Volta Treasury Report Q1 2024
The treasury spreadsheet showing positions as of the 31st of March, 2024 is included at the end of this article as always. The CMP 3 proposal resulted in incentive structure changes. The market price of Volta was therefore not supported by buybacks during the quarter as has been the case previously. CMP 8 ended up passing at the end of the quarter providing significant changes for future quarters. The crypto bull market has returned and we are looking forward to great performance for the remainder of the year.
A Look Around the Market
The total crypto market cap continues to increase as we are back in a bull market. ETH began the quarter at $2300 with BTC at $42,005 from our last snapshot on December 31st. As of March 31st, ETH is at $3636 and BTC is over $70,000. Hopes for a quick ETH ETF after the BTC approval seem to be subsiding. It continues to lag behind BTC and many alt chains, notably AVAX, SOL, OP and even FTM.
The BTC halving is drawing near and will happen in April. The market has historically become very hot post halving.
Our View and Strategy
Our primary holdings are Sifu tokens and ETH. Sifu tokens have appreciated over 100% since we acquired them, and we expect ETH will play catch-up in the coming months.
We are focused on promoting UwU Lend and Interport to more users. This will allow those tokens to become more liquid in the future, boosting backing price.
We hold nearly 40% of the supply of Sifuvision tokens. The bulk of farming and trading happens through these tokens as their backing value increasing also increases ours. We are in close collaboration looking for new opportunities.
Defending a price target during a 10 day TWAP was determined to be too damaging to longer term holders versus arbitraguers taking advantage of easy money.
A new CMP was put to a vote during this period by a community member which ultimately does not change Q1’s performance fee non-payment, but does make significant changes for future quarters. The vote passed on the 31st of March.
Changes Due to CMP 8
CMP 8 changes the incentive fee structure in response to concerns by the community. Notable changes include:
- All of our UwU, ITP and BSGG will not be included in the liquid value of the treasury.
- Any performance fee will be based on the liquid value of the treasury increasing (i.e. backed value per Volta token).
- The performance fee will be paid in Volta tokens at liquid backing.
- A new high watermark of where the treasury currently stands as of March 31, 2024 will be used going forward ($173.23).
- The proposal mandates the return of buybacks.
Read the full proposal to see the reasoning behind CMP 8 and additional details here.
Treasury Spreadsheet
Liquid treasury March 31st, 2024: $43,308,554.28
Note that the new CMP requires a large chunk of the treasury to be excluded in the liquid value. Hence the number is significantly smaller than usual. We begin Q2 with an updated high watermark as dictated in CMP 8 of $173.23. No performance fee was paid this quarter.
Buybacks will resume to support the market price of Volta. The supply of Volta tokens stands at 250,000.
The management fee for Q2 was calculated as per CMP 8 and sent to the team multisig treasury, as seen here.
Previous year management fee that went unallocated was distributed here.
