Of note, I do hold the power to publish this as a proposal directly if that’s ok. I would be copy/pasting this exact post. I do recall needing a certian number of votes/etc from documentation on proposals before moving to an on-chain vote so I just want to make sure I’m doing this right.
If it’s ok and everything in this post looks good to go I can submit it for a vote now however, as I have the requisite tiny power as I’ve been building it to push rewards to fasset pools to try and draw liquidity towards them and make them competitive with their base-asset counterparts.
Abstract:
Pushing diversification in the Tinyman treasury for future endeavors as well as deepening ties to other defi platforms with community governance tokens being of particular importance.
Objective:
Tinyman for now is dependent on fee revenue from platform usage, this proposal would overtime shift the treasury to a more diversified and secure ground to build on, as well as supporting our partners in the Algorand ecosystem.
This fund could go to such endeavors such as a previously mentioned proposal to get Tiny listed on cexs, however such a move would also require planning and budgeting to support that with advertising and such to promote buys and onboard more into the community and exploring the ecosystem. Such an endeavor would need a more mature and stable treasury.
Background:
Diversification of treasury funds is an important step towards self-sustainability of the Tinyman platform as well as the planning of future growth initiatives for the project. Not all prices move as one, and occasionally gains should be moved from more risky projects to more stable ones in the event of a downturn of prices in any particular sector.
Details:
Building a fund provides exposure to assets other than Tinyman, as well as periodic re-balancing and taking profits in the form of stable coins to ensure funding for the long-term planning of the following: branding, advertising, ecosystem growth, and rewards for user and keeping the assets in stable-LP pairings until needed offers liquidity to the platform rather than simply having assets it in a wallet.
Proposal Mechanics:
Much like our previous BBB TINY initiative this plan would align the platform towards a more sustainable community fund and provide some security in the event of market swings.
Likewise diversification can help build community and support within the broader Algorand defi ecosystem. As a limited example: Holding a portion of the treasury in the upcoming FOLKS token both helps grow the platform as well as giving Tiny users a stake in the governance of said platform.
Expected Outcomes:
Increased assurance of a maturing treasury will help encourage more locking of Tiny to have a say in how these funds are used, tokens providing a similar path towards price stability as our established BBB program.
Implementation Timeline:
The addition of LP tokens be added every month, or two months and re-evaluate every quarter or so to see how things stand to be a good first few steps in this process, without much platform risk. As these funds are established and the platform continues to grow future Governance votes can adjust as needed.
Significant milestones would be an establishment of x token/LP as a % of the Treasury. As an example:
- goBTC/wBTC making up 3% of Tinyman’s total treasury, then rotating to another pair as needed.
Eventually the goal would be moving towards stable pairings that give us the equivalent value of holding a single asset and add more diversification, example:
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goBTC/wBTC
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goETH/wETH
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tALGO/ALGO
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GOLD/USDC
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SILVER/USDC
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TINY/goBTC.
Addition or Modification of Assets:
Should other assets of interest to the community open up, these can be added (or subtracted) from time to time as warranted with other community Governance votes (an example would be Meld Gold is focused on bringing Silver/Gold assets on-chain currently but has tokens like Meld Palladium and Meld Platinum that could be added once they go live).
Benefits:
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One of the avenues to reduce selling price pressure on Tiny is building more ties to other defi community members, (FolksFinance, MeldGold, AlgoMint) as well as providing a more diversified treasury and making sure Tinyman has the funds for the future expansion efforts of the platform as guided by governance proposals and votes.
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Showing the overall Algorand community that Tinyman is making efforts to mature it’s treasury holdings will provide both assurances as to Tinyman’s long-term financial health and our ability to expand the platform,
Metrics for Success:
- A rise in overall stability in token price, as well as reducing Tinyman’s entire treasury reliance on just Tiny price-action.
Budget and Funding:
- Funding from this program would come by redirecting 50% of our current fees allocated to the BBB program to this proposal.
Two pools were selected from forum discussions inorder to start this treasury transition without having much of a risk to overall liquidity yet are still important token pairings to both Tinyman as a platform and our building a stable treasury:
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Tiny/USDC
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USDC/goBTC: