teleo-codex/inbox/archive/2024-12-02-futardio-proposal-approve-deans-list-treasury-management.md

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

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

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

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

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

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