Llama is publishing this statement to highlight any potential issues that may arise.
Llama is a closed community in the early development phase whereby individuals have come together and apply for grants that leverage the knowledge and skills of the broader community. Several members of the Index Coop community are actively contributing via supporting various ongoing grants.
At the time of writing, the individuals mentioned in the links are currently active members of both communities, Aave and Gitcoin grants.
Other members of Index Coop have joined Llama, been active contributors and then when the grant application was unsuccessful remain idle in discord. The number of active contributors changes with workload.
The Llama Diversified Index was developed with Gitcoin’s treasury front of mind. Numerous Index Coop contributors provided input when designing the balanced portfolio construct. All future proceeds from LDI flow to Llama’s treasury and there is no commitment/arrangement with any individual relating to the proceeds from LDI.
Llama values its community members and their relationship with Index Coop. As no individual is directly financially linked to the product and only has indirect exposure to LDI via Llama like the Bankless community is to BED, we do not foresee any potential conflict of interest arising.
Thank you for your statement, it raises a number of questions.
If Llama is a community that forms groups of individuals that come together for specific grants, and LDI is a result of a Gitcoin application, does that mean that the income resulting from $LDI will be directed towards to Gitcoin?
I’m not sure I follow the logic that INDEXcoop contributors will not receive future benefits from %LDI. Surely the goal of $LDI is to benefit the Llama community and thus all contributors. I suppose an analogy would be that there are no plans for INDEX holders to benefit from $DPI streaming fees, however, to claim that INDEX holder have no beneficial interest in $DPI would be a bold claim.
I see a number of key differences between Bankless and Llama.
entry to the Bankless DAO / discourd is open to anyone who purchases 35,000 (??) $BANK, or to those who are invited as a gusts on their discord.
Bankless DAO and their funding mechanism is visible (on and off chain).
The leadership structure of Bankless DAO is viable.
I’m not aware of any members of Bankless DAO who were also senior members of INDEXcoop while the BED index was being designed, negotiated and launched.
So, I remain to be convinced that a closed community like Llama does not present a potential for conflicts of interest that are not publicly acknowledged and openly discussed.
Thank you for the questions. Hopefully our answers gain your acceptance.
In short, No. All proceeds flow to the treasury and given Llama is in the build phase it is reasonable to assume any revenue generated is likely to be reinvested in growing Llama. The text below did allude to this and Llama thanks you for clarifying.
Perhaps no two DAO are identical copy cats
It is very common for early stage communities to be gated. Once Llama is nearer to launch, Llama will have worked through points 1 and 2, but currently these are things yet to be determined. Once determined, Llama intends to be as transparent wherever possible.
Regarding leadership structure, Llama is building a core team and hiring as needed. @HelloShreyas is the founder and no Index Coop member is Full Time and with Full Time defining who is core, no Index Coop community member is core to Llama.
We are excited that you raised the below, we might be able to share some alpha here. But keep in mind this is just an idea at this stage.
Llama has presented the idea during the commercial discussion with Index Coop, that if Index Coop provides Liquidity Mining incentives for LDI, subject to certain performance goals, Llama will reward Index Coop with some kind of ownership in Llama. Index Coop then has the same exposure as all other joint community members. This will align community incentives through ownership.
Oh and FWIW this idea came from a non core Llama member, who is a part of the Index community member. Innovative collaboration is just one example of how the two communities are strong through a LDI partnership.
We seek guidance here, @Matthew_Graham, did ask a few times if there was any COI or if anyone has thoughts around this topic. Others have also been added to the chat and since been silent eagerly awaiting direction. Llama believes some folks failed to reply :(, others deflected to the governance forum and those who did reply gave a green light to proceed.
If this is an issue, then please do let all Llama community members know where they stand and if necessary, other community members from Llama can assist.