Monthly Treasury Report — July&August 2021

THORChain

2021-08-29 — 4 min read

The treasury comprises of $194m, funding protocol development, liquidity and paying out to community grants. Liabilities have been secured. The protocol has 180m in RUNE reserves. Planned Obsolescence July 2022.

Summary

The treasury is at $194m, sufficient for the roadmap. Community grants can be allocated.

Liabilities totalling $30m but have been secured and are waiting to be discharged.

The Protocol Reserves total 179,093,899 RUNE, worth $1.8bn. These are allocated for Chaosnet & Mainnet emissions.

Planned Obsolescence is set for July 2022.

Operational Treasury

The treasury comprises of $45m USD liquid and $148m in RUNE, total of $194m.

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

Liabilities

The total cost incurred from the Ethereum Router exploits totalled $16m at the time. The treasury set out a 3-stage plan to cover the liabilities:

Secure 1/3rd immediately with liquid treasury assets (done)

Secure 1/3rd immediately with loan from IronBank (done)

Pay the final 1/3rd at the time of restoring solvency by adding RUNE directly to the pool when the network is re-launched.

(3) is needed since the price of assets will fluctuate and the actual pool ratios will change until the network is re-launched.

As of 30 August 2021, the full liabilities are now $30m, with $20m secured.

Debt

THORChain treasury has a $4m Line of Credit with IronBank, of which $2.6m has been used. 1m ETH.RUNE worth $10m is securing the debt, so there is no concern of liquidation. The debt will be paid off in the months ahead.

Protocol Reserves

Singlechain was completely retired and all funds returned to users. The remaining reserve was moved over to the Ops Reserve, where it will be used to backpay node operators and LPs during network downtime.

150m RUNE remains in standby, with 29.1m RUNE already deployed to the network. The full reserve won’t be deployed until the network reaches mainnet.

Runway

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

Community Grants

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

Block Explorers (ViewBlock & PusherLabs)
Twitter/Telegram Bot (Block-42, TRX, Pusherlabs)
Wallets (XDefi, THORWallet)
Dashboards (Delphi, RUNEData, RUNEYield)
Midgard (Delphi & community-dev)
Social Management (THORSwap, LPUniversity)
Projects: BrokkrFinance, THORStarter

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

Treasury plans to hand over full control of the protocol, github, socials and its treasury around 13 months (~July 2022) and when the following is hit:

Mainnet, 4–5 chains
Decentralised
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.