Ok guys I just want to talk about the concept of a treasury and how I think it fits into the defi ecosystem and the crypto markets as a whole. I am not trying to say anything specific towards Wonderland’s Treasury and how it should be used… for the moment… but I feel like a lot of people I’ve seen in discord don’t fully understand the depth of such a concept.
Cryptocurrency projects are still very loosely defined entities, they are usually backed by a leadership and dev team to support and maintain themselves. Most of the time these individuals are not payed and take time out of their busy lives to come together and build these projects out of pure love and passion. This is all well and good for the majority of projects but when it comes to defi, volunteer work and the joy of passion is simply not enough to maintain itself. defi represents something beyond other sectors that exist within the cryptocurrency atmosphere. It is creating the foundations of blockchain banking, investing, and financial and economic oversight for the entire market.
At the moment exchanges and developers are the primary entities that control the direction of this innovative world, but dao’s and defi challenges that idea to it’s core. Regulation and the integration of the traditional worlds of finance and investing are slowly creeping themselves within the cryptocurrency atmosphere. They seek to gain control in order to improve their positions and serve themselves for years to come. I am not against this, but as an ideologist of what bitcoin and other blockchains stand for I can see where this is currently leading. The traditional world is well funded and pays people top dollar to research and develop their approach’s into our market. But I do not think they should be treated as a threat to the defi ecosystem… yet. These entities know where to draw the line and where to let others pass before them without any traditional regulation and fundamental oversight from the top.
If there is one thing people who love cryptocurrency should embrace it is that any amount of economic regulation and oversight of cryptocurrency should come from within the community that is building this new landscape and not from those coming in from outside of it. Otherwise our values are threatened and creative innovation becomes a follower of this world rather than it’s leader.
And this is where defi comes into play. Defi is purely integrated within the cryptocurrency atmosphere in ways traditional banks and other existing financial institutions could never be. It is our only advantage in competing with them. But as defi grows, the more they will try to scare us into slowing down less they get outrun entirely. And as for a defi treasury that is run at it’s heart by the community and the dao that supports it, there are many implications.
Broadly speaking what is the purpose of treasury? from a macro point of view treasuries are the backbone of an economy. They serve to regulate everything from the top down. From banks, to investing firms, to price’s, to people. Treasuries are the functional vehicles of the tools used to regulate economies, their scopes are large and wide. But what does this mean for the integration of treasury system’s within the world of cryptocurrency? It means they must serve as the core stabilizing factor and be the primary measurement of growth for it’s encompassing areas of interests.
A cryptocurrency treasury must be able to maintain itself effortlessly and be able to produce profits strategically without risk. It cannot threaten itself in anyway otherwise it risks implosion and shakes the arms of the ecosystems it has tied itself to, causing disruptive volatility to fragile partners and allies. If treasuries are to be a thing in crypto currency they cannot be allowed to be influenced easily otherwise the traditional banking and investing entities that embrace this world will topple them over with ease and over time and find a way to replace them. A competitive nature between the centralized and decentralized world of money is absolutely necessary for the worthwhile and overall progress of both. But in this lawless land of money, defi can not allow itself to be bullied and beat around as if it is welcoming that kind of interference.
So then how should a cryptocurrency treasury be used today? Well it depends obviously on the interest of it’s dao and the ecosystem it is embracing and choosing to represent. A cryptocurrency treasury today should be aligning itself to other blockchain ecosystems that have their own developers, dao’s, and communities. It should be supporting and funding it’s own ecosystem, as new worthwhile projects rise and existing ones learn how to thrive. It should be fighting to expand it’s economic capacities as much as possible through profits and proper leadership. It should be experimenting with idea’s of dao led oversight and figuring out way’s to grow ceaselessly regardless of the direction of the overall market. If a cryptocurrency treasury embraces these things it will thrive in the long run and provide fuel for the path of it’s surrounding ecosystem. It will have the support of other ecosystems at it’s back. Because of this, the overall community of those passionate about the entire world of decentralized finance and cryptocurrency will outweigh any amount of disruption the world of traditional banking and finance can bring. Thats the big idea!
How should wonderland treat it’s treasury? As purely a source of quick and easy profit for it’s investors? Or should it try to be something much much more than that? Never forget how early we are in this game, any amount of apy or dividends earned will be outmatched by the amount of money inflation will bring into these markets over time.
now somebody fight me please!