This proposal is to authorize the Treasury Management and Diversification Committee (TMDC) to:
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advise on the allocation over certain limited assets located within the ShapeShift treasury, amounting to 60M FOX tokens;
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to advise on decisions for the treasury to meet meet payroll and operating expenses with stable coins each month; and
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to continue to advise on the pools the community owns, and to advise on the allocation of the current positions of the DAO’s DeFI earning FOX and other non-native assets (non-FOX) owned by the DAO.
Summary
The TMDC was established for a trial period in SCP -36 in Nov 2021 and subsequently continued on an indefinite basis by SCP -62 in Feb 2022.
SCP-36 authorized the TMDC to advise over 60M FOX tokens to carry out its mandate. At the time the TMDC was continued at SCP-62, the TMDC had not exhausted the initial allotment of 60M FOX under its control from SCP-36.
The TMDC has now exhausted or will reach exhaustion of the allotment of FOX from SCP-36. Consequently, the TMDC is requesting a renewed, similar allotment of 60M FOX tokens to carry on its mandate.
Also, the TMDC is requesting an authorization from the DAO to make advisments that are limited in scope, to ensure that monthly payroll and operating expenses are met with stable coins each month.
This second request arises from the experience of the TMDC over the last five months where the pathway to meeting those obligations was not always clear.
Third, the TMDC is requesting a specification to continue providing administration of the DAO-owned pools, as well as advisement of allocations of the DAO’s non-native assets in DeFi strategies (mostly staking those assets etc) as needed.
Abstract
If this proposal is passed, the TMDC will be authorized to advise on the allocation of an additional 60M FOX tokens in the Shapeshift treasury. This would bring the total allocation under TMDC advice to 120M FOX. This proposal also authorizes the TMDC to exercise limited control over native and non-native assets in the Shapeshift DAO treasury for the express purpose of meeting DAO payment obligations.
Motivation
This document summarizes the TMDC placements and outcomes since inception. https://docs.google.com/spreadsheets/d/1S6p9w08_CJe6vL99j34wyYwC1VJdlY9wj_rGV0i1arQ/edit#gid=1620962441
At the end of March 2022, TMDC made placements in the amount of 55,242,803 FOX and acquired assets valued at approximately $6,520,709 while at the same time taking actions to ensure payroll and operational expenses were met.
With the exhaustion of the allotment of the initial 60M FOX tokens from SCP-36, the TMDC does not have further assets to advise placement on , but still needs to fulfil its mandate, and also still needs to meet the DAO’s future stablecoin obligations.
Authorizing a new allotment of 60M FOX will enable the TMDC to advise on the deployment of the additional tokens to acquire stable coins to meet monthly payments and to build resilience in the DAO treasury.
Benefits
Continue to stack stable coins for treasury
Continue to make stablecoin payments
Improve TMDC’s ability to manage and create new balanced Defi positions
Drawbacks
Opportunity costs of asset placements.
