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r3gen Finance is pleased to present the 2023 Q2 financial review for TreasureDAO. The report takes a deep dive into the financials and performance looking back over the last 6 months with a focus on revenue and expenditure in Q2 vs Q1. Some key insights have been pulled out onto this forum post however we advise everyone reading this to review the full report (link above). Detailed within the full report is an IFRS compliant profit and loss (P&L) statement and accompanying balance sheet.
The purpose of the report is to provide the TreasureDAO community with greater visibility into the current state of DAO operations and financials as well as its high-level roadmap and plans. This will allow TreasureDAO community members to identify the best ways to contribute to the Treasure ecosystem.
The objectives of this report are:
- To keep DAO members informed and enable them to make the best decisions for themselves, the community, and the expansive and growing Treasure ecosystem
- To increase trust in the core contributors and council team operating on behalf of and for the benefit of all members of TreasureDAO
- To provide DAO members a report of TreasureDAO’s asset holdings, giving the community peace of mind of the DAO’s financial position and ensuring that the DAO’s treasury and funds are not being misappropriated
- To provide a clearer, up-to-date roadmap of what is being developed and what is to come, ensuring further alignment and visibility into the DAO’s broader strategy and overall future direction while balancing commercial pragmatism
Key Financial Highlights
Treasury
- Current Treasury holdings total $74.5M which is largely comprised of 53% MAGIC and 19.1% stablecoin holdings (impaired value, not market value)
- Stablecoins make up 7.8% of the total treasury holdings. Treasure is currently partnered with Flowdesk as its primary market maker to firm up its treasury holdings through diversification
- MAGIC token price is down 15% from last month
Revenue
- Total revenue generated in 2023 is $994,035 year to date to June 2023.
- Revenue is currently from 2 streams: in-game revenue and marketplace fees. In time, we will also include AMM fees (from Magicswap) which will be shown in the next report. Current value is immaterial.
- TreasureDAO was also a recipient of a sizable 8M ARB airdrop from the Arbitrum Foundation. This was received in April 2023 and had a USD value of $10.7M at the time of the transfer
- The organization has put forward initial plans on how to utilize this to both further the development of Treasure and the ecosystem along with supporting growth more broadly on Arbitrum.
- Revenue is primarily generated in MAGIC, so both volume and price impact monthly revenue figures. Q1 performed better than Q2 in both USD terms and volume of MAGIC received
Expenses
- Expenses totaled $4.75M YTD for 2023 (excluding Liquidity and Mining Expenses)
- The top expenditure is in relation to the Management Service charge and also Human Capital Costs. TreasureDAO has a number of relationships at an arm’s-length basis with various service companies and is charged a management service fee assessed by a managing company for the services provided to maintain, administer, or oversee an organization.
- Total liquidity and mining emissions for Q2 were $690,648. The organization has migrated to a model where the LP incentives from August start to taper down from 650,000 MAGIC per month to 140,000 MAGIC by the end of 2023 per TIP-20(b).
- For the current year, Legal Services are anticipated to be on the higher side whilst TreasureDAO builds out its legal structure and the organization ensures it is compliant with the increasing regulatory surface area covered in the crypto space. These costs are anticipated to decrease given high initial set-up costs of foundations and companies that are not expected to occur again in the near future. Other Professional service costs are Smart Contract Audit fees and Accountancy fees.
Market Maker Analysis
During August of 2022 Treasure started its search for a market maker, after evaluating more than 10 providers, the council narrowed the search to three potential partners and underwent thorough negotiations before landing what is believed to be the best solution provided by Flowdesk.
Through our accounting, we have tracked the activity of the market maker and have realized within the code “Realized crypto gains/losses” gains/losses are a result of trading activity.
Close
We invite all stakeholders to review this financial report in detail. Whilst this is the first DAO transparency report published, we will iterate and improve it throughout the next few quarters. Please share any thoughts or comments either directly on the forum or through this link on what you would like to see in the next iteration of this report.