BIP-013 - Crypto Investment Committee
Status: Passed
Author: n00bleLAND & CryptoChicca
Discussions-to: Hideout forum
Created: November 3, 2021
Buzzed Summary
BIP-003 approved investment through the following honeypot allocations:
30% metaverse content
20% NFTs (via Investment Committee)
10% NFTs (via community proposals)
20% DeFi Content
20% Spending Reserves (as ETH)
To give operational support to help implement the above strategies from BIP-003 we need a Crypto Investment Committee who can make decisions and implement those decisions. This proposal is to provide operational guidance / permission to help that initiative.
Abstract
A Crypto Investment Committee will be formed to allow the investment (both short term and long term) into cryptocurrencies with funds from the Honeypot. Also this will help facilitate honeypot areas like Metaverse who require non-eth crypto in order to purchase land for the metaverse initiative. It will also enable an in house solution so that these matters can be acted on in a timely matter, as crypto moves fast.
Motivation
Currently the Buzzed Bears are not exposed to the cryptocurrency market other than through its Metaverse investments with MVI token. This proposal aims to provide a way to gain exposure to the large upside that exists in the market, and approach it similarly to the functionality of the NFT Flipping Committee.
Recently, BBH commenced a metaverse discussion and while working through that discussion the price of $SAND rose from .60 cents USD to over $3.00 USD. As there was no proposal yet in place to determine the strategic direction, no crypto was purchased. This is a missed opportunity. If there was a Crypto Investment Committee who were able to seek feedback from Bears and invest for the benefit of BBH, this could be avoided next time.
Also, this will help when we need to sell an asset as a vote can go up within discord to be acted on quickly. So this provides a protective mechanism to all Bears, so all decisions can be public and open. It also allows the Hideout to make the best decisions in the remainder of the bull run to give the Bears the best chance of monetary success over that time.
Specification Overview
It is proposed to mirror the approach that has been approved for the NFT Flipping Committee as that was previously supported. It is therefore suggested that a discord channel be opened for bear crypto chatter and then one opened for bear crypto decisions. That way requests can go into chatter and decisions for voting can go into the decisions channel. It is also suggested that there should be leads for this, “Crypto Gods” that can initially commence with @DefiJesus @Mesk85 and @BuzzedMo who currently have multisig access, and be expanded to two other trusted community members, to enable the timely action of crypto decisions across all timezones. Voting for the two other members should take place within discord through a nomination process and then a subsequent BIP, following the recent successful approach with the NFT Flipping Committee Apex Leads.
The following are some suggestions on how procedure may work, pulled from the NFT Flipping Committee.
The committee will be responsible for coordinating buys, filtering suggestions, and organizing group votes for investment moves related to the Crypto Investment Committee
They will manage the eventual sales of crypto owned assets
They will coordinate recommendations from other investment committees on crypto that is required to be purchased to facilitate other honeypot actions
They should set emergency sell parameters. These would be a failsafe if there are significant drops in prices. For example, an emergency sale could be triggered to save the honeypot from larger losses without the initiation of a scheduled session.
Organize a weekly check in to discuss what to buy, what to sell, what to hold. This could be a pure share of information that Bears could use for their own personal investments.
Establish situational based rules which might include: a) Minimum/maximum time of holding: This prevents selling before pricing may be fully established or holding too long. Min/max determined prior to purchase and disregards emergency sell parameters. b) Target sale price. Once target hit, can either sell immediately or wait to sell until the market begins rolling over (likely above but no less than target). Such targets and planned actions determined prior to purchase, may or may not be subject to min/max time parameters. c) Voting procedure to decide if a crypto asset that was designed for a short-term hold or becomes a long term hold (potential blue chip)
Such strategic elements cannot be disclosed broadly as they can be copied or gamed. I believe purchase/sell strategy can and should be disclosed upon position exit, with proof/validation of adhering to strategy. Basically a neutral (non-CryptoGod) party within the community that can validate strategy was adhered to without disclosing broadly, akin to a judge.
Community at large can pitch ideas, vote on purchases and elements of strategy. Finalization and execution of strategy may be guided but not dictated by community
The Crypto Investment Committee will determine a suitable name to call itself within discord so all understand its purpose.
To repeat: the above are SUGGESTIONS and will be actual procedures to be decided by the Crypto Gods once they have been elected.
Rationale
The reasons for this proposal are :
There is potential to grow the honeypot at a faster rate than it is currently growing.
We have enough brain power and crypto experience in the Hideout that should not go to waste.
Massive economic upside.
Protection from loss when needing to enter / exit positions.
Technical Specification
This is an operational guidance proposal, to enable decisions to be made within the Crypto Investment Committee, as governed by the Crypto Gods. The Bears who request to be part of the Crypto Investment Committee can elect to hold a vote (not required) on the crypto asset ideas suggested in an informal way within the committee itself, whether by thumbs up/down, or as determined by the Crypto Gods to give best effectiveness to the outcome. The Crypto Gods will have the final decision to act on behalf of the committee keeping in mind the best interests of Bears and the popular community sentiment.
The following is the process for the initial election of the Crypto Gods:
Create a dedicated Discord channel for the Crypto Investment Committee
A. This will be dedicated to the governance of the Crypto Investment Committee and will serve a different purpose from the crypto chatter channel.
Within this new channel, nominate either yourself or another Bear to be put onto the ballot for the role of APEX Flip Lead. Tag @n00bleLAND and @CryptoChicca when making your nominations.
@n00bleLAND and @CryptoChicca will compile the list of everyone nominated.
All nominations will be voted on in a formal Snapshot.
Top 2 vote winners will become the first APEX Flip Leads alongside @defijesus.
Test Cases
The Hideout has run a very successful pilot for NFT flipping and there are skills in the community to enact a Crypto Investment Committee mutilising the learnings of the NFT flipping committee already underway. This will yield profits and promote further engagement among the community members.
Copyright
Copyright and related rights waived via CC0.
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