Over the past several months we’ve worked in the open to develop a 12-month budget for the Treasury Guild. This budget can be seen at the link listed below.
This budget is a spend approval - not a spend mandate.
Here is a walkthrough guide for reading it:
- When you open the budget you will find three tabs:
- “Budget” - a line-by-line and month-to-month breakdown of expenses.
- “Assumptions” - contains all variable inputs to the budget. This should serve as a focal point for any discussion.
- “Assets” - the treasury’s assets updated on May 20th, 2022.
- The budget is broken into three high-level categories, respectively:
- Liquidity Incentives - which primarily comprise a budget for incentivizing liquidity providers for T LPs, tBTC LPs, and thUSD LPs. Historically, we have used Votium and bribe.crv for this. Going forward we plan to use Paladin’s Warden application, which have started testing this week.
- Compensation - comprises the stipends for all existing committee members, the Threshold council, and our Director of Research. Additionally we have a budget for the development and audit of thUSD as informed by @ben and @EvandroSaturnino . And lastly, we have budgeted for a Project Manager role, which is currently vacant.
- Other - this categories includes a conservative budget for (a) the tbtc coverage pool rewards, (b) conferences and hackathons, (c) treasury diversification, and (d) the repayment of the DAO’s T-ETH loan.
Let’s breakdown 3(c) and 3(d) a little deeper since this is the least obvious:
3(c) → We plan to diversify the treasury into ~$5m of tBTC and ~$5m of Convex. This is the equivalent of ~2400 ETH worth of each. The purpose of the tBTC purchases is to help build liquidity for our flagship product. The purpose of the Convex purchases is to help direct liquidity towards all of our product offerings.
Rather than indicating a schedule, we place this entire expense in the final month of the schedule. However, we intend to do this opportunistically, whenever it is in our best interests. This is a deliberate decision to avoid being front run.
3(d) → The DAO’s T-ETH loan should be paid back so that we can start to accrue the fees and rewards and so that we can avoid any significant IL accruing. For that reason, we have included a monthly payback schedule. More information about the loan can be found in this post:
TIP-006 ETH loan to Threshold DAO
This does not include revenues as it is purely a spending approval.
Not every line item is an expense! The majority of the spending in this proposal is to diversify the treasury, which should serve to preserve or increase the value of the treasury over time.
With our current protocol-owned-liquidity (that we plan to increase), we will capture a significant share of the liquidity incentives ourselves.
This is marked in USD, however the expenses and the treasury’s assets are primarily in T. If there are significant changes (which we define as +/- 50%) to the market value of T the Treasury Guild should consider revising the budget and seeking re-approval.
I propose the following schedule:
- Forum Discussion Started - 2022-05-22
- Forum Discussion Concluded - 2022-05-29
- Snapshot Vote Started - 2022-05-29
- Snapshot Vote Concluded - 2022-06-01