@moss has responded to our questions and has provided consent to share them in this forum for the community.
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1. Are there any potential legal or regulatory risks associated with the activities of this AIP?
Managing a DAO treasury may come with legal risks that must be handled carefully to prevent potential disruptions and legal consequences, particularly concerning the personal liabilities of individual DAO contributors. We have experience in navigating these types of challenges and are confident we can structure a path forward which minimizes risks for all involved. However, a specific evaluation of the Apecoin’s situation is part of the job at hand.
2. What are the Objectives and Key Results which have been identified for this AIP?
Specific OKRs will need to be defined in the next preparatory phase. However some examples of OKRs could be:
Objective #1: Establish a transparent and effective governance structure for treasury management
Key Result 1: Develop and implement clear treasury management policies and procedures to ensure transparency, accountability and legal protection.
Key Result 2: Engage with Apecoin DAO to gather feedback on the treasury management program and incorporate suggestions into the program’s design and implementation.
Key Result 3: Develop 24/7 live reporting on the treasury’s performance, including financial statements, investment performance, and risk exposure, to ensure transparency and accountability to stakeholders.
Objective #2: Increase the DAO’s treasury recurrent cashflow
Key Result 1: Increase the DAO’s cashflow by the end of the year through active management and strategic investments
Key Result 2: Reduce the risk exposure of the treasury by diversifying into at least three different types of assets
Key Result 3: Increase the overall liquidity of the treasury through optimizing cash flow management and treasury operations
3. Please elaborate on the teams’ expectations for the future.
Avantgarde’s goal is to assume a leadership position within the Apecoin Treasury Working Group and emerge as a key contributor to the Apecoin ecosystem, thanks to the treasury program’s crucial and facilitative role. Our aim is to support the DAO’s growth and diversification efforts by establishing a treasury that can sustainably finance all its projects regardless of market conditions, functioning as a resilient and evergreen endowment.
4. Is the Ape Foundation expected to engage in any of the steps of the AIP implementation? If so, please specify the step and elaborate how it is expected to work.
We expect the Ape Foundation to act primarily as a facilitator for implementing decisions proposed and successfully voted on by the DAO, without taking an active role in the implementation process. The Foundation’s main focus is to help establish a proficient and professional treasury working group as quickly as possible, enabling the Working Group to assume responsibility for a portion of the total financial resources and invest them in a conservative manner to generate sustainable yields for the DAO.
Have you or your team identified any additional financial, operational, or brand risks associated with this AIP?
At present, the main risks can be classified into three categories: legal, technical, and market risks. As part of the preparatory phase, these risks will be identified, analyzed, and addressed through proposed solutions aimed at mitigating their potential impact.
Do you provide consent to share these questions with the community in this forum?
Yes, we do provide our consent and we firmly believe in radical transparency of all governance functions and processes.
A DAR package is being worked on and upon completion this AIP will move into Administrative Review. Follow this Topic as further updates will be posted here in the comments.
As someone who tracks the conglomerate of wallets that makes up our Treasury and how they expand over time. I do this to track the net cashflow with regards to our treasury : Ape Coin Tracker
I’m of the impression that we should streamline the process, the fees associated with coinbase’s institutional arrangement while being not that much wrt the Txn amount still add up considering we have burned through 50 + wallets (yes I mapped them manually, Yikes )
Here’s the pdf for the wallets which I tracked and where those funds are sitting rn : Treasury.pdf (1.7 MB)
If you want to see these for yourself, lmn and I’ll send you my credentials to access the closed beta. (if you don’t already have access ofc)
BTW i have more assets which you might find interesting, just hmu
We almost burn through wallets daily, we’ll have to ask ourselves if that’s sustainable right? It’s inconvenient, just like stubbing your toe.
I’m on the lookout for a better implementation and have a couple of things in mind which I’d like to share
There’s also a case to be made for and against the fractionalisation of community funds across (much better than having 150 wallets imo) various entities and the ramifications that entails.
That’s a valid point we’d have to address, I think that’ll be all for now.
A tad bit late to the party but still Let’s get this through, Have an awesome day
Hey, @moss and the team!
Thank you so much for structuring it in a very nice way and thank you for leading the whole process! Feels like nice operational and governance processes are crucial for DAOs like ApeCoin. Imo the ideal solution would combine decentralization and transparency as inherent features while being guided by a team of highly skilled professionals who share similar experiences in DeFi Treasury and Asset Management. Although it presents itself as a puzzle, I am confident that you are the perfect fit for this!
I as a person would be super happy to help you guys with setting up all the processes and frameworks, but also with the asset allocation processes. I have a quantitative finance background, and spend more than 7 years in research and backtesting of quant portfolios. I worked as a quant and also held the head of investment position in a crypto asset management firm, where I was responsible for portfolio construction ($10M++ AUM and 20-40% alpha compared to mrkt-cap indexes), risk management, and performance reporting, as well as creating investment principles and policies. On the DeFi and DAO side, I was an active contributor and early investor in several projects like MagnetDAO and Olympus. I currently work in Treasury and Risk Management Pod at GroDAO and lead the strategic finance unit at w3s working with many large ecosystem players in crypto.
Hopefully, we can talk about how I can support the Treasury WG in several ways.
Thanks, guys, for leading this huge DAO machine, and looking forward to the proposal!
Thank you @moss for starting this very important discussion. I am super passionate about the DAO being able to sustain itself in perpetuity and am in support of an active treasury management.
Researching and implementing a risk assessment and management framework;
This point especially sparks my interest since my background is in cybersecurity and risk management with a focus in yield generating strategies for DAOs. I would love to contribute and am looking forward to continue the conversation.
Thanks to everyone working towards a bright future for the ApeCoin DAO. Imo this is definitely a step in the right direction.
This was a very interesting discussion. It comes to mind that one can state that reinventing the wheel is not always necessary in each and every instance of DAO operation, to do so might in fact result in something that might give a very bumpy and dangerous ride to all in the end.
Hey all! Thanks for the supportive words and the constructive comments on this thread. We believe that this a pivotal piece of work as it unleashes so much potential for the whole community. We are keen to see this proposal move forward through the governance process and to roll up our sleeves in order to best coordinate the treasury function among all stakeholders involved.