SCP-192: Tokenomics Workstream Renewal (Q2 2025 - Q1 2026)

SCP-192: Tokenomics Workstream Renewal (Q2 2025 - Q1 2026)
Term: March 1, 2025 - February 28, 2026

Summary
This proposal seeks to renew the Tokenomics Workstream for a full-year term, ensuring the DAO’s financial resilience, governance efficiency, revenue optimization, and FOX tokenomics strategy. Over the past year, ProfMcCarthy has led substantial improvements in treasury management, governance transparency, and revenue modeling, while ensuring data accuracy and visibility across ShapeShift’s ecosystem.

The DAO Finance Committee (DFC) will continue in its current form, ensuring structured oversight of ShapeShift’s financial strategy and maintaining DAO-wide fiscal responsibility.

Key Focus Areas for 2025:
✅ Treasury & financial health – Stability, diversification, and PoL growth
✅ Revenue optimization – Fee model refinements and DeFi strategy expansion
✅ Governance efficiency – Improved vote execution and transparency
✅ FOX tokenomics & demand strategy – Token utility experiments and adoption growth
✅ Automation & smart tokenomics – Deploying contracts for automated treasury operations

Motivation
The Tokenomics Workstream is responsible for:

🟢 Core Tokenomics Responsibilities (Falls directly under tokenomics and should remain the primary focus)
💰 Treasury & Financial Stability
Maintain $2M+ stablecoin reserves and extend the financial runway to 18 months
Increase Protocol-Owned Liquidity (PoL) (Mainnet: $5M, Arbitrum: $150k)
Diversify the treasury into BTC, ETH, and stablecoins
📈 Supporting DFC Revenue Optimization & Growth
Support plans to increase monthly DAO revenue to $100k+ (Stretch Goal: $150k/month)
Support plans to expand DeFi yield strategies to generate $30k+ per month (Stretch Goal: $50k/month)
Maintain revenue dashboards tracking ShapeShift’s trade volumes, fee sources, and LP contributions. (Generate greater insights, descriptions, and comprehensive dashboards that tell a story.)
⚖️ Governance & Transparency
Host 18-20+ DFC meetings per quarter (to align with past activity while allowing for time off)
Publish karpatkey-esque financial reports (once DeFi actions start)
Provide weekly Friday treasury updates
Ensure proper execution of multisig transactions & training processes
📊 FOX Tokenomics & Market Positioning
Own all FOX supply, emissions, and tokenomics data
Launch 1-2 FOX utility experiments per quarter to improve use cases
Increase FOX adoption and user engagement through incentive-based strategies
🛠 Automation & Smart Tokenomics Development
Learn Solidity fundamentals & collaborate with engineering
Deploy smart tokenomics contracts for automated treasury operations
Treasury profits allocated to specific wallets with pre-set instructions and governance oversight
🟡 DAO-Wide Initiatives That Impact Tokenomics (Needs DAO collaboration but influences tokenomics strategy)
⚡ FOX Lending Pool Feasibility
Pursue partnerships to enable FOX as collateral for DeFi lending markets
Conduct risk modeling and feasibility analysis for a potential FOX-backed lending pool
Pursue partnerships to enable FOX as collateral for DeFi lending markets.|
Conduct risk modeling and feasibility analysis (ensuring alignment with FOX demand goals, but recognizing that execution & integrations will require external partnerships beyond tokenomics workstream’s scope.)|
Clarify if lending pools will serve as a revenue source or solely as a utility driver.|
(Execution & integrations will require external partnerships beyond tokenomics workstream’s scope)

📢 Marketing & Public Reporting of FOX Tokenomics
Ensure FOX tokenomics messaging is accurate & aligned across external platforms (CMC, Coingecko, website)
Provide data & insights for marketing campaigns (Execution owned by the DAO’s marketing team)
👥 Community & Governance Participation
Continue to support community and governance participation efforts (e.g., Shapeshift Praise Hour, opening DFC meetings to the public and treating everyone with kindness and respect)
Encourage FOX holder engagement through structured incentive programs (Execution owned by governance & community teams, not tokenomics)
Abstract
Under ProfMcCarthy’s leadership, the Tokenomics Workstream has:

📊 Treasury & Revenue Management
Increased stablecoin reserves from <$300k to $2.6M
Improved DAO fee models & DeFi integrations, growing monthly revenue from $5k-$10k (late 2023) to $40k-$70k (late 2024)
Ensured consistent payroll amid market and volume volatility
⚖️ Governance & Transparency
Hosted 80+ biweekly DFC meetings
Increased tracking, specifics, and execution timing of multisig transactions
Developed processes for multisig transactions to ensure that the DAO hasn’t lost any funds in the last year
📈 FOX Tokenomics & Data Management
Took full ownership of FOX supply, emissions schedules, token burns, and incentive distributions
Ensured public tokenomics data consistency across all DAO-facing platforms
📊 Dashboard Maintenance & Data Analytics
Treasury, Revenue, LP, Swap Volume, and Market Positioning Dashboards
Automated financial reporting for real-time decision-making
Specifications
Goals for 2025
📌 Treasury & Financial Health

Maintain $2M+ stablecoin reserves
Extend financial runway to 18 months
Grow Protocol-Owned Liquidity (PoL):
Mainnet: $5M
Arbitrum: $150k
📈 Revenue Optimization

Increase DAO revenue to $100k+/month (Stretch Goal: $150k/month)
Expand DeFi strategies to generate at least $50k/month (Stretch Goal: $75k/month)
⚖️ Governance & Transparency

Host 18-20+ DFC meetings per quarter
Provide weekly Friday treasury updates
Publish > one social media thread related to tokenomics per week
Publish major vote briefs & financial updates
Coordinate with other WS leaders and community regarding important developments
🚀 FOX Token Utility & Adoption

Increase FOX holders by 20% (Stretch: 50%)
Increase FOX holder activity on ShapeShift platform (Base: 10%, Stretch: 10%)
Increase conversion of ShapeShift users into FOX holders (Base: 10%, Stretch: 15%)
Launch 1-2 token utility experiments per quarter
🛠 Smart Tokenomics & Automation

Deploy smart contracts for treasury automation
Learn Solidity & collaborate with engineering on tokenomics automation
Budget & Compensation
📌 Total Budget: $198,000/year

Workstream Lead (ProfMcCarthy):

$15,500/month
$7,000 in USDC
$8,500 in FOX
Additional Budget:

Rayyyk (Dashboard Maintenance): $10,000 (50% FOX, 50% USDC)
Discretionary Budget: $5,000 USDC
Voting Options
🟢 For: Approve the renewal
🔴 Against: Reject the renewal