Cryptex DAO Proposal: Regulatory Advocacy & Public Affairs Strategy

[Joecryptex]

Dear Cryptex Community, Protocol Delegates, and DAO Contributors,

On March 7th, I attended President Trump’s Crypto Summit Reception in Washington, D.C., as an invitee. This event provided a rare opportunity to meet directly with industry leaders, congressional policymakers, and regulatory decision-makers—the very people shaping the future of crypto in the United States.

Source: https://x.com/cryptexfinance/status/1898414765556252697?s=46

One thing was made abundantly clear: the future of decentralized finance in the United States will be decided in Washington—and Cryptex must have a seat at the table.

This is not just about Cryptex—it’s about ensuring all decentralized protocols have a voice in Washington. If we don’t engage now, centralized financial institutions and legacy entities will dictate the future of this space.

We must take action.

⸻

Why This Matters Now

The DeFi industry is at a crossroads. We have two choices:

Engage with lawmakers and regulators now—while policies are still being shaped.

OR

Let others define the rules for us, without decentralized protocols having a voice.

By stepping up now, Cryptex will seek to:
• Protect Decentralization – Advocate for an open, permissionless DeFi ecosystem governed by its users.
• Secure Fair Representation – Ensure policymakers hear directly from decentralized protocols—not just banks, centralized exchanges, and TradFi interests.
• Shape Policy Before It’s Too Late – Establish relationships, educate key decision-makers, and advocate for pro-innovation regulatory frameworks.

If DeFi remains silent, regulators will have no choice but to listen to the loudest voices in the room—centralized financial institutions.

⸻

Proposed Advocacy & Media Strategy

To take an active role in shaping the future of DeFi, Cryptex will seek to:

1. Direct Engagement in Washington, D.C.
   • Seek to establish regular meetings with lawmakers, policymakers, and government officials to educate and advocate for DeFi.
   • Seek to conduct formal congressional outreach to ensure Cryptex’s mission and the broader DeFi movement are represented at the highest levels.

2. Policy & Congressional Testimony
   • Seek opportunities to provide expert testimony on DeFi-related legislation.
   • Seek to engage with key political action groups to support crypto-friendly policies.

3. Strategic Media & Public Relations
   • Seek to elevate Cryptex’s visibility through targeted op-eds, media appearances, and televised news interviews with top-tier publications.
   • Seek to develop a crisis communications strategy to proactively manage media narratives surrounding DeFi regulation.
   • Seek to secure placements in major media outlets such as The Wall Street Journal, The New York Times, and top financial and political networks.
   • Seek to implement public relations training to refine messaging and improve Cryptex’s positioning in policy discussions.

⸻

Execution Team

To execute this strategy, Cryptex has engaged:
• Seasoned professionals with decades of experience in political advocacy, government relations, and strategic lobbying.
• A media strategist specializing in high-impact placements across major news outlets, political media engagement, and crisis communications.

The Media Strategist’s efforts will include:
• Seeking op-ed placements in major financial and political publications.
• Seeking televised news interviews to bring Cryptex’s mission to a broader audience.
• Seeking to develop a crisis communications strategy to manage regulatory narratives.
• Seeking media training to enhance public engagement and position Cryptex leadership for mainstream discussions.

⸻

Budget & Funding Request

D.C. Advocacy (6-month engagement):
• $17,000/month → Advocacy group (lobbying, congressional outreach)
• $3,000/month → Incidental costs
• Total: $120,000 USDC

Strategic Public Relations (3-month engagement):
• $20,000/month → PR & media placements
• $3,000/month → Incidental costs
• Total: $69,000 USDC

Total Funding Request: $189,000 USDC

⸻

Bonus Structure (Separate governance vote required)

A performance-based bonus in digital assets will be proposed via a separate DAO vote upon the achievement of these milestones. If approved, the structure will be as follows:
• 5,100 CTX to the Advocacy Group after the 6-month engagement.
• 3,000 CTX to PR & Media after the 3-month engagement.

