[RFC] Treasury Diversification for Ongoing Expenses

This RFC is made with the same goals as the original [RFC] Treasury Diversification. Updated parameters are below.

Summary

Sell 25% of Hop DAO’s ARB holdings (209,251 ARB) for USDC. This should raise approximately $440k for Hop DAO at current prices (~$2.10).

Motivation

Hop DAO will need stablecoins to cover ongoing expenses. The current and future ongoing expenses that currently exist are:

Execution

The onchain execution of the proposal will send a message through the Arbitrum messenger to trigger a transfer of the ARB currently in the Hop Treasury alias address to the Community Multisig. The Community Multisig can then complete the sale in a series of transactions.

Voting Options

  • Sell 25% of Hop DAO’s ARB holdings for USDC
  • No action
  • Abstain
6 Likes

Not an expert at financial management but at this point in the market I think that diversifying 25% of ARB is probably a good idea. Voting in favour

2 Likes

The below response reflects the views of L2BEAT’s governance team, composed of @kaereste and @Sinkas, and it’s based on the combined research, fact-checking, and ideation of the two.

We had supported the previous proposal for treasury diversification and we’re also supportive of the current proposal. With the recent price increase in ARB and the overall strength of the market, we think it’s a good spot to sell some of the treasury’s holdings to be able to cover ongoing expenses.

However, as we pointed out during the last vote as well, it might be worth investing some time and effort in creating a more holistic approach to treasury management.

3 Likes

We agree with the above sentiment of spending more time creating a holistic and strategic approach to treasury management, and we would like to see a more detailed breakdown of the funding for future proposals. We also feel the title of this proposal could be more explicit in being a treasury “liquidation & disbursement” instead of simply a “diversification”. However, we will support the initiative and the approach this time around.

The below response reflects the views of L2BEAT’s governance team, composed of @kaereste and @Sinkas, and it’s based on the combined research, fact-checking, and ideation of the two.

We’ve already expressed our support during temp-check and since nothing has changed in the proposal since, we’ll be voting in its favor during the on-chain vote as well.
One thing we’d like to follow up on is our wish, which was also echoed by @she256, to create a more holistic approach to treasury management and not just sporadically sell assets to cover expenses at arbitrary times.

Following the last community call on 6.3.2024, we’re happy to know that @0xLev1 is working on an initiative on that front which we’re happy to support.

Hi everyone, don’t forget to vote on the tally on-chain vote for this proposal. @lefterisjp @dybsy @Bob-Rossi @she256 @takeabreath @rxpwnz and everyone else that still hasn’t voted.

Retroactively commenting: I voted “For” this proposal in order to keep the upcoming expenses in stables then the more volatile ARB token. Look forward to the discussions for a more comprehensive framework to avoid having to do sells as needed.

Voted for here. Not much to add since it was needed to cover expenses and it made sense from a Treasury perspective, so it was reasonable to do.

While this is not a sustainable action I voted in favor because it seemed necessary at the time to provide the DAO with the funds to pay for its operations and service providers.

I voted in favor of this and I believe the transaction still needs to be executed by the multisig.

I voted “For” on this proposal. Reason:

  • ideal time for execution
  • covers runway required for operations
  • would like to see this done quarterly/more frequently