Decentraland DAO Proposes Stopping Grant Program After FTX Crisis

The Decentraland DAO is voting on whether to halt its grants program temporarily and review its organization.

The proposal, which was put to the vote on Wednesday, raises issues with the organization’s treasury holdings’ variety as well as the absence of defined grant-making policies. Any community member can use the program to submit a funding request for work to enhance the platform or add new features.

The proposal states that the DAO treasury currently has $19.3 million in assets, 99.1% of which are held in MANA, Decentraland’s native cryptocurrency, and 0.9% in other tokens. The proposal refers to the risks that failed cryptocurrency exchange FTX took before filing for bankruptcy when presenting that data.

“One of the largest lessons we can learn from FTX’s collapse is that overexposing one’s treasuries and assets to a single type of asset as your primary source of funding and liquidity, is a major risk.”

In February 2020, The DAO announced a plan to gradually boost its treasury by vesting 222 million MANA tokens over a ten-year period. The DAO has invested around 61 million tokens so far. As of Monday, when the survey is set to finish, 62% of respondents support the break.

The proposal states that further grants could increase sell pressure on MANA. At the time of writing, MANA is trading at $0.407.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

Coincu News