I am opening this discussion off the back of a separate thread regarding Sifu’s role as treasurer. Setting my opinions aside, I am concerned with taking any kind of hasty approach out of backlash, especially given this would be an all or nothing one. There are areas for improvement in the current form, along with an opportunity for the community to improve our support for the DAO.
An idea that I would like to propose is to allocate a small portion of the DAO to be managed separately from Sifu, in effect creating a ‘feeder fund’. By taking this approach it would allow the capital in the treasury to be structured in a way that allows for a more efficient allocation of capital, both in generating absolute returns and in diversifying the source of those returns. It reduces risk by allowing for uncorrelated returns to stabilize the growth of the treasury over time. It also allows Sifu to scale his work by increasing or decreasing the allocation to the feeder fund based on the opportunities available. Finally, it allows for increased diversity of ideas that the treasury can capitalize on, opening additional avenues to generate alpha.
Additionally, there are additional benefits to the community and the DAO beyond capital allocation. It would create an opportunity to present alternative approaches for managing and reporting in a DAO structure compared to the current structure. This opens the potential for synergy by leveraging the best traits from the ‘feeder’ fund to improve areas of the main fund and vice verse. And by doing so we can reduce the burden on Sifu to do all of this. It would also create the opportunity for Sifu to have an equal partner, and for either of them to act as successors of the other. This reduces the risk of panic in the market should a tough decision need to be made or if a mistake is made.
To be specific on this, I would like to propose that I take ownership of managing this initial ‘feeder’ fund on behalf of the DAO, helping to support Sifu and improve wonderland for everyone. I am open to feedback from others in the community, including Sifu, on the ideas I have proposed here. I believe this is important to the future of the DAO, and I would ultimately like to find a way to leverage my skills in a way that will help Sifu.