Monthly Treasury Report — Apr 2021

THORChain

2021-04-30 — 3 min read

The treasury comprises of $244m, funding protocol development, liquidity and paying out to community grants. The protocol has 192m in RUNE reserves. Planned Obsolescence July 2022.

Summary

The treasury is at $244m, sufficient for the roadmap. Community grants can be allocated.

The Protocol Reserves total 192,048,492.00 RUNE, worth $2.8bn. These are allocated for Chaosnet & Mainnet emissions.

Planned Obsolescence is set for July 2022.

Operational Treasury

The treasury comprises of $56m USD liquid and $187m in RUNE, total of $244m.

These funds are spent on protocol development, technical costs and community grants. The treasury has increased partly due to the rise in value of currencies as well as active yield-farming. The team will look for more ways to discharge the treasury into the ecosystem.

Liquidity Pools

Around $40m has been deployed into liquidity pools, across BEPSwap, Uniswap, Sushiswap and THORSwap. Seeding liquidity for multichain is important to ensure a smooth rollout that is sufficiently liquid for the protocol to function. The long term plan for this liquidity is to permanently deploy it, then successively re-deploy it into THORChain synths, composites and lending features in order to ensure deep liquidity up the layers.

Protocol Reserves

11m RUNE remains in the Chaosnet Reserve, currently paying out LPs and Nodes. A further 724k RUNE is in standby, ready to be used for additional incentives. Standby reserves are currently used for direct pool incentives, or node incentives.

180m RUNE is allocated for emissions beyond Chaosnet, which will be steadily moved into the protocol on launch of multichain and mainnet. Some of it may also be used for other campaigns, if the need arises to bootstrap liquidity.

Runway

The current project runway is at 18+ months and is more than sufficient

Community Grants

The team have actioned 9+ grants to help spike infrastructure, which will run for the next 2–3 months until mature. These are one-time costs.

Telegram bot (Block-42)
Block Explorers (ViewBlock & PusherLabs)
Twitter Bot (PusherLabs)
Wallets (XDefi)
Dashboards (Delphi, RUNEData, RUNEStake)
Midgard (Delphi & community-dev)
Social Management (community teams)

The process for being funded is:

Build a MVP product used by THORChain community.

If gets adoption, then it will be sponsored by a grant.

Planned Obsolescence

The team plan to hand over full control of the protocol, github, socials and its treasury around 15 months (~July 2022) and when the following is hit:

Mainnet, 4–5 chains
Decentralised (team not the locus of control)
Adequate community support (wallets, exchanges, dashboards, bots)

Decentralising The Treasury

Any treasury after planned obsolescence will be likely be cut up and distributed to 5–10 dev teams/node operators/community members to manage the next 5–10 year roadmap of the project. If you are interested in being charged to manage a satellite treasury with your own focus on the protocol, become active and engaged now. There will likely be $50m+ for this purpose.