# GMC Treasury USD Diversification **URL:** \ **Category:** Grants / Bounties\ **Created:** [26 August 2023 15:37 UTC](https://dao.rocketpool.net/t/gmc-treasury-usd-diversification/2134 "2023-08-26T15:37:34Z")\ **Posts on this page:** 1\ **Showing post:** 1
**Author:** ![ShfRyn](https://dao.rocketpool.net/user_avatar/dao.rocketpool.net/shfryn/32/531_2.png) [@ShfRyn](https://dao.rocketpool.net/u/ShfRyn)\ **Post date:** [26 August 2023 15:37 UTC](https://dao.rocketpool.net/t/gmc-treasury-usd-diversification/2134/1 "2023-08-26T15:37:34Z")
Below is a proposal to add USDC to the GMC treasury: **Motivation:** Encouraging external participation: By including USDC payments, we attract a diverse applicant pool, leveraging more GMC funds for protocol growth. Applicants can conveniently opt for RPL or USDC compensation. **Plan:** Starting in September, the GMC converts 20% of inflow payments to USDC per month. Given the historical context, the current price of RPL is comparatively low. This prompts us to adopt a gradual approach to accumulating USDC holdings over time, rather than making a significant trade at the current price. **Statistics:** The GMC receives about 3275 RPL per month. At an RPL price of $25, that amounts to $81,875, whereas $16,375 (20%) would be set aside for USDC. Obtaining statistics, such as the number of applicants favoring USD over RPL, proved challenging. Determining the optimal allocation was complex, given that a substantial portion of the funds would be reserved for prospective applicants who might not have engaged without the USD alternative. Here’s a quote taken from @Dondochaka : > In an ideal world, for me: > > 1. All applications specify payment amount as a USD value. > 2. Recipients choose payment denomination in either USD or RPL in their applications. If they choose RPL, their exchange rate is locked at that time. > 3. The GMC has a USDC reserve. > 4. RPL denominated payments are funded out of the current reserve. > 5. USD denominated payments are funded out of the USDC reserve, or by selling RPL at award time, determined at the discretion of the GMC. If there’s no USDC reserve, or not enough USDC in it, the latter option is used. For convenience, the corresponding amount of RPL could also be used, at the current exchange rate. > > For bounties, because the recipient is not known up front, I suggest the payment denomination should always be in USD until the time that an applicant claims bounty completion, at which time they can change it. I tried to outline an approach that could utilize, but wouldn’t strictly depend on a treasury diversified against volatility–the other goal is to have a process that makes denomination and risk clear from the beginning, and to minimize the impact of RPL price changes to the GMC itself by neatly locking in exchange rates in a precise manner. **How does the protocol DAO feel about USDC diversification?** _Poll ([view on site](https://dao.rocketpool.net/t/gmc-treasury-usd-diversification/2134/1))_ --- _[View the full topic](https://dao.rocketpool.net/t/gmc-treasury-usd-diversification/2134)._