We call them poor! Clay!
We Call Them Poor! Clay!
Recently BTC did ATH. So crypto community is naturally happy. To express their happiness, there is a wide variety of memes, gif, and YouTube videos that are posted to celebrate. Recently @clayboyn shared the video below, which I really enjoyed. Clay said he even have it on repeat mode, I did as well! I have forwarded it to bunch of my friends who are crypto illiterate still, hoping they will love/hate it. If nothing else, I will rub it in, eh?
Can we talk treasury? Clay
Dude, you are a friend, so I hope you give me a bit of a leeway, you know I am not putting you on the spot personally. However, we as a community should have a conversation and a record, so that it doesn't get lost in discord. With that disclaimer; lets begin!
There are currently multiple DAO proposals on the docket that is requesting funds from the DAO in stablecoins. This last bit is critical stablecoins. The reason it is critical is because if we do not have stablecoins, we have to sell some other assets to raise stablecoins.
- $200K by Splinterlands
- $350K by Dejota, also going to Splinterlands
- $2.5M by soy-misterioso, for exchange listing
Let us forget about the $2.5M big enchilada for a second, but the other two are essentially people's salary in one way or another. If I add the first two up I get $550K total in stablecoin.
Now let us look at what we have! This is the latest DAO treasury report
Pardon my rounding, but if I add the three numbers I marked in arrow, I get $181K + $150K + $230K = $561K
Mind you Clay, we must pay your salary from this as well! So we have a immediate request of $550K and we have $561K. I say we are POOR! :)
Also, I was recently talking to @asgarth and he said "The way I see it the USD amount attached to that report is a joke. The DAO barely own 3mln USD, not 9.5mln"....well I will let others to interpret that comment, but personally I agree with him.
This is what we need Clay!
We need some budget and cost projections from you. Clearly we do not have the money to fund these proposal by stables. So, yeah you guessed it, we need some asset sale, likely DEC. Must be at/near peg (which is not always a given, currently we are not at peg). That will be a proposal and will be rather eye opening for many who think DAO holds $10M.
Rude awakening, bitches!! (this bit is for cyberblock, pardon my french!)
Once that is out of way, we need a earning projection for the DAO. Please get with Matt to estimate that. Potential earning coming from pack sale and any future possibility of revenue for the DAO. A waterfall chart would be nice to visualize.
Bottomline: before we write and expect to fund proposal-after-proposal, please let us think where the money is going to come from.
I think it has gotten a little out of hand these proposals lately. I understand that is probably part and parcel for a DAO like this, but when they throw six or seven at you all at once, it can get a bit tiresome. I have a feeling people aren't even reading them they are just blindly voting because it's too much work.
Some of the LP ones are along those lines for sure
I read the first LP Prop - but after that, I feel the rest are mostly explained in the title...
Just my thinking but yeah, seeing 2,3,4 Props at one time can be a bit much... but that's part of it I guess
this is true
Of course
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Thanks for sharing this. I just saw that 2.5 million proposal. I find it crazy that he states below it won't bankrupt the DAO when it's going to cost almost the whole treasury to do. And to correct you, if I'm not wrong after reading it, it seems like it's actually 3 milllion, 500k for market maker and 2.5m for pursuing a binance listing.
Yeah. Agree, at current prices the exchange proposal will bankrupt the DAO therefore we have included a price clause in there. So I am not even considering it. I think the other "salary proposals" will put a major dent in the DAO if passed
Thank you for the thorough processing!
You are welcome
We need more of Clay’s work
Nice update!
As I suggested yesterday, we need to figure out and act on exit strategies for our DEC positions. We've raised this point many times, but if the DAO is being paid in DEC it has 2 options: Burn the DEC or sell it.
Dave said he wants to help with figuring out a budget, my concern there is that a budget is kind of pointless if we just change it all the time with new proposals, but we'll see what we can do there. I'll get a draft of a reasonably safe way to offload small amounts of DEC on a regular basis put together and start that conversation today.
That sounds good. We have to sale at least some DEC at peg.
Even with that we are in no position to fund all these proposal financially as asked. We simply do not have the money.
Well the easiest cut there is the promo card sale. Matt seems to think they can make more money selling the cards outright, I say let them.
I say let them!
Amen!
The best kind of awakening 😀😀
LOL! I am always certain that you will get it Boomy:)
I thought you might also like the opening song:)
Heh heh, I did indeed... We call them poor... 😀😀
I think a few months back, some were suggesting in Discord that the DAO needs to find ways to make money, but others shot that down. I guess when we look at it this way, we really do need more funds. All these high cost proposals are not really helping.
There is no simple way for the DAO to make money. DAO can't trade successfully. It is a holding company, not a hedge fund.
Yeah, I agree. I wasn't even suggesting the DAO tries to trade, since there's too much risk. I was thinking more along the lines of putting some of the assets in our own LPs. The DEC:SPS pool seems relatively safe since both are SPL assets anyways. Since the bull market is coming up/ongoing, we can convert a few tokens that will moon to HBD and park it in Hive Savings to earn some interest. I think some of the problem was the large amount of funds they want to allocate. Even a small amount can go a long way. For those that don't want the DAO to earn, the earnings can be used to buy SPS and burn it when DEC is at peg, then burn the DEC as well. I think it is just a shame that a lot of the funds are just sitting there. We can also rework our NFTY arcade setup, and just take a 5 percent share. The DAO can also rent out SPS.
TLDR: I had a quick search online, and Holding companies still earn money. Dividends from subsidiaries [maybe LP equivalent], leasing assets and equipment [rent out cards and SPS].
Rude awakening makes the awakening a lot more effective...
This shouldn't be as funny as it is😂😭
Its ironic isn't it:)
This is the reason real financial market do not still care for crypto, because we are relatively POOR!
Tough..
This is excellent perspective, thaks for sharing this Jimmy!!
Even more reason not to burn $200K from the DAO for the upcoming promo. Let the company make and (hopefully) sell the promo cards and generate revenue from it. Win/win if they market it and price it properly, as opposed to draining very limited DAO funds simply to burn SPL tokens.
yes, agree 100%. Will vote no to that proposal.
I'm surprised the treasury report page only has 53 followers on Hive. It's a good report. 0 comments either on the last post 3 days ago. All the arguments around how best to manage the resources must be on Discord?
yes, SL community mostly talk on discord