Tribal Council Proposal - Creating a Financials Pod
TCP - 1 (placeholder serial number, pending governance discussion)
Author: Cozeno

Summary:
The Tribal Council would create a “Financials Pod” using the provisions provided by FIP-82: Governance Enhancements 3. The newly created pod would be responsible for developing and publishing FEI’s target interest rate, publishing a quarterly financial statement on behalf of FEI, and other responsibilities that may be added via amendments to this proposal.

Motivation:

The desire to establish a fixed policy interest rate for FEI has been brought up many times: FIP 103: Native risk-free FEI interest rate 3% - #7 by OneTrueKirk Idea: Fei Protocol Target Rate 1, The road to 1B FEI - #10 by SebVentures 1.

Pursuant to the discussions in these threads, there seems to be considerable agreement that a target supply interest rate in the model of DAI DSR is desirable.

There are some ideas floated currently regarding how this rate can be arrived at, though the leading consensus thus far has been to base it on a basket of market driven indicators. After further discussion, I have proposed that the creation of a pod staffed by DAO members who have been keen on the monetary policy side of the protocol would be the best way to achieve this.

There are also other responsibilities of the protocol that would benefit from being formally administered. Fei Financial Report 10 was a very interesting but unexecuted idea and something that would greatly benefit the protocol, this body should seek to publish an official quarterly financial report on behalf of the protocol.

Other responsibilities pertaining to monetary policy may be taken on by this body as well, and suggestions for other responsibilities are strongly welcome in the comments below.

Parameters:

After discussion, the Tribal Council would vote to establish a “Financials Pod” under the provisions of FIP-82. This pod would have a variable membership of up to 5 members; any DAO members who are interested in participating may self-nominate in the thread below.

This Financials Pod would be primarily a research body, and thus incorporated with minimal control over on-chain actions. Each new member would be confirmed by a simple majority vote from the Tribal Council for a one year period.

The inaugural responsibilities of this pod would be to research and compile a basket of indicators that would generate an appropriate supply target rate. The pod would maintain and publish the rate based on the parameters every month, and update the policy rate into the proposed stacking contract for FEI’s risk-free interest rate via a simple majority vote of pod members.

The secondary responsibilities of this pod would be to compile and publish a quarterly financial report for FEI: detailing all protocol revenues, all operating expenses (which would include cost of staking rewards, and other outlays authorized by the DAO), PCV profit, and, pending discussion, perhaps a balance sheet of PCV assets.

Amendments to the responsibilities of the financial pod may be submitted for forum discussion and adopted by a simple majority vote from the Tribal Council. Pending community discussion, this proposal could also serve as a precedent/template for the incorporation of other pods. proposals that directly invokes Tribal Council actions may be serialized with the TCP-xx format for record keeping.