This proposal aims to swap 1.75 million DAI from AavegotchiDAO’s treasury with an equal value of GHST from Pixelcraft Studios’ balance sheet.
The launch of the Gotchiverse has introduced new and increasing infra costs for Pixelcraft Studios that cannot be paid for in GHST (or any crypto for that matter). These costs primarily consist of usage of AWS and Redis Enterprise for real-time gameplay in the Gotchiverse, and will continue to scale up as the game gets more popular.
To pay for these costs, we have outlined several options:
- Raise funding from VCs
- Liquidate GHST into DAI and swap for fiat
- Use GHST as collateral on Aave to take loans in DAI
- Perform a token swap with AavegotchiDAO
We believe Option 4 (Token Swap) is the best available option at the moment. We strongly value our independence from VCs, prefer not to have debt on our balance sheet, and do not want to market sell GHST acquired from sales.
Therefore, we propose a token swap between AavegotchiDAO and Pixelcraft Studios to ensure adequate fiat runway for several years of further development, no matter how bearish the market becomes.
At the time of this writing, AavegotchiDAO treasury holds roughly:
2.5 Million DAI
3.5 Million GHST
3 Million Alchemica
(live source here: AavegotchiDAO Treasury Balance)
Pixelcraft Studios, on the other hand, is heavily skewed toward GHST with over 6.7 Million GHST in our primary revenue wallet while our only DAI is coming from the curve’s monthly 150k DAI faucet, 50k of which is already earmarked for GHST purchases.
Pixelcraft Studios has been able to effectively grow the team and support infrastructure costs without needing to liquidate any significant amount of GHST. But last month’s launch of the Gotchiverse and anticipated continued growth has pushed operating costs dramatically higher. Server costs for the April playdrop, for example, exceeded 40k USD, and that is projected to grow in the months ahead.
Such operating expenses are anticipated but we have to acknowledge that these subscriptions and invoices almost always insist on trad banking (fiat). We would prefer to not have to sell GHST in order to achieve the necessary growth budget.
STARTING THE CONVERSATION
This is the main thesis of the proposal as written. The ideas, questions and analysis we expand in this thread will help to determine if a SigProp goes to publish and what more can be included under Benefits/Risks categories as well as defining the methodology for valuing GHST in such a swap.
I have prepared a potential methodology that is quite generous toward the DAO. I will share it soon and want to know what you think. Maybe there is an even better way.
Thank you for your consideration, lets discuss!