Vote 010: Gro DAO Treasury Management Committee

Background

Following the discussions around treasury allocations in this community post the core team has realised that votes for allocations to smaller protocols take time for discussion and due diligence. In addition, to extract maximum value for Gro protocol by securing mutual deposits into Gro in return for a deposit into their protocol, more time is needed for negotiations and discussions.

Because of this time required to execute there is still a large portion of the treasury which remains unallocated (~10m USDC) which could conservatively be earning enough to contribute significantly to the operating costs of the protocol. The treasury has also not been able to act decisively to buy the dip and stock up on useful protocol assets recently (e.g. ETH at $2,200 and AVAX at $60).

Proposal: set up a Gro Treasury Committee with agreed whitelist principles

We propose that a Gro Treasury Committee is set up to handle the Gro DAO treasury finances, with an agreed set of whitelist principles voted on by the DAO.

The purpose of the committee is to execute on pre-agreed (‘whitelisted’) treasury deployments quickly. It can then spend the time needed on due diligence and negotiations, submit proposals to the DAO for voting, and instruct the DAO multi-sig to act on those instructions.

Agreed whitelist principles

In the interest of moving swiftly and with agility, we propose that certain ‘blue chip’ DeFi whitelisted protocols, meaning that no further DAO vote would be needed to move funds into these protocols.

In addition, we propose that there are certain whitelisted assets: meaning that the Treasury Management Committee can (by instructing the DAO multi-sig) acquire those assets using treasury funds without further DAO instruction.

Finally there we propose whitelisted transactions. This is to allow swift action to be taken for emergency reasons, or smaller transactions to happen without a vote.

Proposed whitelisted protocols

  • Aave
  • Compound
  • Curve
  • Lido Finance
  • Gro

Proposed whitelisted assets

  • USDC
  • USDT
  • DAI
  • ETH
  • AVAX

Proposed whitelisted transactions

  • Any return of funds back to the Gro DAO treasury
  • Any investment in a protocol up to $100,000 value

Who would be part of the Gro Treasury Committee?

The Gro Treasury Committee would initially be made up of the following individuals from the core team:

The core team welcomes applications from other members of the Gro community - please reply to this thread if you are interested in joining the Gro Treasury Committee.

In your reply, please introduce yourself, provide details about your experience in the DeFi world to date (including any experience in managing DAO funds or large DeFi portfolios), and motivation for being part of the Gro Treasury Committee.

Ideally the Committee would have at least one member who is not part of the core team.

Re-election and removal or addition of members

We propose that the Gro Treasury Committee be re-elected every 12 months, subject to a governance proposal on who should form part of the Committee.

If there is a desire from the community (shown via a forum post and a positive indicative poll) or from the core team to add or remove Committee members within less than 12 months, then there can be a new governance vote to change the Committee (by adding, removing or substituting members).

Remuneration

To reflect the time spent by contributors, the Gro Treasury Committee should be remunerated for their time involved in advancing the Gro ecosystem. We propose that each Committee member receive 500 $GRO per month from the Gro DAO Treasury for their time and effort (each monthly token amount delivered as an airdrop vesting for 12 months in the rewards centre).

For any core team member who already has an allocation of $GRO as part of the team allocation set out in the $GRO tokenomics, this monthly amount will be considered already included in their existing allocation i.e. core team members will not get additional $GRO for their role on the Committee.

The expected time commitment is 5-10 hours per month but this is subject to change.

Next steps

This proposal will be left open for the community to discuss for 7 days. Please indicate using the poll below if you are in favour of this proposal.

If there is support for this proposal, the core team will launch a Snapshot vote at https://vote.gro.xyz which will remain live for a further 7 days. If there are comments to update the proposal (e.g. with community Committee members), a new version of the proposal will be posted in the forum for at least 2 days before the vote.

Should we establish a Gro Treasury Committee?

  • Yes
  • No

0 voters

Just putting my hands here that I’d be interested to at least be in a trial run as a committee member and grow alongside the community :raised_hands:

2 Likes

That’s great to hear @Slacking , we would love to have you as part of the Committee based on all your thoughtful and detailed feedback to Gro so far :purple_heart:

Any others please let us know!

Would be glad to contribute my share of thoughts here as well.

2 Likes

Thanks @pavel

Then I think we had interest from @mjohanm4 on discord as well. If you’re interested @mjohanm4 please could you confirm here?

