Treasury Management for Web3 Platforms (For Techies)

🌟 Treasury Management for Web3 Platforms (For Techies) 🌟

Course Update: Last Updated on 29th November 2022

• A new section added covering the FTX Crisis and Proof-of-Solvency (Proof-of-Reserves).
• Professionally created captions have been incorporated for better understanding.

Course Headline: Understanding and Improving Web3 Treasury Management in the Face of Economic Challenges

Course Description:

In the rapidly evolving landscape of web3, treasury management has emerged as a critical discipline that is essential for the sustainability and economic health of platforms within this space. As we witness the growth of DAO treasuries, managing these assets has become increasingly complex and significant due to their substantial size and potential systemic risks.

The Dichotomy of Web3 Growth:

• Failure to Achieve Growth:

  • Learn how poorly designed token engineering can fail to incentivize user engagement, as explored in Sam Ghosh's Token Engineering course.

• Failure to Sustain Growth:

  • Examine the collapse of platforms like Terra ecosystem, which highlight the necessity of robust treasury management practices.

The Economic Impact:

• As of mid-August 2022, DAO treasuries under management exceeded 10 billion dollars, a significant increase from just 380 million in early 2021. This growth underscores the importance of managing these funds effectively to prevent economic failures that could lead to massive financial losses and regulatory scrutiny.

The Complexity of Treasury Management in Web3:

• Traditional treasury management is resource-intensive, but web3 introduces unique challenges due to its decentralized nature. Decision-making processes in web3 platforms are spread across various stakeholders, making centralized control and coordination more difficult.

Course Objectives:

• This course aims to explore how traditional treasury management tools can be adapted for the needs of web3 platforms.
• We will delve into the core principles of treasury management, discussing both established concepts and emerging practices tailored for the decentralized finance (DeFi) environment.

What You Will Learn:

• Treasury Management Tools: Introducing a range of tools and frameworks derived from conventional financial management that can be applied to web3 platforms.
• Economic Considerations: Understanding the economic factors that influence treasury management in web3, including the impact of market dynamics, liquidity considerations, and capital allocation strategies.
• Adaptation for Web3: Learning how to tailor these tools to fit the decentralized structure of web3 organizations while maintaining transparency, security, and efficiency.

Important Note: This course is not a definitive guide but rather an introduction to the concepts and tools available for treasury management in web3. As this field is still evolving, it is crucial to continuously adapt and learn from both successes and failures within the ecosystem.

Let's Begin Our Journey: This course will equip you with the knowledge to navigate the complexities of treasury management in web3. By understanding the tools and concepts at your disposal, you can make informed decisions that contribute to the long-term sustainability and growth of your platform. Join us as we explore this critical aspect of web3 financial operations.

Enroll now to embark on a journey towards becoming a proficient treasury manager in the world of web3 platforms! 🚀🔑💰