- before we execute any plan to stake these tokens we need to evaluate the impact on overall APR and we commit to only staking what can drive accretive value to all stakeholders. We also need a transparent decision matrix for delegation. It’s much more important to evaluate the protocol as a whole from a capital management perspective
- The short answer is we can’t, the treasury subdao by itself is not going to drive incremental revenue. We repeatedly stress that, by itself, cash reserve management is not a value driving activity. An endowment that could increase protocol revenue by 17% from today would have to be absolutely gargantuan. This is not the right model for most protocols, including dydx. However, we agree that revenue growth is the most important lever to drive sustainability. The second most important lever is to make sure those revenues (new capital) is being allocated well to ensure growth. We can help the community navigate both revenue growth and capital allocation, which is the advantage of our proposal
The next best alternative to our proposal is likely something like a 0 cost BORG like structure that simply stakes the community treasury and lets the Foundation sweep the USDC rewards. No management or performance fees are necessary for just this activity.