Q&A: This AIP Wants The DAO To Convert 10% Of Its Ecosystem Fund From $Ape To ETH/ USDC
The ApeCoin DAO is currently voting on an Ape Improvement Proposal that if passed would lead to the DAO converting 10% of its ecosystem fund from $Ape to Ethereum and US Dollar Coin.
AIP-355 titled ‘Reallocation of Ecosystem Fund into Ethereum and USDC’ is an ecosystem allocation fund proposal written by ApeCoin DAO Contributor 0xSword.
“This proposal suggests reallocating 10% of the ApeCoin DAO’s available ecosystem fund into both Ethereum (ETH) and USDC (USD Coin),” 0xSword wrote. “These funds will be utilized for various activities related to operating the ApeCoin DAO, facilitating grant requests, and ensuring the financial stability of the ecosystem.”
As of today, the ApeCoin DAO’s ecosystem fund contains 349,316,353 $APE, according to ApeCoin DAO Special Council Member Waabam. This means that means that if AIP-355 is passed then the DAO will convert 34,933,308.3 $Ape to ETH and USDC.
Further in his proposal, 0xSword projects that it will cost less than $200,000 USD to convert 10% of the DAO’s ecosystem fund from $Ape to ETH/ USDC.
“The cost associated with this proposal is limited to 10% of the available ApeCoin in the Ecosystem Fund and the transaction fees for converting funds into Ethereum and USDC,” he wrote. “The exact amount of the fees will depend on market conditions at the time of execution, and the fees from any service providers responsible for the execution of this proposal but are not expected to exceed $200,000. We request that the ApeCoin DAO administration do their utmost in aiding the Over the Counter (OTC) sale of the coin to mitigate any potential adverse price effects.”
To find out more about AIP-355 and why the DAO should convert some of its treasury, the Bored Ape Gazette reached out to 0xSword for an interview. Check it out below:
1. Can you sum up your AIP in a sentence or two?
“This proposal suggests a reallocation of ten percent of the DAOs treasury into Ethereum and USDC, to be converted overtime at Ape Foundations discretion.”
2. What inspired you to write this proposal?
“The early drafts for this proposal were shared around as a sample proposal, and recently it seemed like a good time to put forward. Feedback during voting is showing that the timing may not be right, however!”
3. How did you come up with the 10% number?
“Ten percent was chosen as a relatively low-amount, mainly to be used at the Foundations discretion for various activities.”
4. What should the DAO know about this AIP before they vote?
"This proposal adds new responsibility to the Ape Foundation, such as custody of the converted funds, as well as token sales. Generally, direction or mandates are required to expand activities, so this proposal gives them that implementation mandate.”
5. Do you have anything else you’d like to add or say?
“Early feedback indicates that many would rather wait until market conditions improve to make reallocations like this, with some people noting recent positive improvements around sentiment and market prices. This type of proposal can be explored in the future again, and probably will!.”
The window to vote on AIP-355 is currently open and ApeCoin DAO Contributors have until Wednesday, November 29th, to vote on this proposal.