These incentives will only be distributed upon successful execution of milestones defined in this proposal and subject to DAO approval.

⸻

Funding Request & Allocation

The Cryptex SubDAO currently holds $1.5M in digital assets, including 65K in ETH and 15.7K USDC recently allocated to the DAO Treasury.

This proposal requests:
• The SubDAO to allocate $189,000 USDC to the core contributor multisig to fund these advocacy efforts.
• In exchange, the DAO Treasury will provide the SubDAO with the equivalent of CTX + 25%, ensuring no CTX needs to be liquidated to fund these initiatives.

This structure ensures:

No forced asset sales
Full transparency
Sustainable DAO funding

⸻

Risks & Considerations
• Regulatory Uncertainty – While we will seek to engage with policymakers, there is no guarantee of any specific regulatory outcome.
• Budget Considerations – While the cost of these combined initiatives is $189,000 USDC, this proposal directly supports Cryptex’s long-term sustainability.
• Execution & Impact – If approved, we will track and report measurable progress, ensuring full transparency for the community.
• Legal Compliance – All advocacy and lobbying efforts will be conducted through registered professionals to ensure full compliance with all applicable laws.

⸻

Call to Action: Defining the Future of DeFi

The decisions being made right now will determine the fate of decentralized markets for years to come.

By taking action today, Cryptex can help shape the policies that define our future—rather than reacting to them.

By stepping up now, we can:

Protect the integrity of DeFi.
Be a part of key regulatory discussions before they are finalized.
Advance Cryptex’s mission at the highest levels of policy and governance.

⸻

Voting Options

Voting FOR:
• Allocates $189,000 USDC from the SubDAO to the core contributor multisig for this initiative.
• Sends CTX equivalent + 25% from the DAO Treasury to the SubDAO.

Voting AGAINST:
• Does nothing.

⸻

Final Thoughts

The future of decentralized finance will be decided with or without us.

We can either secure our seat at the table—or risk being shut out entirely.

This is our chance to ensure DeFi has a voice in Washington.

Let’s take action together.

Joe Sticco
Cryptex Finance

⸻

Legal Disclaimer

This communication is for informational purposes only and does not constitute financial, legal, or investment advice. Nothing in this proposal guarantees any specific regulatory outcome, policy change, or government action.

Cryptex Finance is a decentralized protocol, and all decisions are subject to DAO governance. Participation in DAO governance and funding decisions should be made based on careful consideration of risks and potential outcomes.

[Caesar]

I am strongly against this proposal.

1. How does this directly help grow Cryptex bottom line for indices
2. The subDAOs goal is to create tangible economic growth for CTX and the CTX ecosystem. Spending funds to lobby congress does not directly or indirectly help achieve this goal.
3. Moreover, if this is priority to the team should it not come from the teams quarterly budget.

I want to make it clear it is long term thinking like this that has helped Cryptex successfully survived the bear market. However, we are still a struggling indices business. The most recent launches have not been well received by the market and there seems to be a few product issues that still may need to be solved. I believe working on solving these problems first should be prioritized. Rather than spending money to lobby congress. Happy to hear others thoughts.

[Joecryptex]

Hi Caesar,

Thank you for your feedback. As a member of the Cryptex SubDAO and broader DAO organization, your engagement is valuable, and I appreciate the time you’ve taken to challenge this proposal. Discussions like these strengthen the DAO’s decision-making process.

However, I’d like to provide additional context and directly address your concerns.

⸻

Addressing PR & Media: Why This Matters

Your response primarily focused on the advocacy component but did not address the PR and media strategy, which is just as critical for Cryptex’s long term success.

This initiative is not just about engaging policymakers—it seeks to ensure Cryptex has a defined, authoritative presence in both financial media and regulatory discussions.

This proposal seeks to:
• Secure high-profile op-ed placements in top-tier financial and political publications, including The Wall Street Journal, Bloomberg, CoinDesk, and Politico.
• Establish TV appearances on major networks to ensure Cryptex’s mission is recognized by mainstream financial markets.
• Provide media training to ensure Cryptex can articulate its position in front of policymakers, regulators, and industry leaders.

