Proposal #11: Strategic Treasury Diversification

Summary

On behalf of Maven 11 Capital, I have prepared the following Proposal to Tracer DAO, based on community feedback received on two previous posts on Discourse: first here and second here. This proposal has been created to incorporate the changes from the community discussed in those posts. Furthermore, I would like to thank Lion’s Mane and Adam specifically for helping me with the formatting of the proposal.

This proposal would diversify a portion of the TCR governance tokens held in the Tracer DAO treasury into USDC via a direct TCR acquisition by Maven 11 and its strategic partners, listed in the section below.

This proposal attempts to strike a balance between:

  1. Not expending too many TCR tokens at an early stage for the protocol; and

  2. Introducing a variety of long-term strategic partners to the Tracer DAO with a variety of specialisations, to support the DAO in areas including:

    a. capital for further proposals;

    b. advice based on industry experience;

    c. liquidity to ensure stability of protocol;

    d. networking to increase flow of opportunities for Tracer DAO; and e. diversifying the Tracer DAO to help guard against the event of any (macro) market downturn.

We note that these considerations are inspired by comments made by various members of the Tracer community in recent months, including RMIT BIH (SincDavidson), Wulfmane, Beepidibop, JustASushiChef, MordantBlack, yodges, Mark11 and Lion’s Mane.

We remind all community members that the TCR token is a governance token only, which means it allows holders to participate in Tracer DAO via its governance mechanism and provides no ownership, financial or economic rights of any kind.

Strategic Partners

Strategic Partner $USDC Commitment Number of TCR Tokens Ethereum Address
Funds
Framework Ventures $1,000,000 22,222,222 0x0d298f3220eAdf02D10C9Feff537B50787725418
DACM $750,000 16,666,667 0xf8ccf1f5381956f4152B5570627C49D42eABB60e
Maven 11 $300,000 6,666,667 0x8938892193FddAB15F113459E91e1c4Ab1f052A4
Apollo Capital $300,000 6,666,667 0x2ce5f9f52C1eec9a1183f91139C59b485Ff39dAd
Distributed Global Ventures T2 LP $225,000 5,000,000 0xb298F84eB4A1b5180a90006c8573422CD66321fc
Distributed Global Ventures II LP $225,000 5,000,000 0xC572550343B4bC82734Cfb6bA28c86b350513F18
Paperclip Fund $150,000 3,333,333 0x09a73Ca620c4D2e92009a68cB681741745191774
Supernova $80,000 1,777,778 0xc1bbc31e3b4300f3dc0f865ee10c38fc0e0b8061
Market Makers
GSR $500,000 11,111,111 0x7a025ecded9ca07d5C887776391Bf8D4D34Ee11E
Efficient Frontier $100,000 2,222,222 0xcb4f5a5f5ebec3de8f697cf38b7fa0f1878110f4
DAOs
The LAO $200,000 4,444,444 0x2D81713c58452c92C19b2917e1C770eEcF53Fe41
Baires DAO $100,000 2,222,222 0xf6b6f07862a02c85628b3a9688beae07fea9c863
Angels
Maker Mafia (Nik, Charles, Gustav & Mariano) $75,000 1,666,667 0xc304e5d59707DA4F821e136B965DDeF534FB47B1
Simon Cant (Reinventure) $58,350 1,296,667 0x51164aBE5Fcd2249CEB75aC54afE0AFD8d36ad4e
Danny Gilligan (Reinventure) $58,350 1,296,667 0x2Cf0DfCc4149f8CaA8F5D6614CCB339587f8F20f
Joyce Yang (GCR) $50,000 1,111,111 0xb0353d0A6690B0De6C50F00A1dd4D3B227fF596b
Stani Kulechov (Aave) $50,000 1,111,111 0xF5Fb27b912D987B5b6e02A1B1BE0C1F0740E2c6f
Ashwin Ramachandran (Dragonfly) $50,000 1,111,111 0xd046135Ba00B0315eD4c3135206C87a7F4EB57D9
Philippe Perzi (MD GS) $30,000 666,667 0x6b2633830704d9fd18daC155E7620673d8F27f1b
0xMaki (SushiSwap) $25,000 555,556 0xc3598d91844b061195136600ad243b077cc164e2
TokenInsight $25,000 555,556 0xC2FaAf1233e36B879Cc411A38e23F7d41cc3D71A
Henrik Andersson (Apollo/mStable/dHedge) $20,000 444,444 0x20C39b973ce1987865bc0D8373e45fc1a0f085C0
Kevin De Patoul & Juan David Mendieta (Keyrock) $20,000 444,444 0xE50E6Ad4bFfD91151e4441B4ACd81C8098f355ae
Radek Ostrowski (dHedge) $15,000 333,333 0xb3C4C88A5A8760f0C1E9B1C618B58A21cdB336eF
Ermin Nurovic (dHedge) $15,000 333,333 0xd81f3d609d4317f6de1f3d86862eb10b51645e23
Darren Smorgon (Sandbar Investments) $15,000 333,333 0x69B5F5e85CE1B82b383034a1c2629c143B8E29a9
Kevin O’Hara (Sentor Investments) $15,000 333,333 0x3b1E215FE1138aA9034b5E6De39892e45ac05176
Sid Powell (Maple) $10,000 222,222 0xf0cf9631ee58cc8f3eec5bd8a78797c1447bb476
Joe Flanagan (Maple) $10,000 222,222 0xd16295DEA1115C9df62FC35017bB359fb1E6d639
James Simpson (mStable) $10,000 222,222 0x3DF1b295d394B6c77415e9659Cc1a7DBCcA76Be7
Marc Woodward (Apollo) $10,000 222,222 0xb747f20b7B729d385a844ed200e8Ce914cEFc9d8
Rohen Sood (Reinventure) $8,300 184,444 0x673A7f6C72b26aE0521c0F44C321650890858EC5

