Vary Investment Strategy - dissolve investment committee and fund crypto committee

Status: Draft Proposal Author(s): CryptoChicca

Created: 30 November 2021

Discussions-to: Comment below please

Implementation (optional): Immediate. ‌

Buzzed Summary

To dissolve the NFT Investment Committee and reallocate the remaining Eth funding to the new Crypto Investment Committee.

Abstract ‌

Recently, the idea to dissolve the Investment Committee has been brought up by a number of bears, citing poor performance, poor engagement, lack of AMA and lack of marketing. There was a proposal by SQ X to dissolve this committee, which bears support. See, Vote to Disband The Investment Comitte

It has been a few months since we passed BIP-003 with an original intention to simplify the honeypot allocations in an investment strategy, allowing:

  • 30% Metaverse Committee
  • 20% Investment Committee
  • 10% Community NFT Fund
  • 20% Defi
  • 20% Spending Reserve

Bears have been working on the above projects, and I have done a estimate of honeypot expenses (see attached spreadsheet - BBH HoneyPot Investments - Google Sheets

The first tab provides an overview of our expenses and current available funds, as per the chart below (from 19 November, 2021). The Investment Committee tab highlights the investment committee purchases and current floors, to give you an idea of its status.

Recently, we passed a proposal for a Crypto Investment Committee, BIP-013, to help facilitate bears in their projects that needed to buy crypto. What has become obvious from questions in the newly formed crypto committee group, is that bears want the honeypot to invest in crypto and there is a lack of clarity around where the funds for the ‘crypto’ investment come from. That is not a criticism of the original proposal, as the original proposal is fantastic. This is just an observation of time, and the movement bears have been making, an opportunity for us to revisit the strategy and add a bit of extra clarity. It also helps any bear to answer the questions in the hideout with certainty and rigour behind the answer, to ensure we are following good governance standards. Therefore, the proposal is to add a category to the investment strategy labelled ‘crypto’.

Specification ‌ Overview ‌

Based on my review of our honeypot finances, at 19 November, our honeypot has:

  1. 59.422 Eth committed to NFT purchases through the NFT community fund and the current investment committee. Of that, 8.9798 Eth remains available for NFT purchases in the NFT community fund. Also, we also have 35.899 Eth invested in metaverse NFT projects. That is a total of 95.321 in NFT from our original 250 Eth balance, being approx 38% of our honeypot value, with 23.77% in the NFT community and investment fund and the remaining 14.36% in NFT metaverse bucket.
  2. 27.45 Eth committed in MVI and MANA (metaverse crypto purchases). This is approx 10.98% of total honeypot funds.

Therefore, to provide an opportunity to enhance our honeypot during the upcoming bull run, I suggest that we reallocate the balance of the Investment Committee funds, being approximately 15.578, to the Crypto Investment Committee. This would be a 6.2% risk in crypto purchases within that committee. Also, given the performance of our current crypto investment, which is up 2-3x, and because we are investing a proportion of the spending reserved into defi until required, I suggest a further option to move 10 Eth from the Defi fund over to the Crypto Investment Committee, and allocate 25.578 Eth to other crypto in total for this fund, to capitalise on this leg of the bull run, being a 10.2% exposure in crypto from this fund. This is in addition to the 10.98% investment in crypto that exists in the current metaverse fund.

If bears support this proposal to reallocate a portion to crypto, the majority vote will determine which option is presented to BIP, either the approx 15 Eth or 25 Eth.

This will make the new investment strategy as follows:

  • 30% Metaverse Committee
  • 23.77% Community NFT Committee
  • 6.2% or 10.2% Crypto Investment Committee
  • 16% or 20% in Defi
  • 20% Spending Reserve

The variations to the crypto and defi figures above represent the two different options for allocation to the crypto investment committee. Also, it must be noted that 80% of the spending reserve is allocated to short term defi, to increase our Eth bags, so we have an additional 40 Eth from spending reserves also sitting in defi.

Please vote as follows.

Vote 1: This is for the clarity around having a pool of funds specifically set aside for crypto purchases in a crypto investment committee.

Do you want this proposal to go to BIP?
  • Yes
  • No

0 voters

Vote 2, if you agree with vote 1, this is a decision on whether there is approx 15Eth or 25Eth allocated to the crypto investment committee

How much do you want to reallocate to the crypto investment committee?
  • 15 Eth
  • 25 Eth

0 voters

Rationale ‌

The reasons for this proposal are:

  1. Enhance honeypot during the upcoming bull run
  2. Provide clarity to the Investment Strategy, BIP-003

Technical Specification ‌

  1. Reallocate crypto funds to a crypto investment committee, with amendment to the investment strategy for BIP-003.
  2. Remove Troppo and GFunk as signatories for the investment committee wallet
  3. The NFTs purchased through the Investment Committee to remain in current wallet until further change 0x3b762b6a03b5a0772c2d64e1d05e5b77d841c0b4
  4. Control of the buying / selling decisions related to the Investment Committee purchases shall be vested in the NFT Flipping Committee, current led by apex defijesus, looping and SQ X

Test Cases ‌

Bears have made good purchases for MVI and also MANA, with 2-3x increase in Eth balances over the past 1-2 months. This shows the potential for buzzed bears to increase honeypot Eth funds through a small risk exposure investment in other crypto than Eth.

Copyright ‌

Copyright and related rights waived via CC0.

Do we have seasoned traders? crypto moves fast. and much has been said about nhow we are not here to trade it…

we caught a massive bull run in MVI and MANA. was this luck or skill… (a saying in trading goes… rather be liucky than good)

personally i think “SMALL” amount for crypto. committee. simply because of the massive risk. 5 MAX… we already have crypto baked into everything we do. AND technically I think this is an overlap with DEFI.

For these reasons i have voted no.

We can always reallocate more funds if we are crushing it… but for instance. trimming MVI and MANA to fund more coin purchases is my preferred method…

Yeah - I actually agree with @SQX10 on this. Also, I am thinking that we can put more funds into other projects that will really launch the brand and bring some serious trading volume. But if we allocate anything, maybe starting with 5 ETH is safe. If we have some seasoned crypto traders than it could be a cool way to really grow the honeypot, but without that I agree that its a risk.

I do think it is imperative to disabnd the IC though.

Yes super good feedback. We only have the ability to long hold at the moment. If we have someone put up their hand offering to day trade for us, then we can facilitate this, but otherwise it would be more like month to year investment type options. So people need to be aware that we can’t simply just jump in and buy crypto etc we actually need people to offer and lead it. I am hoping through this process that will happen, and maybe we can chip off a small amount as a test run, and have a combination of a short and long term hold, kind of like we do with the NFT, or we can say we tried we put it out there, but we don’t have a volunteer to run it at this point in time, and then its a future discussion for bears. I am good with whatever we decide. Ideas are great, discussion is important, but bears to implement are vital to our success. So anyone reading this, if you’ve got a significant crypto trading background, let us know. Also, @SQX10 you do heaps, and I know your background, so don’t think that this is directed at you in anyway, you do so much already. If you want to by all means, we can always swap things around or work things out, but just want you to know I am not throwing this out there to get you on board haha just more want people to know that we gotta work together for our success as a group. Thank you both for your feedback, its super good.

I think at this point in time, there isn’t enough support to proceed to a BIP for an investment in crypto, so we will leave this here, until someone at a further point wishes to take this up as a lead, that is able to day trade and keep on top of movements.