This isn’t just marketing—it’s positioning Cryptex as a thought leader in DeFi at the highest levels of both media and government.

Compare this to recent DAO proposals requesting over $500,000 for X Spaces.

At less than 40 percent of that cost, this initiative delivers both high-impact media visibility and direct regulatory engagement—offering significantly greater value to the DAO per dollar spent.

⸻

Regulatory Engagement: Why Now?

To put this into perspective, consider the DC Blockchain Summit happening next week:

https://www.dcblockchainsummit.com/

The event is dominated by centralized financial institutions—many of which are actively working to secure favorable regulatory clarity for their own centralized versions of DeFi.

This is already happening.

If DeFi protocols do not engage now, regulators will shape the industry’s future without any input from decentralized protocols like Cryptex.

⸻

How This Directly Benefits Cryptex’s Bottom Line

The argument that this proposal does not support Cryptex’s bottom line misses the larger reality:

The United States is the largest financial market in the world.
• Regulatory clarity is the gateway to institutional adoption.
• Cryptex builds trust-minimized indexes—designed for broad adoption in DeFi lending markets, institutional portfolios, and structured financial products.
• None of that happens without clear, fair regulatory frameworks.
• Without engagement, Cryptex and DeFi face continued uncertainty in the U.S.
• If open-source DeFi protocols do not actively shape regulations, centralized institutions will craft policies that benefit them, not us.
• This initiative seeks fair representation, not special treatment.
• If centralized finance is in D.C. shaping the rules, decentralized finance must also be at the table.

This is not hypothetical.

As a co-founder of Cryptex, I have seen the protocol achieve hundreds of millions of dollars in index-related activity and over $1.4 billion in governance activity since inception. But I agree wholeheartedly.
It is not enough.

That is exactly why this proposal is being put forward now—while the U.S. political landscape is open to listening to our industry instead of regulating it by enforcement.

⸻

Funding: Why This Is a DAO Initiative, Not a Core Contributor Budget Expense

You suggested this should come from the core contributor budget rather than the SubDAO.

That misunderstands the scope of this initiative.
• Cryptex is a DAO. This is a governance-driven effort that benefits the entire protocol, not just DAO contributors.
• The core contributor budget is allocated for product development.
• This proposal seeks to ensure open-source DeFi has representation in the regulatory process.

DAO funding is the appropriate mechanism for initiatives that impact the entire ecosystem—not just the core contributor roadmap.

⸻

Final Thoughts

We are already at a disadvantage.
• Centralized institutions are actively shaping policy in Washington.
• DeFi protocols are largely absent from these conversations.

If we do nothing, we risk being shut out of the conversation entirely.

This proposal seeks to ensure that:
Cryptex is represented at the highest levels.
Cryptex is positioned as an industry leader—not a protocol waiting on others to shape its future.

This is not about lobbying for Cryptex.

This is about defining the future of decentralized finance.

Best,

Joe

⸻

Legal Disclaimer

This communication is for informational purposes only and does not constitute financial, legal, or investment advice. Nothing in this proposal guarantees any specific regulatory outcome, policy change, or government action. There are no guarantees Cryptex succeeds in any efforts outlined in this proposal.

Cryptex Finance is a decentralized protocol, and all decisions are subject to DAO governance. Participation in DAO governance and funding decisions should be made based on careful consideration of risks and potential outcomes.

[Caesar]

Thank you for the clarification. I will agree with you that centralized players like Bitwise and Blackrock making all the rules is not great for indices. That being said even if you do get a seat at the table the product has to be ready to handle whatever regulatory clarity that is created. And currently I do not believe the product is prepared to handle mass adoption and/or prepared to meet the required changes of regulatory clarity.

