Thank you @underthesea for gathering and presenting the data.
There wasn’t any specific question, but rather a request for discussion so I’m going to add some random thoughts:
Maximizing Runway
To maximize runway, I believe we should rely more heavily on the POOL in the treasury. Those who are building the protocol full-time want to hold more POOL, so leaning on POOL rather than stables would make the treasury last longer.
The PTBR for G9 Software last quarter was entirely in stables, which meant that the treasury wasn’t utilizing the available POOL. By allowing contributors to request budget in POOL, the runway can be extended.
Managing Runway
There is still work to do to build out V5, the tokenomics, and to shut down V4. We need to keep spending until the protocol is ready, at which point spending can be dialed down. In that way, I see our spending being front-loaded while we wait for the next bull run.
That being said, we should still try to spend efficiently.
Desired Longevity
I believe that we need to ensure we have runway until the next bull run, at which point the protocol can diversify the treasury. I estimate we’ll need to last about 21 more months, or 7 quarters.
Yes, this number is made up. However, it is based on the Bitcoin halvenings. Each bull peak has occurred approximately a year and a half after each Bitcoin halvening.
Bitcoin Halvenings:
| Num | Date |
|---|---|
| #1 | November 28, 2012 |
| #2 | July 09, 2016 |
| #3 | May 11, 2020 |
| #4 | Estimated to occur in April, 2024 |
Bull peaks:
| Num | Date | Months after halvening |
|---|---|---|
| #1 | Dec 2013 | 13 months after |
| #2 | Dec 2017 | 17 months after |
| #3 | Nov 2021 | 18 months after |
| #4 | Estimated Aug 2025 | 16 months after |
Some Feedback
I think it would be clearer to include all assets in the treasury, rather than excluding PoL or ETH. About ~$410k in ETH and PoL was excluded from the runway, but that was under the assumption that it would all be used for protocol owned liquidity.
At the end of the day all of it can be used for runway; it’s just a matter of what portions we want to tie up temporarily in efforts like prize asset liquidity or PoL. If ownership of PoL is burned then we can truly exclude it and consider it “spent”.