The Goal and Strategy of DAO Resources
The Franken DAO Treasury is the economic driver for the Punksville Ecosystem. The assets in the DAO are managed by the Active Members of the DAO.
Its assets are expected to consist primarily of ETH, Fully Backed Stablecoins (USDC, USDT, DAI), and CryptoPunks NFTs.
Royalty income from genesis FrankenPunks NFTs, 3D FrankenMonsters NFTs, and revenue streams that are created through DAO proposals will be transferred into the treasury.
The DAO funds are disbursed to fund activities and experiments passed by DAO. This will be done in a trustless manner, which means once a proposal is passed, an on-chain transaction will occur in our Franken DAO smart contract which automatically executes the code proposed in the proposal (IE. send this address a certain amount of ETH/USDC/CryptoPunk)
Treasury funds are used for 3 purposes:
- 1.Executing on Franken DAO proposals
- 2.Paying incentives to members for working on proposals as well as paying 3rd party contractors (solidity guild, developer DAOs, 3rd party DAO Bounty Hunters) to execute a passed proposal
- 3.Holding idle assets in non-custodial DeFI solutions/strategies
- 4.Gas refunds for on-chain transactions completed by DAO participants
In general, the security and preservation of treasury assets is the top priority. Keeping this in mind, the Treasury is expected to:
- 1.Hold assets in ETH/WETH and USDC/USDT/DAI Stablecoins.
- 2.Hold CryptoPunk NFTs & Other highly liquid "blue-chip" NFTs as voted on by the community.
- 3.Try their best to keep under 50% exposure in any single protocol, platform, DEX or ERC20 coin other than ETH/WETH or USDC/USDT at any given time.
In general, all restrictions can be changed through an on-chain proposal. However, it is suggested that the following actions should be refrained from unless it is a very special circumstance:
- 1.Use of uncollateralized leveraged positions
- 2.Yield farm on any protocol offering unsustainable returns
- 3.Borrow any amount of treasury assets for a purely speculative investment thesis
- 4.Utilize CEFI exchanges or lenders
Note: This is not a complete list of restrictions and can be subject to change at the sole discretion of the Franken DAO Treasury Council.
The Franken DAO holds 4 original Larva Labs cough cough I meant Yuga Labs' CryptoPunks. They are believed to be one of the highest quality bluechip NFTs in existence, and even predate the ERC721 NFT token standard itself. There are nuanced methods of storing original CryptoPunk assets which include directly interacting with the Larva Labs contract in order to transfer, list, purchase, and retrieve funds from sold CryptoPunks.
As stewards of the CryptoPunks, voting members are encouraged to explore all use cases of their IP!