APEs need BRAKES!
TEAM DESCRIPTION:
The entire ApeCoin Community
PROPOSAL DESCRIPTION:
Based on current spend rate the DAO has about 12- 18months of unallocated reserves before it is empty. The track record to date on grant approvals has not demonstrated any sustainable return on investment to the DAO.
This situation is not tenable for any members of the community unless the intention is to close down the DAO once funds are depleted.
This proposal is to add an emergency brake when unallocated reserves drop to a 40million ApeCoin threshold. If this threshold is breached no AIPs will be put to vote unless the existence of, and orderly management of, the DAO is compromised if the AIP is not voted on. For simplicity, the decision regarding an AIPs eligibility against this condition will be taken by the Ape Foundation.
Should the threshold be breached, no resubmissions will be allowed.
When the threshold is close to being crossed, the number of AIPs put to vote (n) will be limited such that n-1 AIPs passing will not exceed the threshold but all AIP passing will exceed the threshold.
Should previously allocated funds become available again, AIPs may be voted on, only if the total unallocated funds exceeds 40m coins.
AIPs costing zero will not be subject to this threshold and may be put to vote as normal.
BENEFIT TO APECOIN ECOSYSTEM:
- protects the long term operation and existence of the DAO
- demonstrates that this community can manage its finances in a sensible manner.
- acts as a catalyst to change in voting. We need to get more selective, not all good ideas should go through. This additional constraint on spending will bring more focus on cost/benefits.
- forces community conversation and vote before any further spending below the threshold, and thus, potential depletion of the DAO treasury.
DEFINITIONS
No special definition used
STEPS TO IMPLEMENT:
Threshold commences on the date of this AIP passing.
REPORTING EXPECTATIONS:
Foundation to report unallocated funds on a quarterly basis with special notifications when the unallocated reserves reach 80m, 70m, 60m and 50m ApeCoin. (If they haven’t already!)
OVERALL COST:
Total amount requested from the ApeCoin Ecosystem Fund = zero
The total cost to the community of not doing this is the risk to the DAOs future existence.
Irrespective of the outcome of this, I would suggest the community starts focusses on AIPs that maintain the long terms sustainability of the DAO and ability to sustainably offer Grants to the next generation of Apes. The DAOs fate is in your hands.
Thank you for listening.
COMMUNITY COMMENT RESPONSES:
Here I will record additional notes based on community comments.
The DAO was originally a grant dao and has been effective in that task; however, the growth and responsibilities of the DAO have broadened. We have IP, licensing and ApeChain that require a fully functioning DAO. Failure to preserve funds for the operation of the DAO would be catastrophic. As such, the Treasury can no longer be, just for grants.
This AIP is a small step in the creation of responsible treasury management. Other AIPs regarding process and management will and are being proposed. This AIP does not hinder or prevent any other management systems from being put in place.
This AIP acts like a brake, it can be removed at a later date through another AIP. However, this AIP forces community conversation and then a separate vote prior to further spending below the set threshold. For me, this is a reasonable action to put in place to ensure that the fate of the DAO is a decision we take together.