A treasury allocation policy is established in this proposal as a guide for elected officials.
The purpose of this proposal is not to specify how treasury funds should be allocated or deployed at all times. Rather, it acknowledges conditions that are predetermined to be generally accepted by holders in the current market environment. Therefore, management will have more discretion and the community’s expectations will be aligned.
Due to the current market’s condition, the treasury allocation parameters should maintain moderately risky positions with a majority of stable coins.
Treasury value for current allocations
$129,519,680 ($108,652,438 liquid)*
A range between 45% -75% of liquid assets. A list of Stable Coins for reference include, but are not limited to, USDC, USDT, DAI, MIM, BUSD. Community strategy % goal: eg: 10 - 15% APR
- Between 50% and 80% of Stable Coin Assets should be deployed in yield-generating positions, whether possible.
A range between 10% - 40% of liquid assets in Blue Chip positions.
- No more than 20% of liquid assets should be allocated to any one directional asset at any time.
- No more than 10% of liquid assets should be deployed when initiating a new directional strategy without governance approval.
- No more than 10% of liquid assets should be allocated to shorting strategies at any time without further DAO approval.
- 80% to 90% of Directional Assets should be deployed in yield-generating positions.
A budget of 15% of liquid assets should not be exceeded per quarter. Capital investments in the early stages of development of a protocol or product are known as seed investments.
Seed assets are also subject to redemption restrictions as per WIP 9 & 18.
At a minimum, the team should deploy an updated TAP once every quarter, whether market conditions have changed or not, in order to maintain a stable record and establish a regular pattern of communication in this area.
Regardless of proximity to our previous or next quarterly TAP review, a new TAP can be deployed whenever the management team believes market conditions have sufficiently changed.
There is currently no formal procedure in place to determine which funds should go to the treasury and which should go to the Wonderland farm. Currently, all funds are directed to the Treasury and the council votes on the farm allocation. The following default percentages for future revenue and token allocations are proposed:
Upon the realizing of profits, including seed investments
- 75% of the profit that is generated through the use of strategies shall go to the Treasury.
- 25% of the profit that is generated through the use of strategies shall go to the Wonderland farm.
- Proposer shall receive their percentage reward before allocating, when applicable.
Farm allocations are also subject to redemption restrictions as per WIP 9 & 18.
Note that the rate at which the amount allocated to the farm will be handled by the relevant elected officials to ensure a more stable and sustainable return.
- In order to improve the farm’s balance or health, the Council may adjust the split internally by vote. Following the council vote, the Risk officer will make a final determination.
- If an asset outside of cryptocurrency or digital assets is acquired the treasury-farm split will be determined on a case-by-case basis.