The objective here is to have an open conversation on this topic… This suggestion is not related to or endorsing any particular AIP.
As part of my election campaign, I discussed the Financial Sustainability of the ApeCoin Dao. This is a very broad topic and there have been many suggestions made in the history of the ApeCoin Dao.
Historic Forum Posts
1. Special Council Notes - Former Special Council member @veratheape mentioned an ApeCoin Investment Fund in one of her weekly reports.
2. Withdraw AIP - @Amplify had a withdrawn AIP about an ApeCoin Investment DAO.
3. Discussion - @ssp1111 posted a discussion about Ape16z related to Angel/Seed investments.
4. Passed AIP - Governance Working Group (GWG) OKR4 in AIP-317: ApeCoin DAO Governance and Operations Budget @AllCityBAYC
To get to a sustainable revenue model for the DAO, I see a few broad themes and have listed them here:
1. Types of Income
a) Operational revenue
i) ApeChain related
ii) DEFI related
iiI) Product related
iv) Services related
2. Investments (Funding outside of purely Grant AIPs)
a) Direct managed investments
(This means within the Cayman Foundation)
b) In Working Groups running with Non-Profit structures.
Main focus would be to off-set the operational costs. How to handle P&L? Would the principal be protected?
c) InDirect investments via long term investments.
Such as investing in traditional investment funds General Partner/Limited Partner Model. We would be a LP in these funds and not have a management role. However, the focus would be blockchain/crypto/web3 related. They could be at different stages from Seed, Series A, Series B, Growth etc. What percentage of the funds are invested by the GP? 1%,2%-5% etc. We would need to consider if they need to incorporate any aspects related to ApeCoin or not in some of their investments. We also need to think about established funds vs first raise funds. Look at the risk profile, relative to expected return.
3. Grants that are not investments back to the DAO but aim to use part of the grant for funding investments. AIP recipients can ask for funding to manage an investment program. If the funds given are not invested with a return back to the DAO, they would be considered a Grant and not an investment. How this might work needs some serious thought. Something new isn’t impossible but the risk/rewards for the DAO must be considered.
Question asked. What is the runway?
One needs to consider that many of the DAO costs are dominated in USDC, whereas the Treasury is in APE. The fluctuation between this pair is important. If the APE price is at 15 then the Treasury of course is 10 times approx. the current value.
Related historic Links: