Introduction
Why?
As the PoolTogether community is expanding and attracting more contributors, a detailed view of incomes and expenses is required to determine the runway of the Treasury and be able to plan accordingly.
What?
This post will go over the 2023-Q1 Treasury inflows and outflows of the Treasury. By looking at the movement of funds from the Treasury, we are able to estimate the runway in different scenarios (optimistic VS realistic VS negative).
All the data presented in the following post can be viewed in this presentation .
The calculations performed to get the numbers shown can also be reviewed in this sheet .
Special thanks to @underthesea for collaborating with these reports.
Summary
The POOL token has been live on the Ethereum blockchain for over 2 years. Since then, the token has fulfilled its purpose of supporting growth and decentralizing the PoolTogether protocol with over 8,500 different holders (only taking into account Ethereum blockchain) and almost 100K transfers.
Treasury
Currently the PoolTogether Treasury holds around $8.2 million in which 52.1% (the protocol’s native token) is composed of POOL and 30.9% are stablecoins. The Protocol Owned Liquidity program holds 9.3% of the total value in the form of POOL (77%) + ETH (23%), while 4.7% is held in ETH (or LSD derivatives).
Other assets amount to around 3%, mostly in OP.
The wallets analyzed in order to show the Treasury assets are the following:
- Governance Timelock: 0x42cd8312d2bce04277dd5161832460e95b24262e
- Vested POOL: 0x21950e281bde1714ffd1062ed17c56d4d8de2359
- Executive Team Ethereum: 0xDa63D70332139E6A8eCA7513f4b6E2E0Dc93b693
- Executive Team Optimism: 0x8d352083f7094dc51cd7da8c5c0985ad6e149629
- Executive Team Polygon: 0x3fee50d2888f2f7106fcdc0120295eba3ae59245
Inflows / Outflows
At the beginning of the year the treasury held 2.5 million USDC, while, as of 2023-04-16, it holds approximately 2.2 million USDC. Most of this expense comes from the 2023-Q1 Team Budget Requests (around 318K USDC) which we will review later in detail. 100K was spent in strengthening the POL position for the POOL token on Ethereum, but also 100K was returned to the treasury from excess prize liquidity.
At the beginning of the year the treasury held 4.4 million POOL, while, as of 2023-04-16, it holds approximately 4 million POOL. It is important to note that approximately 200K POOL has been used to strengthen the POL position for the POOL token on Ethereum. The 2023-Q2 Team Budget Requests amount to approximately 123K POOL.
The main expense this past quarter (around $450K) has been the Team Budget Requests of the different teams that support the protocol and the Grants dedicated to support the PoolTogether ecosystem.
Something important to notice is that there has been a shift in the origin of the expenses. Prevously, most of them came from the Grants Team. Now, most of the expenses are coming from different teams.
The prize subsidy, which was the main expense in 2022 has been significantly reduced to the point of breakeven. In fact 100K prize liquidity was returned to the Treasury this quarter.
Treasury Runway
The 2023-Q2 TBR process has meant that around $148.5K monthly are being spent on average from the treasury. Taking this into account, the current PoolTogether Treasury and an average price of $0.70 for the POOL token, the expected runway would be around 3.5 years.