Treasury Committee governance process

Ultimately it should be up to the Committee to design their own operating principles, and we suggest that this fact is included in the vote. That would include changing the design or the size of the committee, if there was majority consent to do so.

However as an initial set of principles we think something like the following (in addition to what is set out in the post above):

Proposed operating principles

  • Committee made up of 5 members to start with, including a mix of DAO members from the core team and from the community
  • Meet 1x per month plus ad hoc meeting as necessary; ongoing discord channel also
  • Function: Deliver instructions to the DAO to manage the Gro DAO Treasury
  • Monthly Agenda:
    • What are the current investments; performance this month
    • Discuss new whitelist investments
    • Discuss new non-whitelist investments
    • Deliver instructions to DAO
  • Specific tasks:
    • Dashboard analytics
    • Meeting preparation
    • Discussions / negotiations with other protocols
    • Prepare community posts and DAO votes for non-whitelist investments
2 Likes

:mega: Final call for Treasury Committee applicants :mega:

Vote going live tomorrow! If you’d like to be included in the proposal please post your name and reasons below.

We will clarify in the vote that the Treasury Committee is doing the typical treasury function equivalent in a company i.e. it is deciding how to invest excess USDC, and not making decisions as to operational spending (that will be clarified in a future DAO vote).

Happy to help definitely interested

Also imo in the future a financial institution of this scale, especially projecting future growth of the treasury, is in need of more rigorous frameworks and tools to back up and steer such decisions, specifically tools for modelling (risk profiling) and simulations (alternative scenarios/portfolios).

For one, I’m working on a tool for protocol analysis in the vein of what Gauntlet is doing, but based on a set of DeFi-native premises:

  1. Gauntlet is running their simulations with agent-based models representing users interacting with a protocol. A model of a user is based on a set of theoretical assumptions about user behaviour patterns. This approach was developed for TradFi, where the bulk of real life data is either not digitised at all (much of the b2c interaction happens offline) or isn’t available (much of market data is private). Hence, agent-based modelling with theoretical assumptions about incomplete data is justifiable. However, for DeFi agent-based modelling is a suboptimal legacy framework. Since all data about transactions and user interactions with the protocol is open and available for modelling, we can learn from real life data a model of a living protocol, or parts of it, and models of user interactions with it. Moreover, this model will be continuously fine-tuned with new data emerging.
  2. Transactions model is only half of the story. The other half is community sentiment manifested on twitter, discord and discourse. In the offline economy inflation expectations and consumer sentiment influence consumer behaviour and central banks of the world gauge it with polls, when modelling national economies. In DeFi we have the luxury to model community sentiment not with approximating polls, but again with real life data, while constantly fine-tuning the model.

This

is part of it.

We can learn from real life data models of onchain activity & that of community sentiment and then merge them to get a true-to-life DeFi-native model of a protocol, which can be constantly fine-tuned.

Then it can be used to build tools for explorable + explainable DeFi: protocol risk exploration and profiling, running stress tests and alternative scenarios, classifying protocols and tokens, detecting user behaviour patterns, making forecasts about certain protocol KPIs like TVL and that of partnering protocols.

1 Like

Great proposal Charlie. How about taking this proposal to next level. In traditional company if I was the owner, I’ll want to have atleast 12 month of cash reserve spare with me. For eg. lets say GRO DAO can sustain itself for $1 MM for 24 months, this means that we are underutilizing our $9 MM treasury. So now we have the decision to allocate this $9MM treasury. How about we use this as an opportunity to attract more people to the GRO community.

For eg. we can make a team (2-3) of voluntary traders who’ll decide when to enter/exit top 20 crypto positions. We can make this a 2 month epoch. The traders will be compensated with 10% of return they achieve. Traders won’t have multisig wallet access. These are not leveraged positions and will mostly be swing trades. Crypto community has a lot of traders and this unique opportunity will soon intrigue many once first epoch ends. This is just general idea, it can be modified in a lot of ways, but this ensures that treasury amount is adequately utilized. No leverage + good traders mean you can really expect some high returns + staking current position in some defi protocol is also an option. Just food for thought.

1 Like

I am happy to vote for the community proposals here, and I will use my skills below to make some contributions to the community, as I am a video enthusiast. :slightly_smiling_face:

1 Like