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.
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 stablecoins to ensure funding for the long-term planning of the following: branding, advertising, ecosystem growth, and rewards for users.
- Proposal Mechanics:
Much like our previous re-buy and burn 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 launch both helps grow the platform as well as giving Tiny users a stake in the governance of said platform.
Discussions between defi platforms for commitment to long-term holdings of related tokens will help build a stake in each other’s success, help provide a floor for token price, strengthen the argument to support related initiatives (such as listing Tiny on Folks for depositing) as well as help lead new users who begin in one defi platform look into others expanding the potential for Algorand as a whole. An example is you can use Tiny’s LP’s to collect yield in the form of rewards and fees. Other options being Meld Gold’s Silver$ and Gold$ tokens or CHIPS (which would also supply a daily CHIPS drop and share of casino profits that could continually be staked until a desired minimum threshold is reached). I myself would have never found Tinyman if I’d never started poking around Folks Finance. I’d never explored Aglo Casino if I’d never ventured into Tinyman. Tinyman made me realize the potential of LP’s as source of growth, for my portfolio and for Algorand’s metrics and growth.
Often times I hear of excitement in the community over x or y’s forthcoming plan and the hope it will lift all of our boats as Algorand users (particularly those in Algorand Governance), however as we can see from the chart, Algorand has continued to bob up and down. I’ve often considered the main issue being far too many circulating tokens chasing far too little ways to use them (or prompting users to use them). Algorand Defi Gov was what prompted me to explore, because I wanted yield, and I often wondered why even with generous carrots of expanded rewards so few govs seemed to utilize defi (other than leveraged borrowing, something that I’d argue is less useful than users exploring the uses of ASA’s, depositing, lending, and such actions.
Example: Take Tinyman’s Gov locking mechanism. I would propose a vesting period of partner tokens/andor/LPs. Rather than one timeline akin to Tiny’s Gov I would suggest being able to commit in batches with the rewards adjusted for said time of lock (say being able to pick 1 year for A/B LP, and 2 years for C/D LP or vice-versa, and adding to those locks over time as your position grows).
- Expected Outcomes:
Long-term lockups of platform governance tokens and LP tokens provide a similar path towards price stability – much like our already established buy back and burn initiative. Much like another proposal here of locking LP tokens for x time in exchange for voting power, as well as said proposal provides yet another use for Tiny other than selling.
- Implementation Timeline:
I would consider a rolling lock-up of voting and/or LP tokens (say TINY/FOLKS LP, Tiny, Folks, Tiny/USDC LPs, USDC, goBTC and or USDC/goBTC LP) 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. As these funds are established and the platform continues to grow Governance can adjust as needed.
Significant milestones would be an establishment of x token/LP as apart of the Treasury. (Say to start, 3% goBTC and or 3% goBTC/USDC LP from the current 100% Tiny treasury.
2% FOLKS, 2% ALGO/FOLKS LP, etc).
Once a base-line is established, Gold/Silver/CHIPS could be expanded into.
Any attempts to stabilize Tiny’s price, lock ups for gov voting, could lead to selling from other users wanting to lock in gains, so to counter the rollout would have to be planned to minimize market swings – although I think this is something everyone can agree to as being a goal regardless.
Benefits:
Another avenue to reduce selling price pressure on Tiny, building more ties to other defi community members, as well as providing a more diversified treasury.
Metrics for Success:
A rise in overall stability in token price, as well as reducing Tinyman’s entire treasury reliance on Tiny price.
Budget and Funding: This would have to be worked out after initial diversification plans for what tokens to include take place.
Additional Information: The only real comparative action other platforms have that could be used that I know from my own experience is Folks current community treasury. I’m sure others exist but it’s the only one I’ve personally been involved in for quite a while now.
- Yes, this is an interesting option to explore
- Nah, this is not a worthwhile idea
Anyway, thanks for reading guys, if anything seem unclear ask! I have rather severe ADHD and communicating what is in my head to others can sometimes fail to hit the mark, especially in a format such as this. However I’m really interested in overall thoughts from the community.
