[IIP-6] DAO funds diversification

We’ve seen a rise in eth prices recently.
At this moment our smart contract contains 15.5 eth which is equal to 24,500 USD.
I have a FUD that the prices may start to go down again and quite quickly.
As it is impossible to predict the future I propose to withdraw eth from the smart contract and diversify the funds.
There are always risks involved with any type of crypto asset:

  • eth can sharply decrease in price
  • USDC can lose its peg and/or crash

I can see three options for this proposal:

  1. keep everything as is
  2. withdraw funds from the smart contract and keep 50% of them in eth and 50% in USDC
  3. withdraw funds from the smart contract and keep everything in USDC

Please keep in mind the following forthcoming DAO expenses:

  • we will soon start acquiring the first subnet (about 15k$)
  • we will probably need to put aside 5k$ for the next year’s DAO LLC renewal.

I will now submit the proposal to our snapshot, and we can keep this thread for discussions.

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As we going to purchase subnet soon, I suggest option 3

Could you please vote for that in the snapshot? thanks!

Hi, the option to do a 50% USDC / 50% ETH split won.
However, it looks like the incorporation process will take longer than expected.
I received an estimation for it to be completed in the second part of February.
That means two things:

  1. The person executing these diversification transactions will have a doubtful corporate veil protection and may be considered as acting on his own
  2. It pushes back the date of the first subnet acquisition

That being said I’ll proceed with funds diversification as soon as we got our corporate entity set up.