Terms

Consideration, Deliverables and Variation and Termination

If this proposal succeeds, the strategic diversification will occur on the following terms:

  1. Token Strategic Diversification

    1. Tracer DAO will transfer 100,000,000 TCR tokens (10% of TCR token total supply) to the strategic partners.

    2. In consideration, the strategic partners will collectively transfer 4,500,000 USDC to Tracer DAO.

  2. Method of Transfer

    1. Once this proposal is executed on Snapshot, each strategic partner will have 14 days to transfer its agreed amount of USDC to the DAO Treasury (Transfer Period).

    2. If a strategic partner does not deposit its agreed amount of USDC to Tracer DAO’s treasury within the Transfer Period, any deposited USDC will be returned to that strategic partner, and it will not receive any TCR tokens in connection with this proposal.

    3. At the end of the Transfer Period, an on-chain proposal will be pushed to the DAO to transfer the strategic partners’ TCR tokens to a vesting contract.

    4. Once the on-chain proposal is executed, TCR tokens will begin vesting to the strategic partners.

  3. Vesting

    1. The tokens will vest linearly over a two year period, starting when this proposal is executed on-chain.
  4. Variation and Termination

    1. This proposal cannot be varied or terminated by future proposals.

Conflicts of Interest

In the context of the Tracer Project, conflicts of interest include:

  1. Existing Service Providers who are Related Parties; and

  2. Existing (vested and unvested) holdings of TCR tokens.

All participants in the treasury diversification wish to declare the following conflicts of interest:

  1. No conflicts of interest to declare.

Interpretation

Unless otherwise defined in this offer, all terms beginning with a capital letter which are defined in the Participation Agreement have the same meaning unless the context otherwise requires.

Copyright Waiver

Copyright and related rights are waived pursuant to CC0.

References

This proposal is inspired by the work of BadgerDAO, LIDO and PoolTogether in their treasury diversification efforts.

14 Likes

Quite a diverse set of angel investors. I love it! I assume this will push the Gnosis auction back a bit since we won’t be so strapped for funds after this?

6 Likes

Yes the Gnosis Auction will be looking most likely to be implemented sometime after launch - within the next month.

4 Likes

Looks good. Nice group y’all put together - I am 100% behind this transaction. My only concern is that since USDC has a blacklist, TracerDAO must commit to FATF compliance lest we fall victim to an asset freeze. Very doubtful, but we must build a solid foundation for posterity.

8 Likes

Good point - we will be able to easily swap to DAI if necessary to combat the concern here in the near future.

2 Likes

Amazingly structured proposal & governance process here all.

Just thought I’d pop in to say this propsoal is something :fire:_ :fire:(FireEyes DAO) has massive support for! Even if we were too late to get ourselves a slice of TCR!

As Tracer approaches launch :fire:_ :fire: is keen to particiate in both governance & community growth. Keep up the grind :unicorn:

6 Likes

My confirmed $10,000 allocation (above) was not listed in the proposal for voting. Could this please be added to the official proposal before being pushed onchain? Thank you!

2 Likes

@Marc thanks for noting - we will add your name and address to the proposal before being pushed on-chain if the proposal is passed.

1 Like

This is an awesome process - DACM is excited to be part of the proposal and, subject to governance, officially joining to Tracer community! Love what the project is building

2 Likes

The names are really impressive and can bring a lot to the project in terms of the connections in the space. Great job by the team and thank you @MathijsM11

3 Likes

Super impressive stuff!

2 Likes

Great set of angel investors, very impressive. I hope you guys consider market conditions while implementing the Gnosis auction.

1 Like

As per the Snapshot proposal: Snapshot, GSR would like to change our address receiving TCR to: 0x7a025ecded9ca07d5C887776391Bf8D4D34Ee11E.

1 Like

Hi @GSR_Byron, I have updated your address ready for the proposal to be pushed on-chain.

1 Like