Furthermore, this proposal is attempting to create a perception that is a tough sell in cryptex current state. If any of these lawmakers, regulator, or industry leaders do any amount of due diligence they will see Cryptex is not an industry leader. Yes, cryptex at one point was a industry leader and has done millions in volume in previous cycles. But right now this is not the case for a variety of reasons. I believe it is partially do to product as well as targeting correct user base.

Finally, I would like to understand why the $125k allocated in the 2025 budget for thought leadership and branding can not be used for this proposal. Additionally, have the Marketing/PR firms been offered vested or liquid CTX to offset the USDC cost?

[dnkta.eth]

Hi Joe,

I believe this Regulatory Advocacy & Public Affairs Strategy presents a significant opportunity for Cryptex, and if we have this chance, we should seize it. By taking the lead, we can set an example for others to follow.
I understand your concern—if we don’t act, decentralization may lose its relevance until it’s too late to make a difference. I support this effort and trust the core contributors to execute it well.
A couple questions: How do we see the PR efforts driving protocol growth, such as new users or TCAP adoption? Also, what’s the first concrete goal we’re targeting in D.C. for advocacy?

[Joecryptex]

Hi Caesar,

I sincerely appreciate your perspective, and I mean no disrespect when I say this—but I struggle to understand the logic that because Cryptex is not currently perceived as an industry leader, we should not take steps to become one if given a significant opportunity to do so.

I also struggle to understand how, if Cryptex is not recognized at a high level, I was personally invited to the White House Crypto Summit Reception.

All due respect, but this is not an event you simply walk into. If access was that simple, many other decentralized builders and protocols would have been in the room.

They weren’t—because they weren’t invited.

That alone should tell us how urgent this issue is. If DeFi is not in these discussions, someone else is making the rules for us.

⸻

Addressing the “Readiness” Argument

You mentioned that even if Cryptex secures a seat at the table, the product has to be ready to handle regulatory clarity.

I completely agree. But regulatory clarity is not a switch that gets flipped overnight. It’s a process—the same type of process that will evolve alongside Cryptex as we continue to build.

If we wait until Cryptex is “ready” to engage, we’ll be behind, forced to comply with a framework we had no part in shaping. We cannot afford to be passive observers in the regulatory process.

• Cryptex already operates across multiple networks, has secured trusted integrations, and continues to expand its indexing software.

• Regulation is being formed now—whether we’re part of it or not. If we wait for the “perfect” moment, the moment will pass, and the rules will already be written.

• Engaging now ensures that when Cryptex is ready for mass adoption, we are operating in a regulatory environment that enables, rather than restricts, decentralized indexing software.

⸻

Addressing Perception vs. Reality

You suggested that this proposal creates a “tough sell” because Cryptex is not currently positioned as an industry leader.

Regulatory engagement isn’t about selling a perception—it’s about securing a future.

• Cryptex is not claiming to be the largest DeFi protocol today.

• Cryptex is asserting its rightful place in an industry it helped pioneer.

• If we don’t advocate for ourselves, centralized institutions will shape this industry without us.

Regulators are not doing deep-dive research into which protocol has the highest TVL or the most governance activity.

They are listening to whoever is in the room. Right now, that’s not DeFi.

This is an opportunity to try and change that.

⸻

Why This Should Be DAO-Funded, Not Team-Funded

You asked why the $125K allocated for thought leadership and branding cannot be used for this proposal.

That budget is for annual general branding initiatives, not a targeted advocacy and regulatory engagement plan at this scale.

• This proposal is a structured, high-level engagement strategy—not a general marketing effort.

• DAO-funded initiatives should remain distinct from internal contributor budgets. This is a governance-driven initiative for the entire protocol, not just the core contributors.

• If Cryptex is going to engage in policy discussions and seek mass PR, it should be through a structured, community-approved initiative—not a line item in an internal contributor development budget.

⸻

Performance-Based Compensation & USDC Cost Considerations

You asked whether PR firms and advocacy groups have been offered vested or liquid CTX to offset USDC costs.

• The PR team and advocacy group have structured deliverables and a performance-based compensation model tied to CTX. These bonus amounts (5,100 CTX and 3,000 CTX respectively) are only payable pending additional governance approval.

