[DCP-18] Strategic Treasury Diversification and Partnership Engagement

[dragos]

UPDATE: The Snapshot Proposal has passed with 92.2% in Agreement.
The team will works executing the Proposal and keep the community updated.

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Summary

To ensure the long-term sustainability and growth of the DappRadar DAO, it is important that we diversify our treasury. By thoughtfully diversifying, we can create the liquidity necessary to fund the near-term operations of the DAO, stabilize our financial standing and pave the way for reaching our goal of becoming the world’s community-owned Dapp Store. This proposal is drafted in the spirit of transparency, laying out our intentions clearly to our community.

Proposal

Allocate up to 500,000,000 RADAR (5% of supply) from the DAO’s treasury for diversification through OTC sales to strategic partners and the implementation of an algorithmic treasury management program.

Motivation

As DappRadar moves forward on its path toward decentralization, an increasing amount of the platform’s activities and associated expenses will move to the DAO. Diversification of the treasury will provide the DAO with greater resilience against market volatility and enable a more flexible approach to funding operations and initiatives.

Engaging with strategic partners via OTC sales minimizes market disruptions and ensures that the DAO tokens are in the hands of stakeholders who share the same long-term vision. These partners can provide more than just capital; they can offer expertise, connections, and opportunities for collaboration. By implementing an algorithmic treasury management program that conducts native token sales based on volume, we will enhance liquidity management, reduce price impact, and diversify risk.

Abstract

As we shift towards the DAO model at DappRadar, there will be both DAO-native revenues and costs. Our workstream model means that we will steadily be operating directly from the DAO rather than our previous centralized entity. It is important that the DAO is resourced to deal with the increased operational costs. The DAO has allocated 24.75% of the Treasury to fund initiatives such as platform development, operational costs and partnerships.

Building upon the transparency standards being executed by other DAOs (IDLE DAO, Badger DAO, Lido DAO), we are looking for the community to buy in on its treasury diversification and strategic partnership strategy.

The DAO will seek to achieve mutually favorable terms with the strategic partners in various verticals including CEXs, chains, wallets and web3-native VCs. With DappRadar’s prowess in the distribution of user, data and insights, we will ensure alignment with the future short and long-term goals of the DAO.

Utilization of the Raised Funds

The funds raised from these sales will be directed towards the following key areas:

1. Fund DAO Operations: As we shift towards our Workstream operational model, these funds will ensure that the day-to-day operations of the DAO continue smoothly, supporting projects, proposals, and necessary administrative tasks. This will also include the future operational costs that the DAO will pay to utilize the infrastructure and intellectual property built and maintained by the DappRadar Core team.

2. Accelerate Decentralization: Invest in initiatives and infrastructure that move us closer to a fully decentralized model, furthering trust and participation from our community.

3. Web3 Native Product Development: Boost the research and development of Web3 native and RADAR integrated products that strengthen the position of DappRadar DAO as a destination for Web3 discovery and accessible data and insights to aid web3 investments. This includes reimbursing the DappRadar Core team and contractors for the previous DAO and RADAR initiatives and products that have been built since inception.

4. Talent Acquisition: Attract, retain, and reward critical talent, ensuring that our DAO has the human resources necessary to drive our mission forward.

5. Scale Marketing Operations: Expand our reach, recognition, and reputation by scaling up marketing endeavors, driving increased usage of DappRadar products, and community growth.

Conclusion

This proposal seeks to fortify DappRadar DAO’s financial position, promote our growth, and solidify our commitment to becoming the world’s, community owned, dapp store. We believe that with the collective approval and support of our community, we can achieve a bright decentralized future together.

We invite the community to discuss, debate, and provide feedback on this proposal, ensuring that our next steps resonate with our shared vision.

Benefits

1. Operational resilience: Diversifying the treasury will offer a buffer against market volatility, ensuring steady funding for the DAO’s operations without being overly reliant on the value of a single asset.

2. Strategic partnerships: Engaging with strategic partners can bring in not just funds, but also expertise, connections, and collaboration opportunities that can further the DAO’s mission.

3. Enhanced reputation: By following transparency standards executed by other esteemed DAOs, DappRadar will gain increased trust and credibility in the community and will attract even more partners and RADAR holders long term.

4. Future growth: The allocated funds will catalyze Web3 product development, talent acquisition, and marketing operations, positioning DappRadar DAO for robust future growth.

Drawbacks

1. Increased token circulation: Distributing RADAR tokens to partners may lead to market concerns regarding an uptick in token circulation over the next 2-3 years.

2. Governance complexity: Incorporating major partners into the fold can introduce complexities in DAO governance. Their potential influence could make consensus-building intricate, but it aligns with our mission of decentralization and offers opportunities for growth.

3. Bear market challenges: Treasury management during less favorable market conditions can be strenuous. It’s essential to ensure the DAO’s operational continuity and preparedness for subsequent market upswings.

Vote

• AGREE: Allocate up to 500,000,000 RADAR (5% of supply) for the treasury diversification strategy
• DISAGREE: Do not allocate RADAR for this treasury diversification strategy

[jojo]

This is big.

