Proposal: Treasury Working Group

Governance Proposal
1

Proposal: Treasury Working Group

Situation

We are proposing the funding of a Treasury Working Group for an initial 3 month phase ending on 30th June with the view of extending beyond, subject to community approval.

What is the core problem(s) you want to solve?

02/04/2021 - The Index Coop does not have a structure in place to manage our finances and so preserve/grow/sustain our treasury.

Why is this worth addressing today?

When DFC took on the treasury committee role, the intention (set out in this post) was to improve transparency and innovate around the treasury and tokenomics. We have since published our first financial report, communicated our goals and will soon implement a smart treasury. Looking forward, we need to distribute tokens to the community, fund growth, mitigate risks and protect our purchasing power for the long term.

How will you address it?

By forming a focused group to manage our assets, we can more effectively work to meet the goals of treasury management as laid out here. By kicking off the initiatives listed below the TWG intends to preserve, grow and sustain our treasury, making the Index Coop sustainable for the long term.

What impact will this project have?

  • Develop structures for diversifying and managing the treasury
  • Manage Operations Account funding and budgeting
  • Grow links to other DAO treasuries, opening the path to potential IC product purchases and knowledge sharing

Working Group Leader(s)
Updated: 02/02/2021

DFC will be transitioning to the role of MVI community methodologist and therefore will be passing over the lead role in the coming weeks.

30.03.2021 - Discussion with @dylan concluded that someone from SET is to be heavily involve with this working group. Given it is a small group of people and the importance, the Lead or Co-Lead role (if created) may become a SET position. This group is expected to be currently around 4-5 people, excluding DFC or SET representative.

Request for Funding

Proposed Budget

  • Lead Stipend - $7,000/month
  • Other contributors would receive rewards via the monthly rewards distribution
  • $5k over 3 months for smart contract work/gas costs and other miscellaneous items

02/02/2021 - @Matthew_Graham is part-time Index Coop and works full-time.

Organization - How will it work?

What will you be doing?

Review Stage

Ongoing Work

Discussion Stage

  • OTC INDEX Offering
  • KPI Rewards Program - Early Draft
  • Contributor Rewards Currency Choice
  • Investment Account Strategy
  • Operations Account Financial Forecasting

In Draft

  • Potential Strategic Raise
  • Contributor Token Ownership Plan
  • Investment Account Funding Allocation

How will you interface with the community?

  • Governance Forum Posts
  • Weekly Presentation during Org Work Session Meeting
  • Index Coop account publications
  • #Treasury channel in Discord

Three Main Objectives of TWG

Added 02/04/2021

  • 1 Determining what funds the DAO will allocate to an Investment Account. This is the first step towards preserve & sustain.

  • 2 Begin working to diversify away from being >99% INDEX. This is a combination of creating liquidity via a secondary market and exploring OTC trades.

  • 3 Pending how fast #1 progresses, we will be considering how to implement the Investment Account and what this entails.

Vote:

Let’s create the Treasury Working Group
  • For
  • Against

0 voters

7 Likes
2

Voted For. @Matthew_Graham Has already been doing a fantastic job around treasury management and I would like to see him continue his work as well as continue to Innovate around our treasury. Look forward to seeing the TWG grow and develop.

3

I’ve messaged @Matthew_Graham regarding some changes that might make sense to this proposal and will be helping wherever I can.

Briefly, this working group will need to work closely with the Set team to get any meaningful implementations done while the engineering org continues to build out. I think it makes sense to outline that expected interface (either to the treasury committee or a stakeholder on the Set team directly).

1 Like
4

First of all, great to get going on this. So much to do with treasury - management-wise, productivity-wise, and overall — to ensure Index Coop operations in perpetuity, right! A mixture of sensible stuff, exciting stuff, and existential stuff. And, I think @Matthew_Graham has some of the best understanding of where Coop treasury needs are in this regard.

A question related to this:

This is a big point. If the lead is on/moves onto the Set payroll, then would there also be another Set person onboard? And, moreover, the vote changes from creating a group and a position at $7000/m to just agreeing whether there should be a Treasury Working Group or not. Or would the Lead be on the Set payroll and collect the stipend?

To be clear, I see the group and the roll as necessary and I favour Set involvement. Just, I am trying to get a finer understanding of where the balance of influence will be and what costs will be incurred where.

1 Like
5

Hi @mrvls_brkfst. Thank you for your comment. The post is not worded as well as it could be. Hopefully I can correct it now. I don’t believe anyone from Index Coop would be joining the SET team to do this role, definitely not me at least. What I am trying to convey is that SET has a keen interest in the Treasury. This keen interest may mean that the lead role or co-lead role is filled by a SET person. I’m not sure how it would affect rewards. We’ll have to figure that out and update the post.

6

This problem being addressed here is clear, true, and indeed needs solving :+1:

Slightly tweaking the-above to use my words, The Index Coop does not have a structure in place to manage our finances and so preserve/grow/sustain our treasury

Two quick questions

#1 Budget: does “$5k over 3 months” mean $5K total or $15K total?

#2 What will you be doing: What do you think are the highest 3-4 priorities that you plan to focus on first? [just curious where your brain is at this specific moment]

1 Like
7

This reads great mate :slight_smile:

The intent here is to have some funds for gas. A nominal allowance of $5K total - covering the entire 3 month period.

Based on discussions to date, the three highest prioritise are:

#1 Determining what funds the DAO will allocate to an Investment Account. This is the first step towards preserve & sustain.

#2 Begin working to diversify away from being >99% INDEX. This is a combination of creating liquidity via a secondary market and exploring OTC trades.

#3 Pending how fast #1 progresses, we will be considering how to implement the Investment Account and what this entails.

There will be a couple posts around each topic outlined above.

In the initial posts there are series of other ideas/topics. These topics are at various stages of development and are less urgent. We do intend to keep these items ticking along in the background. KPI rewards, CTOP and Contributor Rewards Currency Choice fall into this category.

1 Like
8

Hi All,

Closing the poll now. It has been a bit over a week and all 14 votes are in favour. I think we can move forward with this now.

Thank you for all those that participated and gave feedback.

3 Likes