Gentle Monkez is a project with active rewards utility. The project will focus on giving back to the community through community games, raffle prizes and giveaways. To achieve this, a community treasury will be established. The treasury will be made up of Rewards Treasury, Yield Treasury and DAO Fund.
TREASURY
Community Treasury is divided into 2 main parts;
Yield Treasury: 40%
Rewards Treasury: 40%
DAO Fund: 20%
Rewards Treasury
Rewards Treasury will consist of ADA dedicated for raffle prizes. If our public mint sells out at 100%, the treasury will be allocated with around 23,000 ADA. With the proposed raffle and trivia prizes (475 ADA/wk) to holders, the treasury is projected to have a runway* of around ~48 weeks. With the addition of funding generated from Yield Treasury and royalties, this runway is expected to stabilize in the long term, assuming raffle prizes do not increase in quantity nor value. The team will maintain the Rewards Treasury’s runway threshold of at least above ~24 weeks at all times.
*Runway is the Rewards Treasury divided by weekly rewards given to holders.
Yield Treasury
In order to optimize the returns on the Yield Treasury, we will be allocating the funds as follows:
Liquidity Pools: 60% - We will be providing liquidity for Sundae-ADA pairing when the dex is live. Fees and yield earned will go to Rewards Treasury eventually.
ADA Reserves: 30% - We will be reserving ADA to replenish our Rewards Treasury if it drops below the runway threshold.
Stable Coin Reserves: 10% - An emergency reserve will be utilized during market dips to capitalize on potential returns.
DAO Fund
Gentle Monkez NFT holders will have the power to vote and decide on how best to allocate and utilize the DAO fund. Investing into new NFT projects, sweeping floors of undervalued projects, or purchasing bluechip NFTs, the choice is up to the community! The DAO will eventually elect members of the community into the DAO council to help manage the Fund and represent the Gentle Monkez DAO.
PURPOSE
Our purpose of setting up the treasury in this manner is to ensure that the Rewards Treasury is never depleted. Since the welfare of our community is our top priority, we will avoid overly risky investments that can potentially cause irreversible losses. Thus, our choice into allocating the treasury into the assets stated above.
While we recognize the risk of impermanent loss through providing liquidity, the fees earned, combined with that of yield generated from staking and royalties from secondary sales, will ensure the long-term sustainability of our treasury.
While the Cardano DeFi ecosystem continues to develop, we will continue to explore yield-farming strategies that will add value to our treasury. In the long run we hope to dedicate a heavier percentage of the treasury into more Cardano DeFi protocols to further increase returns for our holders.