• This ensures accountability and alignment with Cryptex’s long-term success.

• The request is for USDC in exchange for an equal amount of CTX back to the SubDAO—ensuring that we are investing in Cryptex’s future while maintaining financial flexibility.

⸻

Final Thoughts

If we wait for Cryptex to be “perfect” before engaging in regulation, we will never engage.

And by the time we do, the rules will have already been written—by TradFi, for TradFi.

• We don’t have to be the biggest DeFi protocol to deserve a voice.

• We just have to show up—and right now, DeFi isn’t showing up.

• This proposal ensures that Cryptex has a real opportunity to shape the future of this industry.

I appreciate your thoughts, and I’m open to further discussion.

Looking forward to your response.

— Joe

⸻

Legal Disclaimer

This communication is for informational purposes only and does not constitute financial, legal, or investment advice. Nothing in this discussion guarantees any specific regulatory outcome, policy change, or government action. There are no guarantees that Cryptex will succeed in any efforts outlined in this proposal.

Cryptex Finance is a decentralized protocol, and all decisions are subject to DAO governance. Participation in DAO governance and funding decisions should be made based on careful consideration of risks and potential outcomes.

[Joecryptex]

Hi dnkta.eth

First, I want to sincerely thank you for your support and for recognizing the importance of this initiative.

You’ve raised two great questions, and I’d like to address them in detail to the best of my ability.

⸻

1. How Do PR Efforts Seek to Drive Protocol Growth?

The goal of PR is not just visibility—it’s about seeking to establish Cryptex as the go-to name in decentralized on-chain indices and ensuring that our products are taken seriously at the highest levels of media and finance.

Here’s how this effort seeks to drive protocol growth and adoption:
• Seeking Mainstream Awareness for On-Chain Indexes
• Seeking high-profile placements (e.g., The Wall Street Journal, Bloomberg, CoinDesk, Politico).
• Seeking to ensure our products aren’t just visible to crypto natives—but also institutions, policymakers, and major financial players.
• If we want the indexing software we create to be adopted by larger market participants, we need to seek to define our leadership narrative before others do.
• Seeking TV Coverage & Thought Leadership
• Seeking to establish Cryptex in televised discussions to help bridge the gap between DeFi and traditional markets.
• If people don’t understand why on-chain indexes matter, they won’t use them.
• This effort seeks to position Cryptex as the authority on decentralized indices—so that when people hear “on-chain index,” they think Cryptex first.
• Seeking to Build Institutional Credibility
• Whether it’s hedge funds, DAOs, or individual users, institutional credibility matters.
• When major financial players see Cryptex featured in publications they trust, it seeks to reduce friction in adoption—the same way BlackRock and Bitwise benefit from name recognition in TradFi.

PR does not replace product development—but it seeks to amplify our reach in a way that can directly translate into protocol adoption, new partnerships, and long-term credibility.

⸻

2. What’s the First Concrete Goal Cryptex is Seeking in D.C. for Advocacy?

This initiative is designed to be results-driven. Our first concrete goal in D.C. is seeking to establish direct engagement with lawmakers and policymakers on DeFi-specific regulatory concerns.

The first priority is seeking to ensure that decentralized, trust-minimized protocols like Cryptex are included in discussions about how crypto policy is shaped in the U.S.

Here’s what that looks like in practice:
1. Seeking Direct Meetings with Lawmakers & Policymakers
• Seeking to secure meetings with members of Congress, their staff, and relevant financial committees to educate them on on-chain indexes and the role of fully decentralized financial products.
• These conversations are already happening—but right now, only centralized entities are in the room.
2. Seeking to Position Cryptex as a Leading Example of DeFi Done Right
• Many lawmakers and regulators do not understand how decentralized protocols operate.
• By stepping in early, we seek to shape the narrative around Cryptex as an example of responsible, trust-minimized DeFi.
3. Seeking Engagement with Key Crypto Advocacy Groups
• While we are leading this initiative, we are also seeking alignment with crypto-friendly policy groups to ensure that DeFi’s needs are being heard.
• These groups often struggle to find truly decentralized projects to highlight—Cryptex can be one of them.

