TLDR: It’s cold outside and we need a solution to keep our crops green.
As a bear winter may be upon us, it’s important that MetaCartel considers a sustainability strategy to not only survive the winter, but to enable the Cartel to continue creating positive impact long after. While ETH may rise again tomorrow, there’s also a good chance it could be in a decline for the next few years, and the MC treasury should be managed accordingly.
There has been debate over the last couple of months on what the best strategy would be in regards to financial and ideological alignment. The purpose of this proposal is to outline the different strategies that were captured during MC Townhall discussions and give space for members to deliberate.
There are currently a several strategies being explored around generating yield from DeFi activities to sustain the MC grants program. They are being discussed in a telegram group geared specifically towards treasury sustainability strategies for DAOs. Calls are held every Tuesday, directly after MC Townhall.
MC stakes some of the ETH from the treasury to earn yield.
Perform a raise in ETH to then stake for yield.
MC borrows ETH from frens to stake and earn yield with promise of returning the ETH.
Perform a raise in DAI to then stake for yield.
MC borrows DAI from frens to stake and earn yield with promise of returning ETH.
MC borrows ETH and DAI from frens to stake and earn yield with promise of returning ETH.
- The goal is to earn enough yield to support 2-3 $10k grants + ops per month.
- Whether MC raises or borrows, a Yeeter would be used to streamline the process, with the funds being managed by a DAO comprised of a treasury council to manage DeFi activities.
- The yield bearing tokens can be deposited back into the DAO treasury where capital contributors can exit with their proportion at anytime.
Start a sponsorship program is to find larger organizations that are or want to be aligned with the MetaCartel, and are willing to contribute capital towards the MC grants program.
Sponsors tribute ETH to the MC DAO to receive Loot. Give benefits to Loot holders.
Sponsors send ETH directly to the treasury without receiving Loot and associated benefits.
- A Yeeter is used to collect Loot sponsorships.
- Loot holders can receive an NFT and Discord access to Townhall & grants program.
- unengaged sponsors give money and only get listed on our website.
- MC would need a role to manage the sponsorship program
Restimulate the MC membership program.
Promote MC memberships publicly to generate more membership tributes in the form of ETH.
Collect an annual membership fee from new and existing members.
- Membership tributes and reoccurring fees could be in the form of NFT sales.
- NFT sales could be facilitated by a DAOgroni style solution.
- OR tributes/fees could simply be paid in ETH directly to MC treasury.
- MC would need a role to manage the membership program.
MetaCartel is a public good and therefore should be supported as such. Raises can be framed as donations to support MC grants.
Leverage existing public goods fundraising platforms to replenish the MC treasury.
Periodically perform public goods donation events directly with the MC DAO.
- MC can use platforms like Gitcoin to raise and gain exposure.
- A Yeeter can be used (similar to Strategy 1) to collect donations.
- MC would need a role to manage the public goods program.
All of these strategies have their pros and cons. They are also not exclusive - multiple strategies could run in parallel. It’s important to consider the operational overhead of these strategies along with the associated risk inherent to each of them. Use this space to discuss the above listed strategies, offer thoughts and opinions, introduce different or modified strategies, and come to general consensus on the best path forward.
The new MetaCartel website is projected to be completed by July 2022. MC members should come to consensus before the launch of the website so that the chosen strategy can be incorporated into the new site and grants onboarding flow.