Strategic Token Swaps and Delegations with other DAOs for Improved Treasury Diversification and Enhanced Governance Alignment

PROPOSAL NAME:

Strategic Token Swaps and Delegations with other DAOs for Improved Treasury Diversification and Enhanced Governance Alignment

TEAM DESCRIPTION:

Captain Trippy - ApeCoin DAO Special Council

PROPOSAL DESCRIPTION

This AIP proposes granting the ApeCoin Foundation discretionary power to engage in strategic token swaps and/ or delegations with other established DAOs, utilizing up to 15 million APE of the ApeCoin treasury. These swaps aim to achieve strategic alignment with other ecosystems, diversify the DAO’s treasury holdings, and facilitate mutual representation in each other’s governance processes.

BENEFIT TO APECOIN ECOSYSTEM:

  1. Strategic Partnerships: Token swaps with aligned DAOs can open up new avenues for collaboration and mutual support.

  2. Treasury Diversification: By diversifying the types of assets held, the ApeCoin DAO can reduce risk and increase the resilience of its financial holdings.

  3. Enhanced Governance Participation: Participating in other DAOs’ governance allows ApeCoin to have strong representation in numerous strategic locations across web3 and allows for increased governance participation in ApeCoin DAO.

  4. Community Engagement: These strategic alignments can drive further engagement from the community, as members can participate in broader governance activities.

DEFINITIONS:

  • Token Swap: An exchange of tokens between two parties that allows each to diversify their holdings or gain strategic advantages.
  • Strategic Alignment: Partnerships or collaborations that align with the DAO’s long-term goals and objectives.
  • Governance Representation: Participation in the decision-making process of another organization, typically through voting rights acquired via token ownership.

STEPS TO IMPLEMENT

  1. Identification of Potential DAO Partners: Research and identify potential DAOs that align with ApeCoin’s strategic goals for potential token swaps.

  2. Community Consultation: Engage with the ApeCoin community to solicit feedback on proposed partnerships and terms of swaps.

  3. Negotiation of Terms: Negotiate the terms of the token swaps with selected DAOs, ensuring alignment with ApeCoin’s strategic interests. Work with Foundation legal team on executing agreements.

  4. Execution of Token Swaps: Conduct the token swaps within the set discretionary limit of up to 15 million APE of the treasury, under the oversight of the Ape Foundation.

  5. Ongoing Monitoring and Reporting: Monitor the outcomes of the token swaps and regularly report back to the community on performance and strategic value.

OVERALL COST:

15 million ApeCoin

REPORTING EXPECTATIONS:

It is the responsibility of the Foundation to report on the quarterly transparency report the current holdings held by the Foundation, including any tokens both sent to other DAOs or received by other DAOs into our treasury.

ADDITIONAL NOTES:
The ApeCoin Foundation will ensure that all token swaps are conducted transparently, with regular updates provided to the community.

This AIP aims to empower the ApeCoin DAO with the flexibility to strategically position itself within Web3, enhancing its stability, reach, and influence through carefully managed token swaps.

It is not the intent of the ApeCoin Foundation to execute these swaps with the intent to sell and commercial terms with that understanding should reflect that intention over a period of time, while also allowing the flexibility of use in the future if the need should arise.

While feedback from the community will be consulted, there could be times a decision needs to be made without naming the other party. In such cases, the Foundation has the discretion to make the decision without broader community input.

Community input does not imply that each negotiated swap would go to community vote.

TRUST is at an all time low right now so I’d love more detail around this. Do we get to decide on each swap via a vote? Or will it simply be we can give feedback on what the foundation intends, which can (and often is) ignored?

I keep seeing efforts to remove important decisions from the hands of the community, instead they happen behind closed doors with very little transparency and accountability.

Highlighting this point for people (below) - we’ll be unable to know if we believe the DAO aligns with ours, as we’ll simply not know who they are until after - “TRUST ME BRO” (I think it’s known as).

Tl;dr - One implication here will be the addition of up to 15m $ape into our voting. TRUST is extremely low atm so it’s imperative the community is heavily involved in identifying DAOs that “align” (redacted cannot ever work). Also a community snapshot vote must be mandatory for each token swap approval.

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