teleo-codex/decisions/internet-finance/islanddao-treasury-proposal.md

type	entity_type	name	domain	status	parent_entity	platform	proposer	proposal_url	proposal_date	resolution_date	category	summary	tracked_by	created	key_metrics
decision	decision_market	IslandDAO: Treasury Proposal (Dean's List Proposal)	internet-finance	passed	deans-list	futardio	futard.io	https://v1.metadao.fi/deans-list/trade/8SwPfzKhaZ2SQfgfJYfeVRTXALZs2qyFj7kX1dEkd29h	2024-10-10	2024-10-14	treasury	Establish treasury reserve funded by 2.5% of USDC payments with risk-scored asset allocation and quarterly performance reviews	rio	2026-03-11	reserve_funding portfolio_split performance_fee twap_requirement target_dean_price 2.5% of all USDC payments 80% safe assets (RS >= 0.5), 20% risky assets (RS <= 0.5) 5% of quarterly profit, 3-month vesting 3% increase (523k to 539k USDC MCAP) 0.005383 USDC (from 0.005227)

IslandDAO: Treasury Proposal (Dean's List Proposal)

Summary

Proposal to establish a treasury reserve for Dean's List DAO funded by allocating 2.5% of all USDC payments received. Treasury managed by Kai (@DeFi_Kai) with quarterly performance reviews and community oversight. Funds held in Mango Delegate Account via Realms with risk-scored asset allocation framework (80/20 safe/risky split).

Market Data

• Outcome: Passed
• Proposer: futard.io
• Proposal Account: 8SwPfzKhaZ2SQfgfJYfeVRTXALZs2qyFj7kX1dEkd29h
• DAO Account: 9TKh2yav4WpSNkFV2cLybrWZETBWZBkQ6WB6qV9Nt9dJ
• Autocrat Version: 0.3
• Created: 2024-10-10
• Completed: 2024-10-14

Mechanism Design

Risk Scoring Framework

Assets evaluated using weighted risk score (Rs) formula:

• Volatility Weight: 0.4
• Liquidity Risk Weight: 0.2
• Market Cap Risk Weight: 0.3
• Drawdown Risk Weight: 0.1

Assets with RS >= 0.5 classified as safe, RS <= 0.5 as risky. Portfolio maintains 80/20 safe/risky allocation.

Governance Structure

• Treasury Manager: Kai (@DeFi_Kai)
• Quarterly performance reviews required
• Community input on asset diversification
• Performance fee: 5% of quarterly profit with 3-month vesting

Asset Whitelisting Process

New assets must:

1. Increase overall returns
2. Offer diversification when required
3. Replace similar asset with lower risk score

Weight assessed to achieve highest safe returns.

Deliverables (First Quarter)

1. Define "rainy day" scenarios with community
2. Produce treasury reports covering:
   • Treasury growth metrics
   • Asset allocation and diversification
   • Expected return calculations
   • Sharpe Ratio for risk-adjusted performance
   • Maximum drawdown analysis
   • Actual vs expected returns
   • Risk management summary

Significance

First futarchy-governed treasury management proposal with formalized risk scoring framework. Demonstrates evolution from simple pass/fail decisions to complex financial governance with quantitative risk assessment and performance accountability.

Relationship to KB

• deans-list - parent organization
• futardio - governance platform
• metadao - futarchy infrastructure provider

Topics:

• domains/internet-finance/_map

Full Proposal Text

Source: futard.io, tabled 2024-10-10

Establish a reserve within the Dean's List treasury on Realms for financial stability and long-term growth. Funded by allocating 2.5% of all USDC payments received by the DAO.

Treasury Management: Managed by Kai (@DeFi_Kai) with quarterly performance reviews. Reserved funds held in Mango Delegate Account via Realms. Diversification options: USDY (yield-bearing USD) and JLP (Jupiter Liquidity Pools).

Risk Scoring Framework: Rs = (w1·Volatility) + (w2·Liquidity Risk) + (w3·Market Cap Risk) + (w4·Historical Drawdown Risk)

• Volatility Weight: 0.4
• Liquidity Risk: 0.2
• Market Cap Risk: 0.3
• Drawdown Risk: 0.1
• Assets Rs ≤ 0.5 are risky; Rs ≥ 0.5 are safer
• Portfolio: 80/20 split (80% safe, 20% risky)

Performance Fee: 5% of quarterly profit with 3-month vesting.

TWAP Requirement: Current MCAP 523K USDC → target 539K USDC (3% increase). $DEAN price: 0.005227 → 0.005383.

First Quarter Deliverables: Define rainy day scenarios, produce initial treasury reports (growth, allocation, expected returns, Sharpe ratio, max drawdown, risk management summary).