Monthly Treasury Report

THORChain Monthly Expenses, Budget and Runway Report for March 2020

THORChain

24 Mar 2020 — 2 min read

Overview

Despite market drawdowns, the treasury is at $1.4m USD, sufficient for a 23 month Runway. OTC Sales were completed in the preceding month. There are no large expenses on the horizon, and the audit expenses are appropriately budgeted for.

The Community Reserve is fully-allocated to RUNEVault, which will be capped at 1m per week.

Treasury

The treasury has increased by 25 BTC from an OTC sale in the previous month which increase the Bitcoin exposure of the treasury. The OTC investor is a dedicated fund who will provide long term support to the project and may make future entries. The Bitcoin will be sold off to USD to reduce Bitcoin exposure in the coming months.

OTC sales are always done at the 7-day moving average.

With $690k of treasury in USD, the team are not concerned about the project’s runway for the next 12 months and quite insulated from banking issues and wider economic weakening. The team also diversified the USD assets, now holding USDC, BUSD as well as USDT. This will minimise the risk of a single USD asset.

The Operational Reserve is healthy at 27m RUNE. The emission is now reduced to 1.5m per month to increase the RUNE runway out to 2021. Operational Reserve RUNE is used for OTC sales and developer bounties/payments.

The Community Reserve is healthy at 29m RUNE which is allocated to RUNEVault. The ongoing emission to the community is necessary to ensure that the original IDO could not be sybil-attacked and that distribution is wide. These efforts continue to pay off, with the RUNE asset being one of the most widely distributed on the Binance Chain network.

Runway

The current project runway is at 23 months, with 10 engineers. All team members are paid 70% in USDT and 30% in RUNE for alignment with the project. They are:

Tech Lead
Cryptography Engineer
2 * THORChain Engineers
Full Stack Engineer
Devops Engineer
Bifrost Engineer
Midgard Engineer
Asgard Wallet Engineer
Project Manager

The team also service several part-time community admins who are paid a small amount in RUNE.

Large Expenses

The team’s budget of $150k for all three audits is adequate and is unlikely to go over.

Summary

In summary the team’s treasury is healthy for the stage of the project and will allow a solid 23 month runway for the project. This is more than sufficient to deliver mainnet.

As always — the team will keep the community up to date on all aspects of THORChain’s treasury and staff-loading. Management intend to preserve sufficient funding to ensure adequate engineering out to the end of 2021.

All projects come with treasury risk, however in being transparent, this risk should be minimised.