[DAO Discussion] - Establish an Independent 'Feeder Fund' to Reduce Risk and Improve DAO Management & Reporting

I am giving this discussion one more shot given the developments that took place after my original proposal. This proposal is intended to alter the management of Wonderland’s DAO at a foundational level, and mitigate situations before they result in mistrust across the community. 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 portion of the DAO to be managed separately from Sifu (or any treasury manager), in effect creating a ‘feeder fund’. By taking this approach it would allow a portion of 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, and to mitigate ‘key person’ risks that are created in the current state. It also allows folks like Dani and others to scale their 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. Funds make better decisions and generate higher risk adjusted returns when multiple unique thought patterns coexist.

Additionally, there are 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 status quo. 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 any one individual from having to do all of this. It would also create the opportunity for the treasury and community to have another partner (perhaps multiple), and to create a plan for succession over time. This reduces the risk of panic in the market should a tough decision need to be made or if a mistake is made. Candidly - this should have been the structure from the onset and I believe it will become a model for how DAOs should operate in the future.

To be specific on this, I would like to propose that I manage this initial ‘feeder’ fund on behalf of the DAO, helping to support the team and improve Wonderland for everyone. I am open to feedback from others in the community 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 best. Lastly, I would be happy to meet Dani or any other members of the existing team at Wonderland in person as desired by them and/or the community.

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Hoping to get some feedback from the community here. For a TLDR on this proposal: “Put me in coach, I can right this ship before it sinks further.”

Perhaps one treasury fund specifically for stables and the other for speculative assets?

hey Frank how do we know your credentials and success in this endeavor? can you share more about yourself and the how it would be structured based on the current treasury we have. Thanks for the idea!

Thanks for the feedback. I am willing to provide more transparency regarding my background, though it will be tough for any qualified individual to put themselves on display assuming they have an existing career. We have been discussing this offline, though I would propose detailing my credentials to one or two existing members of Wonderland management, and having the community nominate them to allow for an unbiased opinion.

That said, I believe the right person (or people) for this role require experience in both tech and finance. I will share at a high level my experience and keep it as vague as I can. The list of people becomes quite short if I get too specific, and I do actively work in one of these areas. My background includes time spent working at 1) one of the largest investment banks, 2) one of the largest asset management firms, and 3) one of the largest big tech companies.

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