One of the first topics that needs to be addressed once the PHONON token goes live is how to manage the DAO’s treasury. Creating the post for open discussion on some possibilities around diversification and deployment of funds in order to well-equipped to handle market downturns and maximize our capital on hand.
Three areas that need to be addressed are:
- Diversity - so that even if the PHONON token has a drawback the protocol still has other assets to fund critical expenses.
- revenue exceeding outflows - this wil be hard in the beginning when the apps on the network that produce revenue are still being built but it needs to be kept in mind.
- Perpetuity - there should be no end to the time horizon of the DAO funds.
Some early way that we can diversify the PhononDAO treasury is through protocol owned liquidity. Olympus PRO makes this extremely easy. the TL;DR for those unfamiliar is, allocating a certain amount of PHONON from the treasury to be bonded on Olympus PRO. Then liquidity providers can sell their LP tokens of certain pairs like PHONON-USDC to the DAO in exchange for a discounted amount of PHONON that vests over a certain period of time.
A second option for early diversification would be to find VCs who would be willing to purchase a large block of PHONON and agree to some vesting schedule.
~posting this draft for now, will update more later~
ConsenSys owns a significant chunk of PHONON. We should try to get them (Joe Lubin) to speak with his network about it and to help us spread the word.
I like the Olympus Pro push, seems worthy of some treasury tokens.
As discussed in the Discord yesterday, I think we should form some DAO committees re: use of the treasury tokens:
- CEX listing committee
- DEX liquidity and listing, e.g. SushiSwap bonus yield PHONON/ETH pair ASAP
- Social media reviews of the technology (not a token shiller, an objective review)
- Advertising of the protocol on CMC/CoinGecko’s banner ads and elsewhere
- Integration with GridPlus Lattice1 as a UI/UX element for visibility
- Integration with MetaMask as UI/UX option for people with compatible hardware
My first recommendation is we do a test of Snapshot and the DAO voting structure as soon as possible. I would like to see all of the Stewards be active in this project as well, and so far that’s not the case. I recognize it’s the holidays, we launched on a Friday, and the timing isn’t great in that regard, but hopefully next week we see real participation.
It seems like a horrible idea to sell DAO tokens at current price level in the hopes of diversification. Should build out more tools and benefits of PHONON and then, and only then, look to diversify. That being said, using PHONON tokens to achieve something such as a listing seems viable. Just don’t think they should be sold for DAI here.
Another possibility for treasury management & diversification is the use of an enzyme vault. I just took a look at the beta - that will be deployed on polygon and ethereum in January. I attached a screenshot of how the dashboard for the manager will look like. You have basically every cool DeFi-Stuff in one place. Important is: It is possible to set this up in combination with Gnosis Safe to ensure everything is done in a safe and secure way. You can read more about that here Enzyme for Organisations I agree with @phonongod that selling tokens now is not the right point in time - but a crypto winter will occur - and if the next crypto winter arrives the DAO should be well prepared.
I’m a big fan of Enzyme as well. Certainly an opportunity there!
A little late to this party, but I agree with the three main areas. Remaining solvent is incredibly important right now, diversity will hedge our token concentration and perpetuity will organically replenish the liquidity bucket over time.