AIP-355: Reallocation of Ecosystem Fund into Ethereum and USDC

Hi @0xSword,

Thank you for your ideas [and the ApeCoin DAO community for the insightful discussions].

A moderator will reach out to the author to finalize the AIP Draft using the appropriate template.

  • Once the AIP Draft is confirmed by the author and meets all DAO-approved guidelines, it will move forward for Administrative Review.
  • @0xSword please see your messages for the next steps.

Follow this Topic as further updates will be posted here in the comments. In accordance with DAO-approved guidelines, if the author does not respond within 30 days, the proposal will be automatically transferred to the Withdrawn category, and the author can re-submit the idea

-@Facilitators

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Hi ApeCoin DAO Community,

@0xSword has completed editing their AIP Idea to be their AIP Draft.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

Hi ApeCoin DAO Community,

We have no further questions for @0xSword. This AIP is now under Administrative Review.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

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Hi ApeCoin DAO Community,

Edits have been made to this Topic, by the author or with the author’s consent.

You can click the Pencil icon at the top of the post to see these edits.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

I totally agree with your reservations. IMO Treasury decisions should only be presented by qualified people.

We do already hold a chunk of USDC, and afaik the powers that be have the ability to convert funds if they deem fit to do so at any time, so I do struggle to understand the why here.

I’m confident many will agree with these valid concerns raised.

I’m a big fan of active treasury management. Without one you are stuck between two poles: Luck (if the price moves in your favour) and stupidity (when it goes against you).

Even at a very basic level there should be expenditure hedging. There are fixed dollar denominated costs absorbed by the foundation and these should be hedged using reputable stables.

More broadly, I agree that a large proportion of the treasury should always remain in the native token but diversification in balances via a defined treasury management policy would be prudent. Re concerns about impact, smart execution of orders using OTC desks and/or (preferably) algos would make executing size quite efficient.

All that said, now is not a particularly good time to convert given $ape’s relative weakness.

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This proposal is live for vote on Snapshot. The voting period closes next Wednesday at 9PM EST.

The AIP implementation is administered by the Ape Foundation. Implementation may be immaterially or materially altered to optimize for security, usability, to protect APE holders, and otherwise to effect the intent of the AIP. Any material deviations from an AIP, as initially approved, will be disclosed to the APE holder community.

I support the idea of diversifying the DAO’s asset holdings, but I believe that we should wait to do this since the price of ApeCoin is still near its all time low. This proposal would lead to a significant dump in the price of ApeCoin since we are essentially selling very large amounts of it, and would earn less for the DAO than if we wait for prices to recover during the coming crypto market bullrun.

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Hey @hamman247! Thanks for leaving a comment. I’ve had others also indicate that this may not be the best time to do even a small reallocation, which is absolutely fine. When it was first drafted, not long ago even, market conditions were a bit different, and also sentiment was different. Early voting indicates that the DAO may want to wait until a later time! For better or worse, it’ll be fine. I was looking forward to seeing how this would expand responsibilities of the Ape Foundation to manage the OTC selling + custodianship, and I still see benefits in doing it now, but it’s not something I take personally to see the DAO choose not to!

3 Likes

Diversification into Ethereum and USDC is a brilliant move! It not only acts as a buffer against market fluctuations but also allows the DAO to adapt to dynamic circumstances. This proposal emphasizes flexibility and long-term confidence – crucial elements for sustained growth. Let’s support this strategic initiative!

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Hi ApeCoin DAO Community,

The voting has closed for this proposal and it has not been approved.

This Topic will be moved to and remain in the Rejected AIPs subcategory.

-@Facilitators

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