Hello BBH Community,
This post will present an alternative Honeypot strategy to what @OverAnalyser proposed back on August 9th. Before I begin, I just want to thank @OverAnalyser for taking the time to write up such a detailed proposal. Without his proposal kicking things off, I surely wouldn’t know where to begin.
Treasury allocation (or strategy) is, very much in my opinion, a fundamental component to the success or failure of our community. So, let us take a step back and lay the foundation first to ensure we have a solid strategy moving forward.
This Honeypot strategy is comprised of and influenced by:
- Feedback from @OverAnalyser’s proposed strategy.
- What Bears are proposing in the #gov-proposals channel on Discord.
- My own opinion on what I think the Honeypot allocation should look like.
After reading over the feedback, I have noted the following suggestions:
- Allocate more than 5% to the Spending Reserve.
- Heavily focus on long-term/flipping of NFTs.
- Allocate more in Metaverse land, not so much in the fungible tokens.
- Buy floor Bears with a small % of the Honeypot.
- Allocate small % to BTC to hedge against ETH headwinds.
- Launch an NFTX index with floor Bears.
To capture sentiment on each of these suggestions, I read over the replies to each (if there were any) and recorded the number of likes. I understand this is probably a rudimentary way of going about it, however, I used the tools I had at hand. For simplicity, let’s first define Sentiment Points. A reply that is in agreeance or receives a like (heart icon) is 1 Sentiment Point. For example, if someone replied to Suggestion #1 with an overall tone in agreeance, this is 1 Sentiment Point. Likewise, if someone liked the post, this is also 1 Sentiment Point.
Suggestions based off Sentiment Points (ordered from greatest to least):
- Suggestion #2 with 6 Sentiment Points
- Suggestion #3 with 6 Sentiment Points
- Suggestion #4 with 5 Sentiment Points
- Suggestion #1 with 4 Sentiment Points
- Suggestion #6 with 3 Sentiment Points
- Suggestion #5 with 1 Sentiment Points
Sentiment in favor of being heavily invested in NFTs and Metaverse land is strong. In addition, feedback showcased a desire for allocating a small percentage of the pot to buying floor Bears and a need to increase our Spending Reserve. We finish up with lower Sentiment Points on an NFTX Index and even lower Sentiment Points for allocating funds to BTC.
A caveat: Sentiment Points only tell a partial picture. I understand that many might not have voiced an opinion or liked a post on subjects they don’t understand or are simply indifferent to. These Sentiment Points are far from perfect, although I think they capture the overall tone, at least in this context.
I have been keeping a close eye on the #gov-proposals channel and making notes on what our community have been actively proposing. The majority of what is being proposed is NFTs, Metaverse land and related content. This correlates with the suggestions’ outcome above. Going off Sentiment Points, Suggestion #2 and Suggestion #3 has implied the Bears want the focus of our Honeypot on NFTs and Metaverse land. I also have seen a few comments on collaboration projects and staking pools.
The way I view ownership of Bears is probably different than most. In my opinion, Bears provide a great way to gain secondary (or indirect) exposure to whatever the Honeypot has invested in. With that in mind, I feel that investments which are outside the scope of obtainability for the average Bear holder should be specific areas of interest. These hard-to-obtain investments can be found in many different places within the crypto space; however, I would argue that most can be traced to NFTs and the Metaverse. For this reason, you will find my Honeypot Strategy heavily focused in NFTs and the Metaverse. The extent of which is similar in degree to that of @OverAnalyser’s.
While I believe the Honeypot allocation should go to these hard-to-obtain investments, I am also a stout believer in hedging against risks and engaging in diversification. I think everyone, including our Honeypot, should hedge their investments against unforeseen headwinds. For me, this hedge can be found in DeFi Tokens and Bitcoin. You will find both having small Honeypot allocations in my strategy.
aBinaryMind’s Honeypot Strategy
As I previously have stated, this Treasury strategy materialized from a combination of feedback from @OverAnalyser’s Treasury strategy, reoccurring proposals in the #gov-proposals channel, and my own opinion of what I think Honeypot allocation should look like. I tried to not let my opinion influence the outcome of this strategy any further than the feedback or the suggested proposals in the #gov-proposals channel did. I am hopeful that this strategy will please everyone to some degree, although I understand that might be asking a bit much.
What I am Proposing:
Metaverse Content at 20%. This is a 5% increase from @OverAnalyser’s Treasury Strategy. Reasoning: my own opinion on the potential for the Metaverse, Sentiment Points on Suggestions #2 and #3, and reoccurring proposals in the #gov-proposals channel.
