# Timewave <> DAO DAO Rebalancer Agreement

## Background

DAO DAO is building critical governance infrastructure for the Interchain, and Timewave is building critical financial infrastructure for Interchain organizations. As such, this proposal seeks to establish a formal relationship that strategically aligns both organizations in a shared mission to improve the state of governance and financial management solutions.

## Value-add to DAO DAO

An implicit task of DAOs as they exist today within the cryptocurrency economy is finding the right balance between exposure to high-risk assets and the ability to provide consistent income/grants/funding for its members or projects.

Most DAOs do not want to become investment organizations, though with the volatility of cryptocurrencies, this is almost unavoidable. Stablecoins provide shelter from this economic uncertainty, though some have shown to be more "stable" than others. DAOs often have to actively pay attention to the market and make strategic trades in order to maintain their treasury value through many cycles.

Timewave's treasury management solution (the Rebalancer) seeks to "rebalance" your portfolio automatically, trending towards the proportions of each asset you specify. For example, a DAO can configure its treasury to maintain 50% of its value in USDC, 20% in ATOM, 10% in OSMO, 10% in STARS, and 10% in JUNO. Then, as the DAO earns and spends money, and as the market conditions fluctuate, the treasury will automatically execute trades to bring it closer to that ratio. If one asset crashes or spikes, there will be caps to prevent it from buying or selling too much.

A sophisticated rebalancer is critical to the stability of DAOs as well as to reducing decision and governance fatigue. It also removes the need for DAOs to become or hire skilled traders.

## Value-add to Timewave

DAO DAO is the most sophisticated DAO tooling that currently exists in Web3, and DAOs are Timewave's target users.

As DAO DAO spreads across the Interchain, a seamless DAO DAO integration will become more and more relevant to the success of financial software targeting decentralized organizations.

Timewave immediately gains exposure to all DAOs on DAO DAO, which will soon include the largest grant programs in the Interchain, among the thousands of other smaller DAOs that range from small organizations and art collectives to decentralized protocols and native chain governance.

## Terms

Timewave will fund Noah Saso to build the smart contract and UI Rebalancer integration into DAO DAO.

In exchange, DAO DAO pledges to adopt Timewave's Rebalancer as its default treasury management provider.

If at any point in the future the Rebalancer starts to generate revenue on trades, a revenue sharing agreement is to be established between Timewave and DAO DAO.

## Into the Future

This proposal seeks to establish a mutually beneficial partnership between Timewave and DAO DAO with the hope that both organizations continue to support and integrate with each other's projects going forward.

## Termination

If within 12 months of integrating Timewave, DAO DAO changes the default treasury management solution or removes support from the interface entirely, DAO DAO pledges to send Timewave 330,000.81 $DAO (3% of total supply).

Should Timewave dissolve or stop providing its rebalancing services to DAO DAO DAOs, this agreement is voided.