Monthly Treasury Report

THORChain Monthly Expenses, Budget and Runway Report

Published in

THORChain

3 min readNov 21, 2019

Intro

Following community feedback, THORChain team will now begin reporting on the monthly treasury, as well as expenses, budget and runway in the pursuit of radical transparency. By removing any information asymmetry between the team and the community, the community will be able to better manage the risk of the project and assist the team in realising the vision.

Whilst feedback will be gladly received, the Team need the space and freedom to financially act in the best interest in the project, and a certain degree of trust is still required until the network is sufficiently bootstrapped and decentralised. Thus Admins have been directed to deflect highly specific questions about expenses with general answers. This is to allow the team to focus on building, and not accounting.

Treasury

The team have been funded with roughly $1.5m, gathered from seed and IDO sales. The current liquid treasury is at around $1m USD.

The team have access to currently ~48m Rune in Operational Reserves and ~47m Rune in Community Reserves (vested). The plan for that is discussed below.

Community Reserve

The Community Reserve is for initiatives to grow the community, such as airdrops, RUNEVault staking, marketing budget and more. 2m RUNE is unlocked from the Reserve per month, and burned if not used.

In October the team issued out 2.5m RUNE towards RUNEVault which exceeded the monthly budget by 500k RUNE. RUNEVault is a cornerstone initiative, so it will not be changed until ChaosNet.

Operational Reserves

The Operational Reserve is for the team to augment their liquid assets, since the initial sale was small. Rune is paid for staff expenses, bounties and contractors, and may in future be used to raise additional capital. 3.25m RUNE is unlocked from the Reserve each month and burned if not used.

The team has been receiving considerable interest from token Investment Funds and Strategic Partners for additional investment in the project. The RUNE token is relatively illiquid (due to RUNEVault lockups), so the team will come up with a plan to how to manage future investment interest.

The team would like to raise additional $2–3m in 2020 and beyond to build a sufficient treasury.

Budget & Runway

The team work with Liquid and Rune assets for monthly expenses. The Liquid assets are currently fielding a 17 month runway, while the Rune assets are limited to the 20 Month unlock cycle (6 months in).