Recently, Instadapp announced the launch of its new retail focused smart contract wallet Avocado, along with a statement that 10% of all gas fees paid by users would flow to the DAO treasury.
This announcement was in line with a more general desire to provide the DAO treasury with funds and put it at the helm of the Instadapp ecosystem and operations. In the future, the DAO could use these funds to start funding community initiatives or even distribute dividends to $INST holders.
I am therefore suggesting to distribute all revenue streams generated by Instadapp products to the DAO treasury from here on onwards.
Today, this includes the Flash Loan Aggregator and Lite vaults and would also apply to any new protocols or products within the Instadapp ecosystem in the future.
If this proposal passes the Instadapp team will start by transferring past revenue in the sum of $1.3m in $ETH, $WBTC and stablecoins from the FLA and Lite contracts to the DAO treasury.
The contract addresses for these products are as follows:
I encourage all members of the Instadapp community to comment and engage with this proposal, as it represents an important step towards ensuring the long-term health and success of the Instadapp ecosystem.
great proposal ofcourse, big step towards more utility for INST besides governing instadapp.
i wonder when it will make sense to start distributing revenue directly to INST holders, think it would be wise to build a strong treasury first so we have 5+ years of runway for current team and new hires.
I like the intent here, but 10% seems to be a very low number & I am skeptical about how much revenue could be generated from the gas fees. Like think from the user perspective they might add gas fees just to process the txn which would not be a considerable amount & 10% of this is nothing, this will not bring much value apart from media attention with the headline Instadapp gonna share dividends via gas fees
Instead, I propose introducing txn fees happening on Avocado & percentage of that revenue into the DAO treasury.
Do we have any dashboards to see our runway continuously? Would be great for everyone to have access to this data. When @litocoen first wrote their proposal, it would have been way easier to decide.
Also, I would be interested in understanding different impacts of using these funds for the DAO, e.g. what are the implications of using the funds for community initiatives vs. dividends vs. even using the treasury in yield generating strategies to potentially expand the runway in perpetuity.
Thanks for the thoughtful proposal and I am looking forward to continuing the discussion in the future.