| Status | Draft |

Abstract

Establish basic parameters around the DAO’s working capital / runway and the handling of revenue on an ongoing basis.

Justification

Presently the DAO keeps almost all of its treasury funds in ETH, and has not heretofore had a standard process for converting income to stablecoins in order to fund ongoing operations. This EP proposes standard expectations for the DAO to follow, specifying expected balances and actions to be taken on an ongoing basis in order to ensure the DAO continues to be able to execute on its goals effectively.

Specification

1. The DAO shall at all times aim to keep funds equivalent to 24 months expenditures available in a combination of USDC and DAI in its primary timelock account.
2. This figure will initially be set at $16,000,000 USD. After each term’s working group budgets are approved by the DAO, the Lead Steward shall provide an updated estimate of the DAO’s expenditures for the next 24 months.
3. On an ongoing basis and at least monthly, the DAO shall ‘sweep’ newly earned revenue collected by the .eth registrar contract. Enough of this will be converted to stablecoins and sent to the DAO’s primary timelock account to restore the balance to the amount specified in (1). If insufficient funds are available, all available funds will be converted and sent.
4. Any additional funds that remain after topping up the DAO’s primary timelock shall be sent in ETH to the DAO’s endowment fund to be invested according to the rules established for that fund.
5. Upon passing this proposal, the DAO will vote to implement an executable proposal that:
   1. Converts sufficient ETH to USDC to increase the DAO timelock’s balance to $16,000,000.
   2. Implements a non-custodial system to automate the regular collection, conversion, and transmission of revenue. This may make use of an automated process with limited permissions to conduct these actions without taking custody of the funds.
6. Upon passing this proposal, the DAO notifies the Lead Steward of their responsiblity to monitor the state of the DAO’s accounts, and regularly update the DAO as to their state, and to make reports to the DAO whenever they judge that action from the DAO may be required.