I fully support it. It will be an important step that helps us get closer to the vision “the world’s dapp store”.

Regarding to the disadvantage, why would that be a shortcoming when more RADAR token is coming to the market？ I understand the price fluctuation but now i see it would be an issue there is too little RADAR token in the market, but not too much.

Carefully choose the partner.

Firmly head to a decentralized future!

[madeafterdeath]

I want us to work on improving Radar making a income first for the DAO the out going to start with need to be minimum be nice if we had a dex up and running to instantly start with a source of income coming to dappradar and i suggest we use this funding to build one as well as try and do the above stuff while working on the dex being built the dex its self will be DAO owned so we will have to make the deal ect build liquidity pools have a reason to hold multiple votes a week. We can also set fees to what we want and expect while building the treasury we have alot more control over everything with something like this as well as the power to grow more and expand upgrade into the future i want the treasury building not shrinking. I expect the start to be more out goings than in coming that’s why i want the dex as soon as possible.

The radar token isnt on the market as such its in the DAO treasury and shrinking due to costs of hiring so we need to change that fast =) (im not looking for a quick pump and dump with no utility attached to it is another thing im saying)

Who knows in future we may even be able to add liquidity from the treasury (if it builds up enough) to other pools start helping projects get off there feet. as well as exposure and detailed reports on the said projects.

[bayar]

This is an important step in the process of progressive decentralization. The biggest benefit that I see (apart from the immediate benefit of liquidity and flaxibility) is the strategic partnerships.

Those partnerships should bring diversified expertise into the DappRadar ecosystem, as well as enable the development of new products, services and collaborations at a whole new scale, whilst at the same time confirming the vision of the DAO of building a community owned dapp store.

I’m very much looking forward to implementing this proposal; it’s a huge step forward for DappRadar!

[jojo]

Fully agreed.

Since the bull market is coming along with the bitcoin decrease in 2024, it is critical that we seize the trend and provide clear proposition and solid value to the crypto industry. And then we shall win our position in the industry.

[nederob]

This proposal is for 5% of the supply. Even if that would all end up in the hands of one major player, it would still just be 5%. Getting funding with a small portion of the supply during a bear market, I think that’s a very good move. And - if needed - we could always do another 5% during bull market. Furthermore, those who raise money during the depths of the bear market, really have TRUE believers behind them.

I’d rather want 3 true believers, than 10 investors who throw money around and hope it sticks. (the way I generally “invest”)

At the moment a strong portion of the governance is in the hands of DappRadar (the centralized entity) employees. I would not look at it as complexity, but diversifying opinions and ideas. I actually think this will be a very healthy process, and will do the platform lots of good.

Overall, my blessing! And I will start writing proposals for marketing. Anybody wants to help / brainstorm?

[madeafterdeath]

if there’s ideas to be thrown about rob u know I’m always up for brainstorming doesn’t matter what the subject is about =) and i agree logging into governance today and seeing 4 notifications was nice.

I was thinking other day we could stick some on binance possibly? its something people have asked for quiet a bit. and still number 1 exchange in world. (will make the traders happier and we are on the bnb chain as well) dont know how listing tokens on a exchange goes like that tho.

[jojo]

sure！count me in！
(i m another kind of true believer who did not sell much RADAR in OKX wave )

[nederob]

AFAIK a listing on Binance costs a shit ton. I reckon we first need to implement the utility for RADAR fully, before spending for such a listing. In addition, I wouldn’t mind if our biggest market will become DEXs. It would be in line with the Web3 ethos and powers our dapp spirit

[madeafterdeath]

then we should be totally making are own dex while gathering other dexs for partnerships (see if theres any good ones) and if possible and the DAOS can work together we can work out a eco system between us all but that will take some massive planning. id much prefer to work on radars eco system to start with, also ape swap lowered all there APYS across the board i noticed that recently which is nice best one i noticed now is a 79% for Golden bananas, Shame about the cost of listing on binance we can forget about it then till like u said we get other stuff up and running and if all goes well we might not even have to bother listing it.

I know i talked alot of crap about apeswap in past but recently going on there noticed they lowered the APYS across the board by alot which is Really good means they have a chance of there token not going to 0.0000000001 best apy they had was a 79% for golden bananas <–this i feel is high but fair they legit took the biggest risks on that platform as well as anyone doing bills. I dont know if we still partners with them but if we are possible do more with them in future we also need to be really careful of which dexs we list on cuz 1000’s come and go in space of a couple of years.

With the dexs coming and going like that tho again radar would be something perma and people could really back it without too much fear cuz i don’t want us to be greedy and i feel key members in are community also dont want to be greedy they want it too grown maturely which is something nice to see.

[vandynathan]

UPDATE

After passing the quorum on the DAO Forum, we are live with the Snapshot vote

You’ve got two more days to vote $RADAR community.

[dragos]

If you’re concerned about the increase in circulating supply, don’t be. Tokens from any OTC sale will have vesting periods, so they won’t be on the market right away. We’re doing this to attract more partners, giving the DAO the firepower it needs to become the main player in the DappRadar ecosystem and continue the decentralization process.