Edit to include deadline: please provide comments by Wed 19 Jan
Some corporate sectors - for example Superannuation Funds (Australia) or pension / retirement / 401k funds (elsewhere) - have significant financial assets and investments that could be redirected into $POP, creating a mutual benefit where those fund managers also have ESG and/or carbon-related drivers or obligations.
In addition to current partnership initiatives (eg other DAO treasuries investing existing crypto assets into $POP), this Advice item seeks to:
(1) discuss interest and other considerations re whether we as a DAO / community should pursue corporate POP holders
(2) propose a pilot approach, inviting an Australian ethical superannuation fund to invest in $POP to gain first-hand experience of the way the DAO operates to create value and impact for holders and beneficiaries, while giving the super fund the opportunity to influence Popcorn DAO’s direction via the governance tools
(3) identify interested members to assist with strategy direction and collateral preparation
(4) confirm next steps including any proposal or snapshot requirements
(5) also consider the potential value of global institutional $POP holders. If we do this right, we could create a template to systematically target the insto/corporate sector in every country.
Australian legislation requires all employees to contribution a portion of their earnings (~9.5% p.a.) into regulated “superannuation” funds which can be withdrawn mostly on retirement.
Australian superannuation funds currently total ~$2.5t in assets under management.
This sector has achieved average growth of ~8% depending on the fund category (eg Balanced, Growth etc).
This sector is now under pressure to maintain this growth in a changing macro environment due to COVID and inflation among others.
In contrast, in 2021 the global crypto market cap grew 300% from $775b to $2.2t.
At least one significant Australian super fund has publicly declared it is considering whether to invest in crypto assets.
At the same time, many super funds are also increasing climate-related commitments and investments in clean/green assets due to member demands and regulatory requirements (eg TCFD obligations on company directors to consider climate risks)
$POP could be a very attractive investment for super funds for a number of reasons:
growth potential compared to current and expected performance of traditional financial assets
carbon neutrality of the product, supported by Patch verification which is important for institutional decision making and auditing
positive ESG-related impact through contributions to our beneficiaries, which will be attractive to ethical and B-Corp funds
ability for the funds to participate in $POP governance as token holder, including proposing changes to products and beneficiaries. (Eg many ethical funds invest in polluting companies in order to advocate for positive change from within. These funds would bring solid advocacy and governance experience)
Overall, $POP should be far more attractive than other crypto products (depending on investment criteria eg market cap etc)
Super funds have a fiduciary duty to act in members’ beat interests, and they may feel challenged by crypto sector’s lack of transparency.
It helps that Popcorn’s core team are identified/doxxed and key decisions are decentrally managed via the DAO.
Proposed next steps
(1) Discussion below. Let us have you thoughts, experiences, concerns etc, including changes to approach or scope. Note: this is proposed as a pilot only, so we can roll it out to other sectors eg corporates / family offices / celebs with philanthropic profile etc.
What “asks” do we have of the DAO?
Eg, as Michael suggested on recent AMA, a small amount of discounted $POP to entice the first fund to dip their toe in.
(2) Proposal, if required. (Eg Go / No go, including any asks)
(3) Snapshot, if required.
(4) If we have the support, target at least 1 fund and secure their investment in $POP.
If you’d like to be involved please put your hand up via the discussion thread.