Introduced investment policy proposal, added item in the directory for it under protocol.ts

app/local/config/navigation/protocol.ts

@@ -358,6 +358,7 @@ export const navigation: SectionData[] = [
                     },
                     { title: 'Foundation', href: '/dao/foundation' },
                     { title: 'Token & Airdrop', href: '/dao/token' },
+                    { title: 'Investment Policy Proposal', href: '/dao/ips' },
                 ],
             },
             {

docs/dao/ips.mdx

@@ -0,0 +1,146 @@
+# Investment Policy Statement (IPS) for ENS Endowment Fund
+
+## Introduction
+This Investment Policy Statement (“IPS”) is intended to outline the principles and guidelines for the effective management of the ENS Endowment Fund (the “Endowment”). By establishing a clear understanding within the DAO regarding the purpose, constraints, and governance mechanisms for the Endowment, the DAO will be able to:
+
+- **Plan for appropriate asset allocation and implementation of its Endowment (‘investment strategies’).**
+- **Plan for resource allocation of the DAO (‘financial planning’).**
+- **Establish responsibility and accountability of all involved parties (‘accountability’).**
+
+---
+
+## Background
+
+### History of ENS
+Founded in 2017, Ethereum Name Service (“ENS”) is a distributed, open, and extensible naming system based on the Ethereum blockchain. ENS maps human-readable names to machine-readable identifiers, such as Ethereum addresses, cryptocurrency addresses, content hashes, metadata, and more. Further details can be found in its [Technical Documentation](https://docs.ens.domains).
+
+### Purpose of ENS
+As outlined in the ENS DAO Constitution, ENS focuses on building a decentralized public good (ENS domains). Financially, the Constitution states that any income generated by the ENS treasury should prioritize ensuring the long-term viability of ENS and funding ongoing development and improvements of the ENS system.
+
+---
+
+## Purpose of Investment Policy Statement
+This IPS, developed by ENS DAO and Karpatkey, aims to:
+
+- Define and assign responsibilities of all involved parties.
+- Establish clear investment goals and objectives for Endowment assets.
+- Provide guidance and limitations for the Endowment Manager.
+- Set a basis for evaluating the performance of the Endowment Manager.
+- Ensure prudent standards for managing Endowment assets.
+
+The IPS outlines a philosophy and framework to guide Endowment management toward desired results, balancing specificity with flexibility.
+
+---
+
+## Governance and Oversight
+
+### Responsibilities of Parties Involved
+
+#### Responsibilities of ENS DAO
+1. **Establishing Objectives:** Define investment goals, risk tolerance, time horizon, and income requirements.
+2. **Approving the IPS:** Ensure alignment with DAO objectives and constraints.
+3. **Oversight and Review:** Regularly evaluate investment performance and service providers.
+4. **Communication:** Notify the Endowment Manager of significant policy or financial changes.
+5. **Reviewing and Revising IPS:** Update the IPS as needed in response to changes.
+
+The Meta-Governance Working Group will facilitate these responsibilities.
+
+#### Responsibilities of Endowment Manager
+1. **Strategy Implementation:** Follow IPS guidelines and constraints.
+2. **Reporting:** Provide regular performance updates and maintain accurate records.
+3. **Risk Management:** Monitor market, counterparty, and smart contract risks.
+4. **Communication:** Maintain transparency with the DAO on strategy and performance.
+5. **IPS Review:** Assist in periodic IPS reviews.
+6. **Other Support:** Provide ad-hoc support related to Endowment and financial health.
+
+---
+
+## Investment Policy Review and Update Process
+The IPS will be reviewed annually and updated as necessary due to market, DAO, or Endowment changes.
+
+---
+
+## Investment Objectives and Spending Rate
+
+### Investment Objectives
+The Endowment aims to:
+
+1. **Ensure long-term survival:** Cover ongoing DAO expenses without liquidating principal.
+2. **Support self-sustainability:** Grow the Endowment over the medium-term (5 years) to achieve long-term goals.
+
+### Spending Rate
+Annual spending supports:
+1. ENS Labs (formerly True Names Ltd)
+2. DAO Working Groups
+3. Grant recipients (as per EP 4.7 and 4.9).
+
+**2024 Projections:**
+- Expenses: $12.1M
+- Revenue: 4,771 ETH (~$12.3M).
+
+---
+
+### Investment Objective
+- **Return Objective:** Target 80/20 allocation (ETH/Stablecoin) with defined on-chain rates.
+- **Ecosystem Objective:** Prioritize investments aligned with ENS and Ethereum ethos.
+- **Preservation of Capital:** Deploy assets in blue-chip protocols to minimize risks.
+- **Growth of Capital:** Focus on ETH allocation for long-term appreciation.
+
+---
+
+## Risk Objectives
+Risk is defined as:
+- Probability of not meeting liabilities or cash flow needs.
+- Probability of principal loss.
+
+Risk tolerance is low, focusing on capital preservation with limitations on speculative trading and protocol exposure.
+
+---
+
+## Constraints
+1. **Liquidity Needs:** Maintain 2 years of operating expenses (~$17.8M).
+2. **Deployment Venues:** Max 25% allocation to a single protocol; assets must be on Ethereum mainnet.
+3. **Delta Neutral Deployment:** Unearned revenue (ETH) must remain risk-neutral.
+
+---
+
+## Investment Guidelines
+
+### Asset Allocation Guidelines
+Allowed Assets:
+- ETH and staked equivalents
+- Stablecoins: USDC, USDT, DAI
+
+Allowed Strategies:
+- Lending & Borrowing
+- Liquidity Provision
+- Staking
+- Cash-and-carry trades
+
+### Portfolio Rebalancing Guidelines
+- **Target Allocation:** 80% ETH, 20% stablecoins.
+- **Minimum Stablecoin Allocation:** ~$17.8M.
+- **Rebalancing Trigger:** Bi-weekly in tranches of 1,000 ETH.
+
+---
+
+## Reporting and Performance Review
+
+### Reporting
+1. **Monthly Reports:** Performance reports shared with the DAO.
+2. **Annual Review:** In-depth analysis and strategic recommendations.
+
+### Performance Review
+The DAO will evaluate the portfolio annually, but reserves the right to terminate the Endowment Manager or service providers for reasons including:
+- Underperformance or unacceptable justification for poor results.
+- Failure to meet IPS requirements.
+- Significant organizational changes.
+
+---
+
+
+## Documents
+
+The original Investment Policy Proposal, authored by Karpatkey, has been made available for the sake of transparency and accountability.
+
+

