LIP-30.md

LIPs/[LIP-30] Lens Treasury Management and Revenue Back Stimulation Campaigns.md

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+---
+title: <Rework the Lens Treasury>
+description: <Diversifying Lens's Treasury>
+author: < (@zkjew), >
+discussions-to: <(https://orb.club/p/0xdd33-0x08f1-DA-9703d62f)>
+status: Draft
+type: <Protocol>
+category: <Treasury> 
+created: <(2024-08-09) >
+---
+
+## Abstract
+
+<
+Lens protocol has undergone a vast amount of growth over the past year. This is showcased in Lens’s treasury holdings which boast over $500,000 dollars in value accrued from mainly Lens profile and handle mints. The goal of this LIP is to layout a plan for proper treasury management.
+>
+
+## Motivation
+
+<
+  Currently, the majority of Lens’s funds have been stored in MATIC as it is the gas token for the polygon POS chain that Lens currently inhabits; however, Lens’s current V3 visions will see a migration away from polygon to “Lens chain” and will need various different payment tokens that is not just matic. In addition, matic has been seen to be a less than satisfactory investment when compared to its competitors. Furthermore, treasury diversification should be done in order to support Lens’s long term needs in terms of subsidies of gas and incentives for high quality users.
+  >
+
+## Specification and Rational
+
+<
+
+Lens protocol should diversify its treasury into assets for the following needs when revenue is produced: It should have an allocation to buy data availibility as a validium or layer 2. It should have an allocation to purchase data bridging services from Chainlink as proposed in Lens's V3 vision. It should have an allocation to pay for permanent storage of data like on Arweave. Some matic should be saved to continue to fund transactions on the old infrustructure (Momoka). Some should be allocated to giving Lens a stake in ZKsync's governance which is where Lens Chain will be hosted. And finally, a certain portion should be allocated to holdings of Lens's defacto currency "Bonsai" to stimulant the Lens Economy via airdrops to incentive new users to join and reward current high quality users. A "test" of this could be conducted on Lens's V3 launch to see if it's effective in directly stimulating growth. To manage this, Lens will DCA into these holdings when the revenue meets a certain benchmark for revenue produced by all old profile mints and will retroactively DCA revenue for all the new mints in a responsible manner. 
+>
+
+## Backwards Compatibility
+
+<
+  No backward compatibility issues found. 
+  >
+
+## Copyright
+
+Copyright and related rights waived via CC0.