[RFC] - Treasury Allocation Proposal (TAP)

[RFC] - Treasury Allocation Proposal (TAP)


The scope of this proposal is to establish a treasury allocation policy as a guide for elected officials to work within DAO approved guidelines.

Link to previous [DAO Discussion]:

[DAO Discussion] - Treasury Allocation Proposal (TAP)


The purpose of this proposal is not to specify how treasury funds should be allocated or deployed at all times. Rather, it acknowledges conditions that are predetermined to be generally accepted by holders in the current market environment. Therefore, management will have more discretion and the community’s expectations will be aligned.

Due to the current market’s condition, it is believed the treasury allocation parameters should maintain moderately risky positions with a majority of stable coins.

  • Implement the TAP
  • Yes, but see my feedback below
  • Make No Changes

0 voters

High Level Overview:

Guidelines will be provided on the following components:

  • Stable coins
  • Directional
  • Seed Investments
  • Treasury - Farm split
  • TAP and adjustment procedures.

Provide Low Level Details:

The allocations below are based on the current treasury value:

Treasury value for current allocations
$129,519,680 ($108,652,438 liquid)*

Stable Coin Assets

A range between 45% -75% of liquid assets. A list of Stable Coins for reference include, but are not limited to, USDC, USDT, DAI, MIM, BUSD. Community strategy % goal: eg: 10 - 15% APR

  • Between 50% and 80% of Stable Coin Assets should be deployed in yield-generating positions, whether possible.

Directional Assets

A range between 10% - 40% of liquid assets in Blue Chip positions.

  • No more than 20% of liquid assets should be allocated to any one directional asset at any time.
  • No more than 10% of liquid assets should be deployed when initiating a new directional strategy without governance approval.
  • No more than 10% of liquid assets should be allocated to shorting strategies at any time without further DAO approval.
  • 80% to 90% of Directional Assets should be deployed in yield-generating positions.

Seed Investments

A budget of 15% of liquid assets should not be exceeded per quarter. Capital investments in the early stages of development of a protocol or product are known as seed investments.

Seed assets are also subject to redemption restrictions as per WIP 9 & 18.

To fall under “seed assets”, the investment does not require equity as a result. A Simple Agreement For Future Tokens (SAFT) investment would also qualify.

Procedure for Treasury Profit vs Wonderland Farm Split

There is currently no formal procedure in place to determine which funds should go to the treasury and which should go to the Wonderland farm. Currently, all funds are directed to the Treasury and the council votes on the farm allocation. The following default percentages for future revenue and token allocations are proposed:

Upon the realizing of profits, including seed investments

  • 75% of the profit that is generated through the use of strategies shall go to the Treasury.
  • 25% of the profit that is generated through the use of strategies shall go to the Wonderland farm.
  • Proposer shall receive their percentage reward before allocating, when applicable.

Farm allocations are also subject to redemption restrictions as per WIP 9 & 18.

Note that the rate at which the amount allocated to the farm will be handled by the relevant elected officials to ensure a more stable and sustainable return.

Implementation of TAP

At a minimum, the team should deploy an updated TAP once every quarter, whether market conditions have changed or not, in order to maintain a stable record and establish a regular pattern of communication in this area.

It is recommended to have the new TAP done following quarterly redemptions given how the treasury could be affected by it. However, regardless of the proximity to the previous or next quarterly TAP review, a new TAP can be deployed whenever the management team believes there is a need to change the current allocations (e.g. market conditions, potential investments, etc).

Council Adjustments

In order to improve the farm’s balance or health, the treasury council may adjust the split internally by vote. Following the council vote, the Risk officer will make a final determination.

Before being put to a vote, the team should engage the community to gather feedback on the potential changes. If a vote is passed, the team should notify the DAO members as soon as practicable.

If an asset outside of cryptocurrency or digital assets is acquired the treasury-farm split will be determined on a case-by-case basis.

Business requirements of the implementation of the proposal:

No special requirements are required to implement this proposal.


Good to go, clear guidelines for anybody that wants to propose and the treasury team :+1:


Diversification mitigate the risk in this current market condition, solid proposal, let’s move forward!


I do not speak on behalf of The Ferengi, but I approve this proposal.


I too do not speak on behalf of The Ferengi, but I approve this proposal.


This is a great step forward for decentralized treasury management and communication with the community. This kind of system can provide a lot of useful info to members, giving them insights into remaining budgets for potential investments as well as help them better understand the DAOs stance on risk due to market sentiment in any given quarter. It will be very important to monitor market conditions to be sure a new TAP is deployed when the bear finally starts snoozing.

I would love to see treasury reporting alongside future TAPs as well, like a report of the last quarter attached to the TAP for the upcoming quarter. This would be a natural time to provide reports each quarter and could give members a thorough perspective on how well the DAO has maintained alignment with the last TAP.

I can’t say this enough - I am so impressed by how well the DAO has been handling self-management, and the current team has been absolutely slaying. Thank you all for being so proactive and effective.


I’m always happy to read proposals which take Wonderland a step forward, good job.


Solid, clear, and uplifting horizon in this environment.


Not sure who this Ferengi is people speak of but LFG. :rocket:


From the discussion yesterday, specify a period for profits to be calculated/shared. Most likely quarterly to align with the rest of the treasury management.


Topic has been approved for WIP:

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