gm everyone,
First, I want to say I am not opposed to funding operations and I appreciate the work that went into preparing the budget as well as the proposed cost reductions. I understand the importance of getting BAGZ live and continuing protocol development.
That said, this budget makes the DAO’s runway highly dependent on BAGZ becoming live and eventually producing meaningful revenue. I hope that happens and I understand why contributors are focused on getting it across the finish line. But until that revenue exists and is visible to the DAO, I think we need to be very clear about the treasury assumptions behind this request.
The proposal requests 725,000 CTX for May through August, which is a 4-month period. That is 7.25% of the total CTX supply. I think that percentage is important for everyone to understand, because this is a meaningful amount of CTX to convert into operating funds over a short period of time.
My main asks are:
1. Monthly budget execution reporting
The DAO should receive a monthly budget execution report showing:
- CTX converted during the month
- average realized conversion rate
- execution route / venue where possible
- remaining CTX and any USD/stable operating funds
To be clear, this reporting request is not about micromanaging contributors or individual payments. It is about aggregate transparency so tokenholders can understand how the approved budget is being executed.
2. Unused CTX should return to the DAO treasury
I would like it stated directly in the proposal or confirmed in this thread: any unused CTX from the May-August budget should return to the DAO treasury.
3. Market-impact-conscious execution
The proposal should include market-impact-conscious execution language around CTX conversions.
In my view, it would be preferable to actively explore OTC buyers, strategic investors, or other direct counterparties where possible, instead of relying mainly on market-maker / CEX execution. This has been raised many times in the past and I would like the contributors to confirm whether OTC or direct investor routes are being actively explored for this budget.
4. Budget math at current CTX prices
The budget math should be clarified at current CTX prices.
Based on the sheet, revised monthly burn appears to be around $122k/month, or roughly $489k for the 4-month May-August period. 725k CTX only covers that amount if CTX is converted around ~$0.67.
If the current market price is lower, then either additional existing CTX from the contributor multisig is expected to be used, or the requested CTX may not fully cover the stated operating need. I think this should be made explicit.
5. Liquid treasury vs encumbered / separate assets
The DAO position should distinguish between liquid treasury and encumbered / separate assets.
The 525k CTX loan / market-making balance, the subDAO funds, and ACC funds are DAO assets, but they are not all the same as immediately available liquid operating treasury. For evaluating runway, I think these buckets should be shown separately.
6. Post-August funding plan
I would also like more clarity on the post-August funding plan if BAGZ revenue is not yet live or not yet meaningful by then.
If the DAO is approving another large CTX-denominated operating budget now, tokenholders should understand what happens when this budget runs out. Will the core team continue working? Will another CTX budget be requested? Will operations be reduced further? What is the plan under different revenue scenarios?
This is about making sure tokenholders can understand the real runway, the market impact of budget execution, what remains after this budget period, and how dependent the DAO is on BAGZ revenue materializing in time.
In the past, the DAO may have accepted less detailed reporting around CTX conversions, but the current situation is different. The requested budget is large relative to liquid treasury and supply, CTX price is low and the DAO needs to understand how long the treasury can realistically continue funding operations if BAGZ revenue is delayed or not yet meaningful.
I would be more comfortable supporting the budget if these points are clarified directly in the proposal or committed to in this thread.