Treasury Management (TM)
Last updated
Last updated
The Strategy for the DAO at the outset will revolve around (YG). YG can be defined as the process of deploying capital into instruments that generate a return on said capital. Yield or return is defined as the appreciation in invested capital, after costs of deploying capital to an investment instrument. is calculated as a percentage over initial capital invested and it is time related.
The proceeds from the sale of NFTs as well as the deployment of capital from the DAO Treasury will be under the supervision of 7 individuals, lets refer to this collective as a Board of (BoC). Supervision because no one individual is able to implement any transaction on the blockchain in favor of the DAO, unless there is consensus from the other 6 agents.
These 7 agents will initially be appointed by the development community and subsequently, in later iterations of the DAO, entirely by the DAO community. Facilitated through various media such as Telegram, Discord, Snapshot, etc. These agents will be assigned signing rights to a multi signature wallet, these rights are controlled by the community via the DAO Operational proposal raising mechanism. Essentially these signing rights are assigned through a democratic election process and should the environment shift requiring a change of individual/s, a similar democratic process will be followed to remove and elect alternative agents.
It is envisaged that as the DAO’s grows and it becomes warranted, initially by the development community and subsequently by the DAO community, the DAO should transition to a deployment of capital structure that is represented by the following picture:
The revenue generated from NFT sales will be invested strategically using a shariah framework and sourcing the most appropriate revenue generating assets available within the DeFi ecosystem, including but not limited to investment into Layer 1 Coins, Layer 2 Tokens, Liquidity Provisioning, Other promising blockchain projects. The DAO will utilize 3rd party protocols, in a ‘best of breed’ manner, to achieve its mandated targets.
Medium Term - 2 - 5 Year time frame - focus on liquidity provisioning for YG with a smaller portfolio weighting and a larger weighting amongst Layer 1 coins (eg. BTC, ETH, XRP etc), Layer 2 tokens (eg. MANA, SAND, RNDR, MATIC) and Defi assets (ETH/wETH and/or ETH/sETH in liquidity pools)
An investment committee will be nominated and appointed to oversee these implementations. This committee will consist of members from the management team (development community) and advisory services.
These assets will be held on platforms selected and vetted by Takalabs and appropriate asset management consultants in TradeFi and DeFi.
With the assistance of specialized integrations/protocols/real world asset management entities and assuming that capital preservation is paramount, a conservative and risk averse stance is recommended to the current custodians of the DAO, as well as future governance iterations, the DAO will deploy investment capital using , viz.:
Short Term - 0 - 2 Year time frame - This segment will focus on liquidity and will include a further periodic classification into short, medium and long term investment solutions. A good example of this type of strategy is yield generated through liquidity provision for .
Long term > 5 Year time frame - smaller portfolio weighting in medium term Defi and larger portfolio weighting in .
