8b6f1979%2F562b4283-c907-4eff-bc1e-9571d374c61f%2Fimage.png?table=block&id=14fe0e34-e8f4-80db-81cd-d842b5e1d1f6&spaceId=c7b79f46-7e94-4d8e-af20-da4d8b6f1979&width=1420&userId=&cache=v2)

*credits - @BearUntied*

### 4. Combined Analysis and Conclusion

De-risking the treasury by converting risky assets to stablecoins significantly enhances the DAO’s probability of survival and positively impacts FDV:

- **Longevity Probability Increase:** From 50% to 90% (+40%).

- **FDV Increase:** $500,000 to a range of $525,000–$600,000 (5%–20% increase).

This strategy ensures financial stability while signaling prudence to investors, promoting the DAO's growth and resilience.

![*credits - @BearUntied*](https://deanslistdao.notion.site/image/https%3A%2F%2Fprod-files-secure.s3.us-west-2.amazonaws.com%2Fc7b79f46-7e94-4d8e-af20-da4d8b6f1979%2F4280a9e8-3b77-4692-b594-63f2d4d2e2a3%2Fimage.png?table=block&id=14fe0e34-e8f4-804f-936d-f48188183426&spaceId=c7b79f46-7e94-4d8e-af20-da4d8b6f1979&width=1420&userId=&cache=v2)

*credits - @BearUntied*

## Raw Data

- Proposal account: `4gaJ8bi1gpNEx6xSSsepjVBM6GXqTDfLbiUbzXbARHW1`
- Proposal number: 5
- DAO account: `9TKh2yav4WpSNkFV2cLybrWZETBWZBkQ6WB6qV9Nt9dJ`
- Proposer: `proPaC9tVZEsmgDtNhx15e7nSpoojtPD3H9h4GqSqB2`
- Autocrat version: 0.3
- Completed: 2024-12-05
- Ended: 2024-12-05
