m3taversal
1073c231c8
Co-authored-by: m3taversal <m3taversal@gmail.com> Co-committed-by: m3taversal <m3taversal@gmail.com>
124 lines
5.8 KiB
Markdown
124 lines
5.8 KiB
Markdown
---
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type: source
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title: "Futardio: Approve Dean's List Treasury Management?"
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author: "futard.io"
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url: "https://www.futard.io/proposal/4gaJ8bi1gpNEx6xSSsepjVBM6GXqTDfLbiUbzXbARHW1"
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date: 2024-12-02
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domain: internet-finance
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format: data
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status: unprocessed
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tags: [futardio, metadao, futarchy, solana, governance]
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event_type: proposal
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---
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## Proposal Details
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- Project: IslandDAO
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- Proposal: Approve Dean's List Treasury Management?
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- Status: Passed
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- Created: 2024-12-02
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- URL: https://www.futard.io/proposal/4gaJ8bi1gpNEx6xSSsepjVBM6GXqTDfLbiUbzXbARHW1
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- Description: The longevity of the DAO depends on maintaining financial stability through stable reserves.
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- Categories: {'category': 'Dao'}, {'category': 'Treasury'}
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- Discussion: https://discord.gg/kex9sSW46x
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## Summary
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### 🎯 Key Points
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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%.
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### 📊 Impact Analysis
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#### 👥 Stakeholder Impact
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This strategy provides stakeholders with greater confidence in the DAO's financial health and operational sustainability.
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#### 📈 Upside Potential
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The conversion to stablecoins could increase the FDV from $500,000 to a range of $525,000–$600,000, reflecting improved market perception.
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#### 📉 Risk Factors
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While the proposal reduces volatility risk, it may limit potential gains from higher-risk assets if market conditions improve.
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## Content
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## Impact of De-Risking DL DAO Treasury on Longevity and FDV
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### 1. Longevity Analysis
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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.
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### Longevity Benefits
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1. **Reduction in Risk:** Stablecoins provide immunity to SOL and SPL tokens price volatility, securing the treasury's value.
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2. **Operational Buffer:** Locking in $75,000–$87,000 ensures predictable funding for operations and development.
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**Probability of survival:**
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- **Before de-risking:** 50% (subject to market volatility).
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- **After de-risking:** 90% (stable reserves secured).
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Thus, de-risking increases the probability of DAO longevity by 40 percentage points (from 50% to 90%).
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*credits - @BearUntied*
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### 2. Impact on Fully Diluted Valuation
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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.
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De-risking results in a confidence boost, modeled as a percentage increase in FDV. Two scenarios were calculated:
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1. **Low Confidence Boost (5%):**
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- **Updated FDV:** $500,000 × (1 + 0.05) = $525,000
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- **Percentage Increase:** (525,000 - 500,000) / 500,000 × 100 = 5%
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2. **High Confidence Boost (20%):**
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- **Updated FDV:** $500,000 × (1 + 0.20) = $600,000
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- **Percentage Increase:** (600,000 - 500,000) / 500,000 × 100 = 20%
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*credits - @BearUntied*
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### 3. TWAP Calculation
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We require TWAP > 3% for the proposal to pass:
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**DL DAO FDV:** $500,000
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**DL DAO FDV + 3%:** $515,000
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The potential increase from de-risking our treasuries is well above the TWAP requirements.
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*credits - @BearUntied*
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### 4. Combined Analysis and Conclusion
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De-risking the treasury by converting risky assets to stablecoins significantly enhances the DAO’s probability of survival and positively impacts FDV:
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- **Longevity Probability Increase:** From 50% to 90% (+40%).
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- **FDV Increase:** $500,000 to a range of $525,000–$600,000 (5%–20% increase).
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This strategy ensures financial stability while signaling prudence to investors, promoting the DAO's growth and resilience.
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*credits - @BearUntied*
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## Raw Data
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- Proposal account: `4gaJ8bi1gpNEx6xSSsepjVBM6GXqTDfLbiUbzXbARHW1`
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- Proposal number: 5
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- DAO account: `9TKh2yav4WpSNkFV2cLybrWZETBWZBkQ6WB6qV9Nt9dJ`
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- Proposer: `proPaC9tVZEsmgDtNhx15e7nSpoojtPD3H9h4GqSqB2`
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- Autocrat version: 0.3
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- Completed: 2024-12-05
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- Ended: 2024-12-05
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