Treasury Management & $SQUIG

Core Principles

  • Maintain an infinite time horizon: The treasury should be structured to exist in perpetuity.
  • Ensure inflows exceed outflows: Over the long run, revenue generated should exceed spending.
  • Diversify: Treasury allocations should ensure that critical expenses can be funded even if the protocol token has a significant drawdown.

The $SQUIG token

$SQUIG is our community governance token. It's used for voting on SDIPs and as a reward for contributors to the DAO. Currently, it doesn't have much liquidity. Making the token more liquid is a major focus for the team in 2022, once the DAO has a formal legal structure in place. There are only 10 million $SQUIG tokens, this means we have to be extremely careful, balancing meaningful rewards with very long-term planning. There are no best practices for this yet but they are being developed and the DAO will remain vigilant to our long-term priorities:
  • Distribute tokens to select tastemakers, e.g. holders of squiggles
  • Curate / recruit new creators to the community by buying their NFTs
  • Swap tokens with similarly aligned communities and provide access to mutual benefits like gated content or a tokenized group chat
  • Reward tokens to the most active contributors in the DAO
  • Facilitate an active tipping culture among members to grow the community economy