[DAO Discussion] Periodic Treasury Reporting

General Discussion
7

From the events of yesterday, I think it’s even more important to build confidence in the backing price, and the number on the dashboard is implied to be a liquid value that can be used to buy back all TIME in circulation.

Here’s what’s available from public sources, as of 12:00 UTC on 18Jan2022 (in (000’s)

  • 1,038,079 (Debank balance of 4 treasury wallets)
  • (300,847) TIME in wallets
  • (90,219) 1/2 of wMEMO-MIM LP
  • (9,855) 1/2 of wMEMO-MIM LP
  • 637,158 Total non-TIME balance

For the backing calculation:

  • 1,116,495 Total supply of TIME
  • (248,019) DAO-held TIME
  • (8,237) TIME in DAO-owned LP
  • (82,559) underlying TIME in DAO-owned wMEMO LP
  • 777,860 Circulating TIME
  • 15,936 wMEMO equivalent of circulating TIME

That results in a backing of $39,982 per wMEMO.

However, I think it’s inaccurate to say the protocol could buy back all circulating tokens at this price. First, for the protocol to buy back 15,936 wMEMO at $39982, the stable half of the LP would have to grow by $637M, but we’re already counting the LP stables as backing. We can’t use LP stables to buy back circulating tokens.

Second, $64M of the treasury are BSGG tokens. I understand that some or all of these tokens are subject to lock-up, and can’t be sold. And even if they can be sold, their nominal value far exceeds the available liquidity, and therefore can’t really be used to buy back wMEMO, since it can’t be converted to MIM at anything close to their nominal value.

Backing out LP stables and BSGG from treasury, we get $473.4M, or $29,700 per wMEMO.

It may very well be possible to defend the $57,000 price stated as backing on the dashboard, but the statement “we can buy back all circulating tokens at this price,” is not supported by publicly available evidence.

If there are additional treasury resources not visible or priced in Debank, I would love for my accounting to be corrected. Thus the proposal.

8 Likes
8

This is not called forum by coincidence, we have to act up politicians in order to generate engagement, amidst what happened yesterday this will likely flew bellow everyone’s radar, and we don’t have a Dani tweet to raise awareness.

This kind falls into marketing and PR/IR issues (mostly the latter) so maybe we can merge all of this in one proposal to be pushed?

1 Like
9

Hey @Barrel_Aged what you think about merging with this one ? Wonderland is evolving. We need to do a better job of communicating that internally and externally and so we can get to a final WIP the assess most of the PR? If you green light it i’ll ask the other proposer. (I would suggest to remove the website thing for now, dont see that beign pushed)

10

Agreed. Hate to use some tardfi lingo but would like both a balance sheet report (treasury) and also an income statement for the period. Esp since wonderland is being reframed as an investment vehicle. I would love to put more money in esp since I think daniele/sifu will outperform hedge funds / vc but would want to make sure expenses are not crazy compared to a hedge fund fee structure.

11

was there any comment from team on how the website math is done vs this 29700 number?

1 Like
12

Sifu wallet interation with treasury also need to be checked periodically. Which one is team payment? How much is payment? When will it get paid?

Aside from treasury, sifu claims that treasury is generating 1mm per day. We have to be able to verify this.

4 Likes
13

Given some recent controversies regarding team allocations, I would revise this to include disbursements to the team:

  • Treasury balance at the end of the prior period
  • (plus) Capital raised from mints and treasury sales
  • (plus) Changes in investment values (unrealized gains)
  • (plus) Returns from deployed assets (realized gains)
  • (less) Team disbursements
  • (less) Other expenses
  • = Current treasury balance
6 Likes
14

Id say to add the deployment of capital for investment on the “minus” side.

15

Hi all,
I fully agree with this proposal. Not having this transparency is opening up the possibility for rumours to emerge and become immensely negative for the perception and confidence in the treasury management. If you look at all the news about the salary payment for instance. Defining when these are taken out, the size (even if it’s variable) would greatly increase the confidence and block possible fud. It also makes sense to see clearly which part of the treasury is locked, which part is used as collateral and so on.

Addition: if a part of the treasury is reserved for (recurrent) salary purposes, it should be clear in the report. It should also be clear whether there is any open salary payments built from the past that remained in the treasury as these are not part of the backing.

2 Likes
16

The proposal seems good to me, in fact Abracadabra Money does it that way too, they publish all settlement statistics, percentage of pairs, etc. But you have to keep one thing in mind, has mentioned little, Dani said that the Wonderland team is small, because it needs more members committed to such tasks, Sifu cannot be the communicator all the time, that’s why 0xWicked e is doing the rest in Medium, which is excellent his articles, more staff is needed, at least that is what I think, because those accounting analyzes require a lot of time and Sifu cannot do it alone, what happens is that the DAO grew so much that they themselves did not expect it like that.

17

This is for the DAO’s own good, we have to push it and they figure whos doing what afterwards. This will ease a lot of personal vendettas out there against Wonderland. Abracadabra has a deep analytics page and yet ppl still find ways to criticize, now look at our state without one.

1 Like
18

Fully support this, deep transparency may not be what everyone is seeking but in the end it will reduce FUD during bear markets and underpin confidence
Wonderland is an investment vehicle and I back the founders to find great investment opportunities and to create value. The wonderland community is large and enthusiastic and this attribute can be used by Dani,Sifu when buying into projects at discounts. Powerful combination ,excellent opportunity, great potential.
Just get the basics correct like publishing the numbers.

2 Likes
19

Thanks everyone for your comments.

I’ve submitted this as an RFC. As soon as it clears moderation it should appear in the RFC category.

2 Likes
20

Fully agree on this point…I vote for this proposal to go to the next stage and final adoption…The undue focus on price of token is quite distressing…WL has quite a few good proposals cleared and investments made in osme of them…betswapp, NFT and Liquid staking…these kind of investments should be more sought after…now with the bloodbath in cryptoland, I am sure it throws up lots of opportunities for effectively utilizing treasury capital to get a higher RoI…the MCap will follow suit when the rate of income growth is seen…

This protocol is only a few months old yet we have achieved so much in terms of getting the treasury and some of the great investments…let’s keep that momentum going…

Getting a chunk of curve, higher stake in AMM (popsicle kind) and Dex (sushi) will help generate more revenue for the DAO and hence price will go up when these income streams are well placed.

1 Like
21

Is this helpful…Although it does not have the full reporting as suggested in this proposal…can this be a tarting point and we can add sections on top of this

Wonderland

22

Fully support this effort. Move forward on voting.

23

Yes, I support this effort fully.

24

@DrB_OGs_Exit_Liquidi

This discussion has moved to the next step (Request for Comments).
https://dao.wonderland.money/t/rfc-periodic-treasury-reporting/6729/5