NFTs (via Investment Committee) at 20%. I decided to keep the 30% allocation into NFTs that @OverAnalyser suggested in his Honeypot Strategy. I just broke this 30% into two different categories. Here, we see 20% allocation to the Investment Committee. Reasoning: Investment Committee has been formed at time of this Honeypot Strategy proposal.
NFTs (via Community Proposals) at 10%. In wanting to keep with the 30% allocation into NFTs, I would like to propose that we allocate the remaining 10% into community NFT proposals. Reasoning: I have seen countless NFT investment suggestions in the #gov-proposals channel. Let’s give the adamant community members the chance to convince us of NFT projects to invest in via proposals.
Income Generating ETH at 20%. This is a 10% decrease from @OverAnalyser’s Treasury Strategy. Reasoning: Sentiment Points of Suggestion #3 suggests a desire to have more of the Honeypot in non-fungible versus fungible assets. 5% of the 10% decrease went into Metaverse Content.
Floor Bear Sweeping at 5%. This is a new area for allocation when comparing my Honeypot Strategy to @OverAnalyser’s. The other 5% of the 10% decrease in Income Generating ETH was allocated here. Reasoning: Sentiment Points of Suggestion #3 suggests a desire to have more of the Honeypot in non-fungible versus fungible assets. Suggestion #4 had high Sentiment Points and there has been plenty of Bears who have voiced their opinion in #gov-proposals on this subject. I believe allocating a small amount of the Honeypot for floor Bear purchases has merit. Some uses that come to mind: NFTX Index, reward these Bears to deserving community members, use them as a giveaway/raffle to aid marketing, or just hold them and flip them back to secondary when they appreciate.
DeFi Tokens (Small/Med/Large Cap) at 5%. This is a 5% decrease from what @OverAnalyser had proposed. Instead of 10% of the Honeypot allocated to DeFi, I propose we break this 10% up into 5% in DeFi and 5% in BTC. Reasoning: Suggestion #5, while the lowest on the suggestion list above, has been debated on in the #gov-proposal channel. I am also of the opinion that a little Bitcoin exposure can be beneficial to the Honeypot.
Bitcoin at 5%. This is another new area for allocation when comparing my Honeypot Strategy to @OverAnalyser’s. Reasoning: Please see DeFi Tokens above.
Spending Reserve (as ETH) at 10%. This is a 5% increase from what @OverAnalyser has proposed in his Honeypot Strategy. Reasoning: Suggestion #1 had 4 Sentiment Points, showcasing Bears’ desire to have more in the Spending Reserve. I also agree with those who have voiced 5% in the Spending Reserve is not sustainable.
Partner Projects/Collaborations at 5%. This is a 5% decrease from what @OverAnalyser has proposed. Reasoning: I reallocated 5% from this to Spending Reserve. Like @OverAnalyser, I really don’t know what this looks like yet or what kind of price it will demand. I can’t imagine collaborations costing all that much, albeit I do admit I am not well versed in NFT collaborations, so 5% for now seems reasonable.
The Pie Chart:
Coming up with a Honeypot Strategy is not easy. Coming up with a Honeypot Strategy that will please everyone is just about impossible. I tried to take the feedback from @OverAnalyser’s Honeypot Strategy Proposal, the suggestions that Bears made in the #gov-proposals channel, and my own opinion to form a Honeypot Strategy we can all get behind. I understand there are going to be allocations some don’t agree on, but I am optimistic that we all will find more that we like than dislike.
I think it is very important that we get a Honeypot Strategy formulated, proposed and voted on, sooner than later. It sets a foundation that we can build on. Once the Honeypot Strategy is agreed upon, we can begin to fill in the slices of the pie. Proposals can come in on Metaverse Content, NFTs (via Community Proposals), Income Generating ETH, ideas on what to do with Floor Sweeping Bears, DeFi Tokens, Spending Reserve, and Collaborations.
Also, keep in mind that whatever Honeypot Strategy we eventually agree upon, doesn’t become set in stone. I would recommend revisiting the Honeypot Strategy every so often and tweaking it, if need be. A simple proposal and vote could make additions, subtractions, or alterations.
I would like to finish this off with a poll. I would like to know how many Bears can get behind this to some degree (either fully or partially) or if they simply can’t get behind it at all because it deviates too far from their vision. I also welcome all feedback in the comments below.
Thank you for taking the time to read over my Honeypot Strategy. I look forward to reading over all provided feedback.
- Yeah, I can get behind this Honeypot Strategy!
- Sorry, but I can’t get behind this Honeypot Strategy.