Monthly Treasury Report —Jan 2021

2021-02-01 — 4 min read

The treasury comprises of $25m, funding protocol development, liquidity and paying out to community grants. The protocol has 212m in RUNE reserves. Planned Obsolescence July 2022.

Summary

The treasury is at $25m, sufficient for the roadmap. Community grants can be allocated.

The Protocol Reserves total 212,108,851 RUNE, worth $742m. These are allocated for Chaosnet & Mainnet emissions, as well as community campaigns.

Planned Obsolescence is set for July 2022.

Operational Treasury

The treasury comprises of $11m USD liquid and $14m in RUNE, total of $25m.

These funds are spent on protocol development, technical costs and community grants. The treasury has increased partly due to the rise in value of BTC.

Liquidity Providing

Around $2m in RUNE was spent from the treasury to bootstrap Sushiswap liquidity. This will be retained into the pools, then moved to multichain.
In addition, around $2.4m in RUNE was allocated to build up liquidity on BEPSwap key pools, this will also be retained until multichain, then used to seed liquidity. Seeding liquidity for multichain is important to ensure a smooth rollout that is sufficiently liquid for the protocol to function.

Protocol Reserves

14.3m 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 (such as the recently announced THORNode Diversification Incentives).

In addition, 7m BNB.RUNE has moved to ETH.RUNE, building up in the BNB comptroller address. These balances will be reconciled after multichain is launched and the bridge closed. The equivalent balance of ETH.RUNE at the time will be burnt from BNB.RUNE — locking in the supplies.

190m 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. 10m RUNE was recently allocated for minting ETH.RUNE.

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 (Frontier & XFi)
Dashboards (Delphi)
Midgard (Delphi & community-dev)
NFT Management (community NFT team)
Social Management (community teams)

If you are a dev or know one, please get in touch to be funded to build on THORChain.

Large Expenses

The team will allocate more funding for Midgard V2 to be shipped to completion, as well as spiking the Polkadot and Atom bridge with two separate teams.

Planned Obsolescence

The team plan to hand over full control of the protocol, github, socials and its treasury around 18 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 $10m+ for this purpose.