Ultimately, the first goal is simple: Seek to get DeFi—and Cryptex specifically—into the conversation.

We cannot shape the future of DeFi if we’re not at the table. This proposal ensures that we are.

Looking forward to your thoughts!

— Joe

⸻

Legal Disclaimer

This communication is for informational purposes only and does not constitute financial, legal, or investment advice. Nothing in this proposal guarantees any specific regulatory outcome, policy change, or government action. Cryptex Finance makes no assurances regarding the success of any advocacy or public relations efforts.

Cryptex Finance is a decentralized protocol, and all decisions are subject to DAO governance. Participation in DAO governance and funding decisions should be made based on careful consideration of risks and potential outcomes.

[leo130]

I agree that DeFi needs a strong presence and voice in DC to help shape the future of crypto. The proposal does a good job addressing the ‘why,’ but I’m not entirely sure if this is the key Cryptex’s initiative in lobbying. Are there other DeFi protocols interested in joining forces on this effort? If not, what’s the reason?

Also, what tangible outcomes are we aiming for?
For example, is WLF engagement a key objective?

Media coverage / PR seems a good result, how to measure the success or failure. Are there other ways to gain more mainstream media coverage or to gain more social media coverage for targeted users/investors?

[Joecryptex]

Hi @leo130

I appreciate your thoughtful response and completely agree that DeFi needs a strong presence in DC.

To address your questions:
1. Are other DeFi protocols interested in joining forces?
• Right now, no other U.S.-based decentralized indexing protocols have taken action at this level. That said, Cryptex leading this effort doesn’t exclude collaboration with anyone. If other DeFi projects want to align with us, we’re open to expanding the initiative once established.
2. What tangible outcomes are we aiming for?
• Regulatory Engagement: Seeking direct lines of communication with policymakers and industry bodies to ensure DeFi has a voice in future US regulations by those who help create it.
• Institutional Awareness: Increasing Cryptex’s presence among key financial and regulatory entities, seeking to drive long-term adoption of our decentralized indexing software.
• Media Coverage: Seeking high-level placements in mainstream financial and crypto publications, reinforcing Cryptex’s leadership in decentralized indexing.
3. Is WLF engagement a key objective?
• WLF is one of several avenues we’re pursuing for engagement, but the strategy is broader. The primary focus is direct advocacy efforts with policymakers, PR, participation in key events, and proactive thought leadership at these venues.
4. How do we measure success?
• Media impact: Coverage in top-tier financial and crypto publications, tracked via reach, engagement, and sentiment.
• Regulatory access: Establishing meetings and discussions with policymakers and industry leaders to ensure DeFi is properly represented.
• Industry recognition: Inclusion in key DeFi and regulatory discussions that influence policy frameworks.
5. Are there other ways to gain mainstream/social media coverage?
• Traditional PR firms remain a direct path for mainstream media engagement.
• Social media coverage can be expanded through community-driven initiatives, but it does not replace strategic media placement in top-tier publications that institutional audiences and policymakers rely on.
• Cryptex has always been positioned as a protocol-first project. The goal is securing high-level industry recognition and engagement that leads to long-term impact, rather than temporary hype.

Looking forward to the continued feedback, and congrats on all the work you’re doing in the industry.
Been following along and it’s amazing what you’re building!

Joe

Legal Disclaimer:

This communication is for informational purposes only and does not constitute financial, legal, or investment advice. Nothing in this proposal guarantees any specific regulatory outcome, policy change, or government action. There are no guarantees Cryptex succeeds in any efforts.

Cryptex Finance is a decentralized protocol, and all decisions are subject to DAO governance. Participation in DAO governance and funding decisions should be made based on careful consideration of risks and potential outcomes.

[0xDonnie]

Lets get a proposal executed