The diversification event at the end of 2021 was a great success, enabling us to build a robust treasury of almost $8mm USDC. This provided funding for the next phase of growth for the DAO (including the well-time floor sweep!) and has also acted to provide stability to the value of the organization. However, we think it’s important to be thoughtful about how our treasury assets are allocated, and as a first step, propose swapping 25% of the treasury’s USDC to ETH.
The timing is right for this swap. Our treasury diversification snapshot vote passed when ETH was above $4,500. ETH is now trading at $2,800. So our purchasing power has increased substantially over the past two months.
In terms of strategic rationale, there are two main drivers:
- Maintaining some exposure to ETH allows us to further participate in the value creation of Web3 as a whole
- We will inevitably incur expenses denominated in ETH, and this will allow us to better match our assets to those expenses
This leaves 75% of the remaining value of the treasury in USDC, which should still provide sufficient stability to the organization.
Successfully swapping 25% of our USDC to ETH.
Genesis Multi Sig will utilize the Gnosis Uniswap app to execute the swap.
Genesis Multi Sig holders will execute this swap at their discretion.