Economics Working Group Proposal

Formal Proposals
1

Economics Working Group Proposal

To be able to respond to developing markets and protect the treasury and the future of the DAO, we would like to create an Economics Working Group that’s focus is responsible management of the DAO’s Treasury.

Background:

Since the ending of the bootstrapping group we have not had active management of the Treasury. We would like to form a group of three leaders and anyone else who would like to participate in the continued management of the Treasury and be able to feel confident on what the DAO can and can not afford to fund.

Allowances:

The Economics Working Group will offer guidance on whether to sell or hold any AirDrops received by DAO Multisigs.
The Economics Working Group will be able to use 32 ETH to be able to create a validator for the DAO.
The Economics Working Group will be able to use funds from either AirDrops or validator rewards to fund liquidity for $PHONON or other means to gain yield.

Goals:

Establish a monthly budget with the DAO Leader as to what the DAO can afford to spend.
Manage the diversification of the Treasury.
Be able to provide to future working groups on advice of budgets that are able to be paid out.
Work to maintain a 2 year run time of funds to guarantee the success of PhononDAO
Create a structure for how airdrops to any of the DAO multisigs are handled.

Success:

This project will be successful when:

The DAOs treasury is diversified so we are able to pay out rewards or budgets to aid in the growth of the DAO.
We have identified low risk ways to continue to add to the DAOs treasury.
We are able to assist other working groups with realistic budgets that they can operate with.

Requirements:

We will create a team of 3 Leaders: Rake, SuperSynapse and Myself. Anyone DAO Member is allowed to join this group. This will not be a full-time job for any of the team. I expect the team to work 3 hours per week. We will run a weekly economics meeting that will be public for all DAO Members to provide input to the working group. For the first term of this Working Group we will be unpaid. In the future we hope to be able to setup ways to generate income for the DAO and we will look at creating payment from those funds providing our success.

  • Yes, create the Economics WG
  • No, we need a better structure

0 voters

1 Like
2

strike the second on and I’m all for it.

3

This WG is sorely needed, does this allow the WG to diversify the treasury if they deem it prudent?

4

I don’t feel like it is a good process to have a small collection of people make large decisions. This working group would be able to post snapshots for the DAO to vote on. It would really be more of a group to research and offer suggestions on how we best can move forward.

5

To clarify, the Econ working group would not be paying out other working groups. But just see if their budgets are feasible and able to be paid out by the DAO.

6

I don’t know enough about the current structure, so it would be great if this group’s task could be full transparency as well. Who holds which keys, who has control over eg validator rewards, how is ensured that they are only a tool to the dao, not an interest guided individual etc etc.

Also a word on how to manage a treasury: The sole purpose is to protect the success of the project. Nothing else. If the DAO is successful, it’s because they managed to create a superior new product that yields profit. It will never outperform this goal with good treasury management, it can only fail everything and everyone with bad treasury management.

Few examples: Stablefarming on web2 Celsius was considered very conservative = 100% loss (assets frozen as of today as the company is liquidated). Stable farming UST was considered low risk = 100 % loss. Diversifying into different projects tokens was considered "safer than only holding your own token = down just as bad 60-80% + horrible signaling in terms of confidence in own product.