You didn’t come with the facts this time, sorry to say.
Converting to stables isn’t a bad thing, obviously I would be suggesting to do the 15% at the moment considering the upside is probably higher than the downside, but either way, its not a bad thing.
I just added the facts throughout the conversation for you. Converting to stables isn’t a bad thing no. Well done.
So, no we have that out of the way… What part of this proposal do you agree with and which parts are you going to have a constructive conversation about and maybe suggest change to some parts?
I’ll summon you when I’m ready thanks. And don’t speak on behalf of people that aren’t a part of your team.
Here’s another reason why it wasn’t a bad idea.
So the 2023 funding was around November 2023, the USDT conversion was at the start of 2023, the team would’ve saved the project around $62k
By converting the XTZ to USDT around January-March 2023 when the price avg around $1.11, you would have saved around $62k compared to having to pay $195k worth of XTZ at the price of $0.85 in November 2023.
Obviously the above is a rough estimate based on prices around that time and the data the team have provided.
We want to clarify that the Tezos Domains Core team currently cannot exchange XTZ to stablecoins without explicit DAO approval.
Our funding model is unique in that the vast majority of our expenses are denominated in USD. Our existing funding proposal required bi-annual payments, which necessitates converting from XTZ to USDT at predetermined dates, regardless of the prevailing XTZ/USD exchange rate.
This proposal aims to provide a structured mechanism to minimize market volatility by maintaining a portion of our treasury in USDT. It would offer us more predictability in managing our financial resources while protecting against significant market swings.
I like this proposal in general.
Since there is no additional DAO vote required for conversion, I’d say let’s limit the amount of XTZ that can be sold to 10% only every X months. On one hand, this will provide the DAO and community with more time to get on board with the fact that treasurer is selling some XTZ for fiat, on the other hand this will protect the treasurer from misjudging the market and converting too much XTZ.
We should also have a provision in the proposal that the CM will immediately notify the community that a conversion to fiat is occurring imminently. This should give us more transparency and some time for the community and DAO to weigh in.
Thank you for the suggestion.
I eddited the proposal with a limit for a maximum of 10% of the treasury exchanged each calendar month.
Changing proposal to ACTIVE, assigning P-019 and locking original post from further changes.
Voting details have been added to the OP as per timestamp.