Hey BBH Community,
First and foremost, I would like to thank everyone who read over my previous Honeypot Strategy and provided valuable feedback. The level of involvement in this community is top-notch !
If you haven’t yet read over my previous Honeypot Strategy and would like to do so, you can find it here:
What’s This Proposal all About?
As the title suggests, simplification. While most of the feedback I received on my previous Honeypot Strategy agreed with what I proposed, some Bears voiced the opinion that funds were stretched a bit too thin in some areas. In addition, some felt it was a bit too complicated and that we could benefit from a simpler approach. After mulling these sentiments over, I agreed. The acronym KISS could certainly apply here. So I went back to work and revised my strategy with simplification in mind.
aBinaryMind’s Honeypot Strategy - Simplified.
As Bear holders, we have the pleasure of gaining secondary exposure to whatever the Honeypot is invested in. With that said, we should be targeting investments that the average Bear cannot obtain on their own. This gives us Bears an opportunity to own the best the crypto space has to offer. The areas we should be collectively targeting are NFTs and the Metaverse.
In the event of a NFT market downturn, a well balanced portfolio can help hedge against unrealized (or realized) capital losses. In my opinion, a good balance between NFTs, Metaverse Content, DeFi Content, and Ethereum can provide stability while still providing immense upside.
What I am Proposing:
Metaverse Content at 30%. Reasoning: the Metaverse has tremendous upside. Many feel that the Metaverse is the next big thing in the crypto space. I agree with this sentiment.
NFTs (via Investment Committee) at 20%. Reasoning: this allocation has already been put into motion at the time of this proposal.
NFTs (via Community Proposals) at 10%. Reasoning: there have been plenty of Bears who have expressed suggestions on NFTs that we should invest in. So let’s give the power to the Bears to propose NFTs they are adamant about. The very nature of our governance system dictates that we must collectively agree or disagree on proposals for the content within the proposals to take effect. If an NFT proposal is made via community member(s) and the community can get behind it, chances are high that we have made a good call, collectively.
DeFi Content at 20%. Reasoning: other than NFTs and the Metaverse, DeFi is another area in crypto we should be allocating some of our Honeypot to. It can provide a steady form of income in the form of ETH, allow us to invest in promising DeFi projects, and provide a slight hedge against a NFT market downturn. With DeFi being just as hot as NFTs and the Metaverse, it makes sense to allocate a portion of the Honeypot to it.
Spending Reserve (as ETH) at 20%. Reasoning: going with a simplified Honeypot Strategy resulted in cutting out some of the suggestions Bears had made. A 20% Spending Reserve gives Bears the chance to submit proposals to allocate a percentage of the Spending Reserve into other areas they are adamant about. In addition, holding Ethereum provides us a liquid reserve to pick up investments when we are in a healthy market pullback.
The Pie Chart:
I know we are all anxious to get this Honeypot Strategy finalized. However, it is important that we formulate a sound strategy first. I think we are very close, if not already there, with a Honeypot Strategy we can agree on.
I think taking a simplified approach makes a lot of sense. It allows us to start simple and increase the complexity as we go. We can learn from our investment outcomes and adjust it accordingly. If not for nothing, a simple Honeypot Strategy should help us all focus a little better on the main objective here: putting the Honeypot to work.
I would like to finish this off with a poll. So, please take a moment and vote. Also, drop some feedback below. I look forward to reading what everyone thinks of my simpler Honeypot Strategy.
Thanks for taking the time to read over my proposal.
- I prefer this simpler strategy, let’s move on to a BIP proposal.
- I prefer your previous strategy, let’s move that on to a BIP proposal.
- I don’t like either strategy.