ICF Treasury Snapshot: August 2024
The Interchain Foundation follows up today with the first installment of its monthly treasury snapshot updates, as per the latest commitments towards new transparency and communication initiatives in the 2023 Annual Report release.
We are excited to begin with the first of several scheduled updates on the ICF’s status, and direction — the present treasury snapshot shows the current holdings of the ICF, represented by Fiat and Cryptocurrencies. These updates will be published after the closing of each month, during the subsequent working days.
Snapshot process and considerations
**The “Others” category represents a pool of tokens that individually account for nominal amounts and are therefore aggregated under this category for reporting purposes.
Below, we detail the characteristics and minutia of this reporting, to drive clarity toward how values are presented, and the instruments / processes utilized:
Asset pricing
Pricing is a snapshot of the average price of all currencies/assets during the last day of each month (31st of August in this case). The fiat value of tokens is denominated in USD millions, using the prices as of the date mentioned above, with rounding applied in the resulting amounts shown above.
Pricing data and amounts
We utilize CoinMarketCap (except for Penumbra, which uses the protocol’s data) as the reference point for pricing data. Price is denominated in USD. Pricing fluctuations month to month represent the main dynamic influencing treasury value and totals. The secondary dynamic is the yearly defined budget expenditure for the ICF’s operations / funding program, which have different billing periods per provider (quarterly/monthly/yearly) and thus generate different spikes. The choice of assets liquidated to cover said expenditures varies from period to period.
Fiat breakdown
The total fiat pool is distributed and divided across a number of banking entities to diminish exposure and institutional risk — and is either readily available or part of an investment program.
Fiat investments
This percentage represents the amount of fiat currently invested in traditional banking mechanisms for risk management purposes and diversification. These initiatives diminish exposure, diversify fiat into investments that are protected or have safeguards against institutional failure. The uninvested portion is maintained for liquidity purposes.
Cryptocurrency breakdowns
Assets are broken down by primary holdings representing the total pool of the Interchain Foundation’s treasury. This pool is composed of assets held from the foundation’s inception, diversifications/investments, and airdrops/donations. There are different methods of custody to diminish risk and exposure, and diversification diminishes the impact of price fluctuations. Part of these assets are actively delegated through the ICF’s delegation program. The Others category represents a set of tokens that individually represent minimal amounts, and are thus pooled together until the amount becomes material or the asset is part of our delegation program.
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