[Updated] Community Proposal-05: Initial Treasury Operation Plan

Policy Feb 17, 2022

Context:

  • We have raised a treasury of ~$15million. ~$8.5mil coming from ~170k aCNV sales and ~$6.5mil coming from bbtCNV sale and other sources of funding.
  • Concave CO-OP is running and building with full steam. We are already a big work team (with ~65 contributors) which is also expanding as our vision, foundation and culture are attracting/cultivating many talented individuals to/within our community. This means the Concave CO-OP needs a budget to maintain its day to day operation. The current estimated monthly operation budget is ~$250k-$300k.

Goal:

  • We want to operate the treasury in a way to maximize the value of all CNV token holders while sustaining the longevity of Concave CO-OP.
  • We want to provide the full transparency on how exactly we are planning to operate on our treasury fund in a proactive fashion, so that there will be no surprise at all to the community. ¬†MiaoShi is NOT S**U. MiaoShi is not even part of the multi-sig right now. MiaoShi comes from the community and strives to protect the community's interest.

Proposal on Initial Treasury Operation Plan:

  • Most of the treasury funds will be immediately deployed on stable farming, the portfolio allocation will slowly ramp up to the targeted portfolio allocation defined in Community Proposal-04 as we establish the proof of concept on our portfolio strategies and grow our treasury with our smart bonding machine.
  • We expect to generate ~$200k income per month (conservative estimate) from stable farming currently which covers a majority of the CO-OP expenses. As we efficiently grow our treasury, we aim to cover most/all of our operation expenses with just stable farming.
  • In light of above, you should expect to see ~$250k-$300k outflow from the treasury at the beginning of each month for CO-OP operation expenses, most of which will be covered by stable farming.

I believe the above proposal maximizes the value for token holders through a maximized initial treasury backing/growth base, sustains the longevity of CO-OP operation, and provides community with full transparency on how we plan to use the treasury fund.

FAQ:

Will there be a CO-OP treasury like other protocols (just like the DAO treasury in their sense)?

Yes, it will be set up at launch. A % of bonding revenue will go to the CO-OP treasury (the % will be smaller than the legacy 10% model, I will leave this for a future Community Proposal). The reserves in the CO-OP revenue will be used for community rewards (I will leave this alfa for the community team... I am sure you saw some new roles) and contributor bonus.

Side Alpha: When we are stable farming in the CRV/CVX ecosystem, we plan to auto-compound our rewards in a gas efficient fashion which should further boost our stable farming returns. As a mini-USP, we will be creating an auto-compounding tool for the users for stable farming in the CRV/CVX ecosystem, with a below the market performance fee (e.g. 6.9% vs. market pricing of 10%).

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