## Background

The concept behind ETHOS is to secure a pool of capital in ETH, using lending protocols like (https://debtdao.finance/) to lend our the ETH to organizations that align with our mission, while receiving a yield that enables us to provide grants to organizations might not be able to afford their events.

**Think startup communities and emerging economies.**

## Proposal

Starting with MetaCartel, we propose to transfer the remaining treasury of MetaCartelDAO to ETHOS, where we can steward the funds to events and event organizations that empower global events.

The remaining balance (89.0572 WETH) will continue to power no-strings event grants for qualified organizations.

## How

After a proposal to MetaCartel passes transferring the remaining balance to the ETHOS treasury, we deposit the full amount into our [DebtDAO position](https://debtdao.finance/#/mainnet/lines/0x3c78a682950f05bab0ad3f677c2a067e0f01f399) then lend to qualified borrowers, such as Refraction, which runs live events around the globe (https://ra.co/events/1734049) By using sponsorship agreement contracts they were able to take a $40,000 loan from ETHOS in June, which funded their event execution in July, then paid back the loan in August, with a 10% yield to ETHOS.

The next proposal would enable a larger grant $100,000+ with a 12.5% yield, which would net ETHOS $12,500 in surplus funding for grants per year.

You can see how this strategy would preserve the underlying ETH and allows grant activities to continue ad infinitum ♾️

## Why

Sustainability is key, without sustaining our treasury grant activities will come to a close in a matter of years.

High coordination costs have made the bar unsustainable for non-revenue generating DAOs.

Shifting into a lower outflow of capital with a recurring yield allows us to preserve capital and continue grant activities among subDAO's such as ETHOS and others.

## Closing

It is our belief that this strategy provides a sound and secure way of continuing grant activities and growing our impact across the Web3 ecosystem for the long term, aligns stakeholder interests and provides the most benefit to the current DAO members.

~*This proposal is a work in progress, please provide commentary and feedback in the google doc if you have thoughts*~

https://docs.google.com/document/d/10koobcq31zb1wgHnnoDBind5K9w41xZ9__dzj_eCydI/edit?usp=sharing