If you're knee-deep in the world of crypto, especially meme tokens and DAOs, you've probably heard of Andre Cronje—the mastermind behind projects like Yearn Finance. Recently, he dropped details on a new "Redeemable Treasury" setup for his latest venture, Flying Tulip. And who better to break it down than Graham Novak, the guy who kickstarted ConstitutionDAO? Novak's recent thread on X dives deep into this, drawing parallels to his own DAO experiences and coining a fun term: HIRPies (High Interest Rate Phenomenon companies).

Let's unpack this step by step, keeping things straightforward. No need for jargon overload—I'll explain as we go.

What Is the Redeemable Treasury Design?

At its core, Andre's design for Flying Tulip flips the script on how crypto projects handle investments and treasuries. Instead of the usual high-risk bets where you might lose your principal (the initial money you put in), this setup offers zero principal risk with unlimited upside potential. Sounds too good to be true? It's not—it's smart engineering.

In simple terms, investors contribute to a treasury that's invested in safe, interest-generating assets (think stablecoins earning yields in a high-interest environment). The project then uses the proceeds from those investments to fund operations, not the original contributions. If things don't pan out, investors can pull out their full principal anytime. It's like having a safety net while still chasing those moonshot gains.

Novak points out this reminds him of tricks they pulled with ConstitutionDAO, the viral project that tried to buy a copy of the U.S. Constitution back in 2021. There, they managed refunds and treasury allocations in ways that kept participants happy, even when the bid fell short.

Funding Like an Endowment, Not a Startup

One key twist: Flying Tulip will operate more like a university endowment than a typical startup or meme token launch. Endowments invest principal conservatively and spend only the returns, ensuring longevity. In crypto terms, this means sustainable funding without burning through investor cash.

This model shines in today's high-interest-rate world. With yields on stable assets like U.S. Treasuries or DeFi protocols sitting pretty (thanks to real-world rates not budging much), projects can generate meaningful income just from holding treasury funds. No more relying solely on token sales or hype cycles—it's a more mature approach that could stabilize volatile meme ecosystems.

Enter the HIRPies: High Interest Rate Phenomenon Companies

Novak's got a catchy name for this trend: HIRPies. These are companies or projects that leverage persistent high interest rates to their advantage. In a low-rate era (like pre-2022), borrowing was cheap, and growth-at-all-costs ruled. But now? High rates make holding cash king.

For meme tokens, this could be huge. Imagine a meme project launching with a redeemable treasury: Community members chip in, funds earn yield, and the project uses interest to fuel marketing, airdrops, or even real-world events. If the vibe fades, everyone gets their money back. It reduces rug-pull risks and builds trust—key in the Wild West of memes.

We're likely to see more HIRPies pop up, especially as rates stay elevated. It's a shift from speculative frenzy to something resembling traditional finance, but with crypto's programmability.

Broader Implications for Crypto Organizations

Novak wraps up by predicting big changes in how we structure organizations in web3. Treasury designs aren't just about money—they define relationships between investors, users, and owners. Programmatic rules (smart contracts) can automate refunds, yields, and governance, making DAOs more efficient and fair.

Think about it: In meme token land, where communities form around humor and hype, better capital structures could turn fleeting trends into lasting movements. Projects like Dogecoin or Shiba Inu started as jokes but evolved; tools like redeemable treasuries could help more memes mature without losing their fun edge.

For the full deep dive, check out Novak's long-form article. It's packed with more examples and math on why this works.

In a space where meme tokens often live or die by market whims, innovations like this could be the bridge to sustainability. What do you think—will HIRPies take over crypto funding? Keep an eye on Flying Tulip; it might just set the standard.