Proposal is to diversify the funds held in the DAO treasury into BTC as well.
The crypto equivalent to ‘foreign exchange reserves’. Balanced could hold 65% of the reserves in BTC. The reason to hold BTC in the reserves is to ensure the treasury remains stable through market cycles when alt coins can pull back 80-90% from the top. BTC holds value better.
About foreign exchange reserves:
The average country holds US Dollars in foreign exchange reserves, at 65% of total reserves. They also hold gold and other foreign currencies.
This excerpt from investopedia sums it up:
‘Foreign exchange reserves can include bank notes deposits, bonds, treasury bills, and other government securities. These assets serve many purposes but are most significantly held to ensure that a central government agency has backup funds if their national currency rapidly devalues or becomes all together insolvent.’