Endowment progress update, Nov 30

A short update after meetings with the winning Endowment fund, Karpatkey, and the Meta-Gov stewards:

Karpatkey will begin preparing a plan for structuring and managing the endowment, based on the following assumptions:

  • The DAO will keep 2 years runway - $16M in USDC - in its main wallet / timelock account. This will initially be funded by converting ETH to USDC with Karpatkey’s help, and topped up on an ongoing basis by the process described in this draft EP.
  • Karpatkey will structure an endowment to invest and manage the remaining funds, in line with the low-risk approach outlined in their winning proposal.
  • All unearned income will remain as ETH and be invested in ETH-neutral investments.
  • All earned income will be converted to stablecoins, and be invested in USD-neutral investments.
  • Karpatkey will conduct ongoing rebalancing as funds are deposited and as the unearned income balance adjusts in order to keep the ETH part of the endowment in line with this.

With the current ETH price, the breakdown at present would be roughly:

  • $16M USDC in the DAO’s timelock contract
  • 19,765 ETH (~$24M) of unearned income in the Endowment
  • $6.8M USDC of earned income in the Endowment

For a total of ~30M in the Endowment fund to start.


Based on these strategies, income and asset managements, are there any projections for 3, 5, 10 years available as to minimum and possible maximum expectations?