Summary
FloorDAO requires a much larger userbase in order to achieve its intended, long-term goals of deep liquidity, sustainable yields, treasury appreciation, and market visibility.
Given the limited size and scope of the current treasury holdings (~16m USD), “blue-chip” NFTs such as BAYC/MAYC can only be acquired in small batches, providing limited growth and upside prospects for the protocol.
Motivation
Caution is good, however the “slow and steady” approach, will not prove viable for such an early stage project. Governance is broadly inefficient in its current state, offering far too much resistance, yet far too little flexibility for effective treasury management. Decisions on collections already take weeks, if not months to be approved, and only one project at a time.
Proposal
FloorDAO onboards hundreds of new users with targeted bonds for “non blue-chip” collections, ideally with high levels of NFTx adoption, volume and yield generation. These communities will also tend to be more familiar with DeFi mechanics and Ohm treasury models than “blue-chip” collectors.
Specifically, there are 2 NFTx collections that fit these requirements particularly well: Milady Maker & Tubby Cats. Please read the respective reports before voting on this proposal.
Milady Research Report: FloorDAO - Milady Maker Research Report - Google Docs
Tubby Research Report: FloorDAO - Tubby Cats Research Report - Google Docs
Specifics
FloorDAO will aim to acquire 2.5% of the Milady Maker and Tubby Cats collection as a permanent holding among its treasury assets. In this case, 250 Miladys and 500 Tubbies are the target quantities.
The cost of these acquisition will likely range between 100-150 ETH for Milady Maker, and 200-300 ETH for Tubby Cats. In total, 300-450 ETH would be required to purchase 2.5% of both collections.
Given the smaller valuations of these projects compared to Punks/BAYC, more aggressive bonding discounts can also be proposed with reduced strain on the treasury. 10-30% discounts on these bonds would likely result in a deadweight loss of <100 Eth, and effectively onboard those communities onto FloorDAO’s active userbase.
Polling Period
Preferably, the polling process will begin in a couple days after the proposal/reports are read by gFloor voters. I propose a one week period from 2022-04-08T16:00:00Z→2022-04-15T16:01:00Z EST
Requesting admin approval for a binary yes/no vote regarding the outlined terms of this proposal. There is sufficient information in this post for all gFloor holders to make a reasonably well-informed decision, so let’s not take months to get this through the pipeline. There is no need.
- Yes. FIP#8 passes and FloorDAO proceeds with 2.5% of Milady & Tubby acquisition.
- No. FloorDAO treasury declines to include Tubby & Milady in their holdings.
0 voters
