We appreciate everyone’s comments on our previous post. After careful consideration, we have decided to shift our focus primarily to research and propose the creation of a Treasury Working Group (TWG).
With a working group focused on research and analysis, we can provide value by exploring changes to tokenomics, incentives, and capital management strategies for treasury funds, primarily the POOL within the treasury. The working group would give more insight on potential capital management decisions, identify and assess risk when funds are deployed outside of the PoolTogether smart contract system, and negotiate deals on behalf of the DAO.
The TWG would have custody of operational funds but no treasury funds will be in the custody of the TWG. The current Ops teams and executive signers can execute any strategies, while the TWG can provide analysis and context to ensure our community is well informed before making decisions about treasury management or changes to POOL tokenomics. For an example of the kind of detail the proposed TWG could provide, see our comment on the Olympus Pro LP Proposal.
Our core purpose would be:
- Ensure safety and prudence go into every decision
- Drive future protocol growth
- Identify sustainable solutions
- Present objective data to the community
Deliverables: While future deliverables are hard to define, some of the initial focus will revolve around existing and new strategies for the treasury:
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Creating a risk framework similar to Nexus Mutual’s Investment Philosophy to outline objectives and establish risk tolerance for funds deployed outside of PoolTogether
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Pursuing a listing for POOL on Aave to allow the treasury to borrow against treasury POOL
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Identifying changes to existing POOL tokenomics to deliver greater value to the community
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Deciding terms/conditions for discretionary buybacks that are then executed by Ops
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Analyzing user activity on V4 as more liquidity shifts to the V4 protocol
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Exploring using debt to explore different user growth strategies
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Exploring ways to increase protocol controlled value
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Review USDC/DAI reserves being used for Sponsorship Capital in V3 and determine the best ways to allocate our stablecoin reserves to increase adoption of V4
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With V4, there are new capabilities that the TMC can explore such as how to delegate a chance of winning to provide more targeted Sponsorship Capital-like uses that incentivize user growth. Determining the most effective way to leverage strategies to grow deposits in V4 would be a large focus.
Organization: We propose that the working group have a chair, who is simply responsible for coordinating communication with the community and scheduling TWG meetings. The rest of the members would serve the TWG and dedicate more time when their expertise/skillset is needed for executing deliverables.
Time Commitments & Compensation: Time commitment would solely depend on need, and the TWG would most likely require short sprints with periods of inactivity other than a few core members who manage strategies or track efficacy.
The TWG would operate in a similar fashion as the PoolGrants committee does, where there are several members who provide commentary and analysis while core members of the committee invest the most time. Having greater diversity of opinion among a small working group with a core group of dedicated working group members is likely the most effective way for the TWG to operate.
The TWG would handle payment using Coordinape. A separate circle would be created for use by members of the TWG. Since TWG members will contribute when they can offer the most value, TWG members can vote on each others’ contributions using Coordinape. Payment would be in POOL and not USD. Basing pay in POOL aligns the TWG’s incentives with the wider community. This makes distribution of payment fair while limiting the amount of funds that can be dispersed. Payment each month would be capped at a maximum amount of hours worked per week. This cap on hours worked would allow members to contribute where they deliver value but ensure that no one person earns outsized rewards and that the TWG cannot abuse the system.
Quarterly funding would be approved through direct governance. Any operational funds would be held within a multi-sig with 4/7 signers required to execute transactions. Funding would be added on a monthly basis to Coordinape using the TWG operational multi-sig.
Proposed Chair and Members of the TWG
Chair: TheRealTuna
Members:
- regisisland
- Mkkoll
- Gabor
- Drcpu
- Underthesea
- Torgin
- Llama seat (rotating)
Overall, the proposed members want to serve the community, use their existing skills to grow deposits and effectively manage treasury assets so we can optimise our returns and prepare for the future of PoolTogether.
This post serves as a “jumping off point” to start a discussion about creating a TWG. At the conclusion of this discussion, we will put together two proposals that can be submitted under one PTIP, which would include:
- Create the TWG; and
- TWG Deliverables + Quarterly Budget
- Yes
- No
0 voters
