Why do we want to diversify our treasury?
- We currently hold almost 92% of our Treasury in PNG
- Holding such a major percentage of our Treasury in one token puts us at risk of volatility in the markets
- If a crypto winter occurs, we want to be able to continue to be able to build and survive through the winter
If you look at Pangolin’s total treasury, you can see it summarized below:
How do we plan to diversify our treasury?
Pangolin’s core business is not to be an investment firm but rather to build great decentralized applications. As such, we believe the best way forward is to partner with a highly respected firm in order to manage our treasury portfolio.
For this purpose, we propose to partner with Muhabbit Capital https://muhabbit.capital/ Muhabbit Capital is one of the most respected VC’s in the Avalanche ecosystem and are a key pillar of the ecosystem. This proposal is to transfer 2 million PNG to Muhabbit in order for them to invest on our behalf.
This will then reduce our Treasury to approximately 82% in Pangolin as seen by the below:
Muhabbit Capital will provide bi-weekly updates and their performance will be based upon the USD value change of the Treasury.
The initial contract will be for a three month trial period. Upon successful completion of the trial period, we may exersize an option to extend it for an additional 9 months, with the potential for further treasury diversification to occur.