As we know, Genesis went into 105 ETH worth of debt in November as you can see here
Now that the first part of the December payment (135 ETH) has dropped I expect those with passed proposals to start redeeming. The second half will drop as DAI mid December. This change of biweekly funding is intended to help us with the debt problem. However, it looks likely we will fund and pay out significant proposals and quickly use up the new funds. We have a significant proposal from DOrg (63ETH) and a couple of very exciting product/tech proposals coming up. Very quickly we could get back into debt.
In my opinion 105ETH of debt is too much and it means we are constantly paying back past proposals.
This passed social consensus proposal by Lior indicates where funding should be spent.
Product and Tech (70 percent of funding)
Research (10 percent of funding)
Ecosystem (15 percent of funding)
Solving the debt problem
A protocol level solution is being looked at for Alchemy - so that DAOs can choose to prevent the ability of the DAO to go into debt but this will take some time - perhaps you can add detail @alexz
In the meantime ecosystem and Eylon will keep us updated on how much debt we’re in and we’ll flag when it’s about to happen.
However, we as a community need to decide on what to do about the debt problem.
Do we want to have a social consensus to try not get into debt - or perhaps try limit it at a resonable level (let’s say -30 limit, for example)?
Would love to hear your thoughts