Looking at the first SPS DAO Treasury Report

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Splinterlands (Matt) published yesterday a situation of the current holdings of the SPS DAO, or as he called it, the SPS DAO Treasury Report.

The treasury currently holds assets in three wallets across four platforms (in-game, Hive Engine, Ethereum, and BNB Smart Chain)

As we were able to find out from the report, the DAO holds significant amounts of stablecoins, ETH, BNB, and HIVE, besides SPS.

This is a screenshot from the report:

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The fact that is worth noting is that the DAO doesn't take SPS rewards for providing liquidity to different pools that are incentivized with SPS. I assume they take transaction fees, though, even on Hive-Engine.

Another interesting fact to notice is that the DAO's positions on PancakeSwap and Uniswap (SPS-BNB and SPS-ETH) also generate transaction fees that should increase those positions over time.

Regarding HIVE the report talks about, it is held as SWAP.HIVE on Hive-Engine. Currently not used in any way.

Stablecoins from the report are on Ethereum (USC and USDT, mainly) and on BSC (BUSD). They are also in wallets.

I believe this report is a great exercise of transparency. And at the same time, a signal that the DAO stakeholders should take on some of the responsibility for deciding the future of the DAO's funding.

There are different directions where we could look:

  • SPS rewards - should the DAO have more SPS rewards? It "currently holds roughly 13% of all SPS in circulation and roughly 26% of all liquid SPS."
  • stablecoins - should the DAO earn something off them (stable LP on a big platform?), keep them like they are, or take a more risky approach with part of them (like buying bitcoin)
  • SWAP.HIVE - how should the DAO best use it? I've seen the idea to swap it to HBD and put it into savings, and with the interest, buy DEC; the question is: what if HIVE grows by more than 20% in a year - it already grew by 64% since 25 cents in a month)
  • we also have to keep in mind the DAO treasury will receive some DEC if future mini-editions will have the price set in DEC
  • the treasury also receives VOUCHERs (and GLX+GLGT tokens) as a reward for staking 2m SPS
  • DAO treasury also has over 15000 RIFT (Riftwatchers tokens); can these be put to good use?

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sps-dao-report dao-funding splinterlands hive spt hive-engine proofofbrain ctp leofinance
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13 comments
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I think the should get some bitcoin as a priority

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Maybe. The question is why did they amass stablecoins? Because it was the best thing to do during the bear market? Because they are thinking of them as a buffer for expenses that are denominated in USD (server costs, for example?). The question is, when DAO becomes fully functional, do they expect it to partially pay for server costs or those funds will continue to be provided by their sales of packs?

During the bull market, buying some bitcoin with some stablecoins shouldn't be a bad move, unless these stables have a specific purpose.

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Great points Adrian. My thoughts were that it would be good to have Bitcoin more than holding ETH, but the stables for future costs can also make sense.

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It's an interesting list but all decisions will have some type of advantage/disadvantage. I think it's best for them to just continue as they have and I don't really think there is a need to change anything.

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I think they want the stakeholders involved, to not bear the responsibility of managing the DAO funds by themselves. The problem is to come to a beneficial consensus for the DAO, investors, the game economy, and the company.

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They may use hive for curation?

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(Edited)

That means to power up HIVE. That's a big decision. Keep it liquid versus having a 13-week power-down lockdown period for 8-10% APR + 2.5% interest.

I believe if we are going to use it this way, diesel pools may be a better way, although that means a lower APR for existing LPs.

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I not sure how long more the bear market will continue. Having some stable coins as anchor is not a bad thing.

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(Edited)

January surely didn't look like a bear market. I am curious about what February will look like.

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