MIP #4: Diversify DAO funds into ETH

Summary

273 MUSE are released every day to the “DAO” from the vesting contract, the DAO will eventually own 100k MUSE, about 10% of final supply.

We propose to diversify some of the MUSE holdings into ETH to start improving the DAO and use the funds to cover audits, hiring, contract deployment expenses and marketing.

Motivation

By having a healthy treasury we could grow exponentially by doing more experiments as deployment costs won’t be that much of an issue, perform audits to our contracts, create multi-sig wallets and start decentralizing our protocol more, also invest in marketing campaigns that align to our value to attract more builders and users.

Technical

Sell up to $2 million in total holdings via different mechanisms

If we manage to find a fitting VC company, we would raise $2 million in an OTC deal.

If we don’t find a fitting VC company, try to sell up to $500k via Uniswap over a period of time in small batches of 200-500 muse.

There is enough liquidity to do it in a way that it won’t influence the market. Depending on market conditions this could last a few days to a few months.

In the case of the DAO not owning enough MUSE at the time of a deal (because only 273 muse are released a day), the core developers are willing to loan the DAO the full amount of MUSE from their personal earnings, they would be paid back via the DAO vesting contract in increments of 273 a day until the full amount of the loan is paid back with no interest or extras.

Check out the results on the Snapshot vote