Treasury
"The wheel in the sky keeps on turning."
Last updated
"The wheel in the sky keeps on turning."
Last updated
At its core, the DAO is an investment vehicle powered by it's treasury which aims to:
By investing in external governance power such as veNFTs the DAO can then internally subsidize farming yields for participants while also ensuring deep liquidity for the $BOL token. This effect can be strengthened by locking farming rewards that the POL earns. Governance power of other protocols can be obtained by either being early or finding good deals on OTC markets.
The treasury will strive to retain a strategic reserve that will be deployed for opportunities that are presented to invest in new and upcoming projects that prove worthwhile. As these investment mature the treasury can either put them to work in such manners as staking or using them to create LP and farm rewards, or potentially sell small amounts in a healthy and wise fashion that will not harm the underlying project. The gains from these investments can be used in a number of ways including distributions or buy-backs.
Whenever possible the DAO will consider the possibility of spending strategic reserve for buy-backs of $BOL when the timing of such is wise and appropriate. The tokens acquired from buy-backs can be utilized for distributions, burning to decrease total supply, or creating more POL to keep the flywheel spinning and deepen liquidity.
Renting and leasing liquidity is never the best play in the long term. When a project owns the majority of it's token liquidity, the system becomes more efficient. The treasury will constantly strive to continually increase the amount of POL it will control and strategically deploy that POL across a myriad of networks and DEXs. These liquidity pools will be diversified in token pairings in order to help drive arbitrage which will in turn generate more fees for both the DEX and LP providers, but also for the DAO via the transfer tax. This will reinforce the external governance ve(3,3) flywheel while ensuring there will be an abundance of rewards for community members that provide liquidity.
The Blackhole DAO is designed to be a community project and effort. If the DAO is eating, so shall the DAO members. In this spirit, a distribution method has been created in order to provide greater returns to those that wish to actively take place in governance. This method is named the Photon Sphere.