DAOhaus proposes to convert CCO funds earmarked for the third and final Transmutation from ETH to DAI in order to lock in sufficient runway in the face of declining market conditions.
There is no sugar-coating it: ETH price has declined nearly 65% since the CCO contribution phase. The CCO mechanism favors contributor flexibility over runway certainty, and our runway is experiencing the downside risk of that concept. Our runway currently covers only ~4 additional months of building.
Further, the unfavorable market conditions are not likely to materially improve in the short run, and there is considerable risk that they continue to decline.
In light of these shifting conditions, DAOhaus has already modified the HAUS:WETH transmutation ratio to more closely resemble market conditions.
For Transmutation #2, the new transmutation ratio is 200 HAUS per ETH, double the rate of HAUS from Transmutation #1.
DAOhaus is also taking active steps to constrain focus to top priorities and reduce our burn.
To mitigate the risk posed by the precarious market conditions, we propose to: convert the final remaining third of ETH in the CCO DAO to DAI.
Once converted, the DAI will be returned to the treasury to maintain CCO contributor ragequittability in line with the CCO mechanism.
Together with our reduced burn, this will lock in runway for 6+ months, sufficient to ship DAOhaus V3 infrastructure, developer tools, and core apps; bringing Moloch V3 DAOs to communities and builders.
Lacking opposition, within the next week DAOhaus will initiate an on-chain proposal in the CCO DAO to move the ETH to a minion, swap it to DAI, and then return the DAI to the CCO DAO treasury.