Yes, I agree that these are two different paths to managing the DAO treasury. These two paths have their pros and cons:
Spending Budget
Pros:
- Specific value of costs.
- It is much easier to manage and less further code development is needed.
Cons:
- Decreasing the value of the treasury holding.
- Inflation impact.
Direct Investment with an incentive entitlement right
Pros:
- Potential investment rewards may increase the value of DAO treasury.
- Deeper integrated and collaborated with other DAOs.
Cons:
- There will be a risk of treasury value losses, and it will bring more uncertainty and difficulty on treasury management.
- Further contract coding and managing might be needed.
I think this is a topic we can continue discussing and it’s not in a hurry to make the decision. Now the most emergency topic should be Should Lido on Ethereum be limited to some fixed % of stake? Maybe we can make more broad discussion after that.