Mento Reserve: Returning CELO

Agreed that

  • there seems to be a consensus that returning a large portion of the CELO (aiming for 120M) currently held in the Mento reserve is the right thing to do as long as it leaves the Mento reserve in a comfortable state

  • the framework of temporary vs. permanent use of funds proposed by @tim is a good one to structure the discussion around usage of those funds

  • Celo and Mento TVL would be strongly negatively impacted by this as long as there is no new destination for those funds (i.e. liquidity provision in the sense of temporary use of funds)

To still get actionable despite the TVL aspect, I suggest we start by a governance proposal that

  1. asks for official consensus to move up to 120M CELO out of the Mento Reserve and into the Community Fund stepwise over time with the total amount potentially reduced if the Mento Reserve would run uncomfortably low by doing so. Every removal of CELO from the Reserve would be accompanied by a respective reduction in the CELO target weight of the Mento Reserve to make the removal permanent…
  2. proposes a first such transfer of Reserve CELO by adjusting the CELO target weight to 40% (down from 50%) and immediately sending the equivalent amount of CELO to the Community Fund (about 20M CELO at the current price levels).

The idea behind 1. would be to create some certainty around the funding that will become available to the Community Fund in the future whereas 2. would incentivize folks to come up with first concrete proposals on temporary and permanent use of funds through making some funds immediately available. Does this sound like a good first CGP to everyone? If so, I would aim to draft and submit it on chain next week.