diff --git a/inbox/archive/2024-12-02-futardio-proposal-approve-deans-list-treasury-management.md b/inbox/archive/2024-12-02-futardio-proposal-approve-deans-list-treasury-management.md new file mode 100644 index 00000000..4399037e --- /dev/null +++ b/inbox/archive/2024-12-02-futardio-proposal-approve-deans-list-treasury-management.md @@ -0,0 +1,124 @@ +--- +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