After the highly successful public and private sale of Doodles, as well as the continued secondary market sales, the DoodleBank in a great position with nearly 760 ETH in the treasury! Wow!
With such strong capital just sitting around waiting to be utilized, I would like to propose a phased strategy to build the strength of the DoodleBank! For now I have broken down the strategy into 3 phases. The scope of each of these phases may or may not include multiple proposals. For example, Phase 1 may include multiple proposals as we decide which assets to diversify the treasury into, or maybe we decide to make a single reallocation into BTC, in which case Phase 1 would be complete, and we would move onto Phase 2. The phases simplied:
- Phase 1: Diversify the treasury = Build a wider base of liquidity!
- Phase 2: Put the treasury to work = Use existing capital to grow the treasury!
- Phase 3: Maintain the treasury = Keep the fund healthy!
##PHASE 1 PRELIMINARY PROPOSAL##
Doodle ID: Doodle #1458
Preliminary Proposal Summary: Allocate 10-15% of the DoodleBank ETH reserves into BTC or a collateralized Bitcoin backed asset such as WBTC. This action shall only be taken upon deciding where and how this asset will be custodied.
Rationale: Bitcoin has arguably become the most powerful and desired form of collateral on the global market. With a fixed supply of 21 million BTC and just over 90% of supply in circulation, many investors also see BTC as the strongest store-of-value asset in the world. The argument for Bitcoin as digital gold grows stronger every day.
Doodles is seen as a bluechip NFT project, so Doodles deserves a bluechip quality treasury right?
Many seasoned investors, accountants, and fund managers may likely to advise that a reasonable amount of diversifcation is always good thing. I believe it would be prudent of the Doodle community to diversify a significant portion of the treasury from ETH into BTC for a multitude of reasons:
Derisk from the price volatility of ETH in the case BTC.Dominace prevails.
Build an allocation in the Doodle Bank treasury of a highly desireable store-of-value and form of collateral.
Build confidence in possible investors and prospects that the Doodle community takes conservative measures in maintaining the trearsury.
Timeline: ASAP. Ideally completing the allocation before the 15th of November (two weeks from releasing this draft).
Goal: Swap 10-15% of the ETH held in the DoodleBank treasury to BTC or WBTC with the intention of holding the asset in the treasury long term, or putting the asset to work though a lending platform or liquidity pool durring Phase 2 of the strategy.
Cost: $Duffle Bags$… 10-15% of the ETH held in DoodleBank treasury at the time of official snapshot proposal.
Accountability: Funds would be transfered to a clean Multisig wallet, and swapped using a Gnosis 2 of 3 multisig wallet with Poopie, Tulip, and Burnt as signers. Poopie, Tulip, and Burnt would be responsible for further transfers or swaps as deemed appropriate by Doodle voters.