P-019 ACTIVE: Tezos Domains Treasury Management Proposal

Governance Proposals
1

Voting period: 14 days

Categories:

Social Proposal
Request for Action
Constitution Amendment

Abstract:

This proposal aims to provide the Tezos Domains treasurer with the flexibility to manage the treasury by converting XTZ to USD stablecoins, ensuring financial stability and risk mitigation. The treasurer will be authorized to maintain between 15% and 50% of the treasury in stable assets, protecting the project’s financial resources from cryptocurrency market volatility.

Rationale:

Cryptocurrency markets are inherently volatile, which can pose significant risks to project treasuries. By allowing the treasurer to convert a portion of the XTZ holdings to USD stablecoins, we can:

  1. Protect the project’s financial resources from extreme market fluctuations
  2. Ensure consistent funding capability for ongoing operations
  3. Provide financial flexibility while maintaining exposure to the Tezos ecosystem
  4. Implement a prudent risk management strategy that balances potential upside with downside protection

Details:

  • The treasurer will have the discretion to convert between 15% and 50% of the treasury from XTZ to USD stablecoins but no more than 10% within one calendar month
  • Conversions should be executed strategically, considering market conditions and project financial needs
  • Regular reporting on treasury composition will be required to maintain transparency
  • The conversion strategy aims to balance risk mitigation with potential cryptocurrency appreciation

Fund Request Procedure:

  1. Fund Transfer Process
  • Treasurer will create a multisig proposal to transfer funds to: tz1iVojPo5Vu7QQQ3QquqmB18mJBgFE1YeoQ
  • Proposal will specify: a) Amount of XTZ to be transferred b) Intended purpose of the funds
  1. Multisig Approval
  • Requires standard multisig approval process
  • Funds will be transferred upon successful multisig confirmation

The proposed range allows for adaptive treasury management while preventing over-exposure to either cryptocurrency volatility or stablecoin conservation. This approach provides a balanced method to protect the project’s financial resources while maintaining flexibility.

Vote on P-019: Tezos Homebase
Vote Ends: 8 January 2025 at 17:32 GMT

Proposal Passing Requirement: Outcomes (excluding ‘Abstain’) with the most votes & 10%+ TEDv quorum

3

Didn’t you selloff parts of the treasury last time, then Tezos hit $5 meaning we lost roughly 3-4x of the treasury’s value? Not sure why you hid my first message to this proposal asking the same question…

4

The first move from XTZ to a stablecoin (USDT) was back in Jan-Mar 2023. The price didn’t go up to $5. - only judging from on-chain activity from the current treasury & the interim treasury outgoings & announcements on discord at the time.

5

Forgive me, it wasn’t exactly $5 but it still went up by at least 2x.

6

Incorrect, either way, the team didn’t have a fortune ball to see where XTZ will be in the future. Hedging over to stables was a good idea. Everyone is a genius in the future with 20/20 hindsight

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7

I’m not incorrect, it wasn’t a good idea… As soon as they sold it risen by 2x-3x… We lost value.

8

The hedge was more than the average price of XTZ since Jan 2023 to now.

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As mentioned, hindsight.

9

Of course hindsight, but you’re defending the move to it when it cost the treasury at least 2x its value lol.

10

You’d also be complaining at the fact if XTZ didn’t do so well and the Team didn’t hedge to stables, its literally a lose/lose either way in your eyes. Hedging a % of the treasury offered stability at the time.

11

No it isn’t a lose/lose, you just sell in a bull not a bear market. Einstein

12

Well it is, you complain about pushing to stable but you’d also be complaining if XTZ was 0.3c and they didn’t push to a stable. The scenario of crystal ball predictions are bad when it comes to stability, it’s not like they pushed all XTZ to stables.

13

Don’t speak on my behalf, I think selling to stables if XTZ price is 0.3c is ludicrous… If anything I’d convert stables over to XTZ.

14

You’re not reading what I said. I said you’d be annoyed that we didn’t convert to USDT @ $1.00~* if XTZ hit 0.3c.

In short, you wouldn’t be happy either way.

15

They sold in a bear market.

You’re speaking for me as to what I’d be happy and not happy with… You got a crystal ball yourself?

16

Take your time, don’t slip.

17

No, but it’s quite clear you’re just thinking negatively about this considering you think XTZ shot up to $5 after they sold, which it didn’t. The point I was making was you’re thinking in hindsight, everyone’s a genius in a bull market

18

I’m not thinking negatively? I just asked “Didn’t you selloff parts of the treasury last time, then Tezos hit $5 meaning we lost roughly 3-4x of the treasury’s value?”

I apologized for my error stating $5. Nowhere in any of my messages does it show me being against converting to stables?

I’m not thinking in hindsight either, where did you get this from? I stated they sold in a bear, which was the wrong move… You don’t need hindsight for bull and bear, we know when (not the tops).

Cmon now. Stop putting words in my mouth or speak for me.

19

I genuinely admire your critique Giant, however, before you do post, come with some facts, it only takes a little research and a calculator to understand its no where near $5 and/or 3-4x the value of the treasury. As it stands, the difference increase currently in USD value is a 24.83% increase (if we didn’t convert to USDT). Its obviously not ideal, but could’ve been alot worse.

I understand that you could’ve guessed a better future, however, the outcome is really not as bad as you think or it comes across.

20

Stop waffling mate, all I come with is the facts.

And if I am wrong, I will quickly correct it. Unlike these lot.