docs/dao/proposals/5.20.mdx

@@ -16,21 +16,21 @@ export const meta = {
 
 ## Abstract
 
-This proposal suggests introducing and implementing an [Investment Policy Statement (IPS)](https://drive.google.com/file/d/1NtaKb-9HJf9wJmVOq4sQbhsYQ4yZtTF2) for the ENS Endowment.
+This proposal suggests introducing and implementing an Investment Policy Statement (IPS) for the ENS Endowment.
 
 The Investment Policy Statement (“IPS”) outlines the principles and guidelines for the effective management of the ENS Endowment Fund (the “Endowment”). And provides additional clarity to the Endowment Manager in their duties of achieving the mandate of the ENS Endowment established in [EP 2.2.4](https://discuss.ens.domains/t/ep2-2-4-social-rfp-ens-endowment/14069).
 
 ## Specification
 
-The creation and implementation of the [IPS](https://drive.google.com/file/d/1NtaKb-9HJf9wJmVOq4sQbhsYQ4yZtTF2), will serve the following purposes:
+The creation and implementation of the IPS, will serve the following purposes:
 
 1. Define and assign the responsibilities of all parties involved in the Endowment.
 2. Establish clear investment goals and objectives for the Endowment assets.
 3. Offer guidance and limitations to the Endowment Manager regarding the investment of the Endowment assets.
 4. Establish a basis for evaluating the performance of the Endowment Manager.
 5. Express the prudent standards that are expected in the management of the Endowment assets.
 
-The proposed ENS Investment Policy Statement to be ratified can be read: [here](https://drive.google.com/file/d/1NtaKb-9HJf9wJmVOq4sQbhsYQ4yZtTF2).
+The proposed ENS Investment Policy Statement to be ratified can be read [here](/dao/ips).
 
 As specified in the IPS, this document will be continually reviewed annually.