Thanks for the input Greg. To answer the questions first off:
- Mainly because the ETH can be used to expand the smart treasury in the future as that will be an Index/ETH pool, the fact that it has demonstrably lower volatility is a bonus. If INDEX gains against ETH from here that’s great, if it falls, we are hedged. It’s true that stablecoins would offer even lower volatility but if they lose purchasing power against ETH we would need to sell more INDEX in future possibly at less favourable INDEX prices.
- $200k represents less than 1% of the dollar value of the treasury at today’s valuations. Deciding between $150k or $250k is the difference between +/- 0.2% of our treasury. It doesn’t seem value add to have further discussion around every detail of the proposal, but I’ll expand more on that below.
- A mixture of OTC and market selling is the plan as I mentioned in the response to Richard.
As the treasury committee we have some discretion to take actions that benefit the Coop, as laid out in this post.
If the community feels that we are not being sensible with this proposal then that is the purpose of the poll, to gauge the sentiment and make sure we haven’t misjudged things. When it comes to deciding on the asset and the allocation however it doesn’t seem to be a value add activity to decide the parameters by community vote. We have the treasury committee (and other working groups) to make these decisions and lay out the case. It feels like we should be defaulting these decisions to yes and the community can step in to say no, rather than default no and having to get buy-in for everything. Governance minimisation and empowering those in positions of responsibility, while avoiding decision by committee on detailed aspects will help us to move quickly while still having the sanity check to ensure sensibility.