[RFC] DAO Treasury Runway and Continuity Planning

Proposals
1

Dear Cryptex Community,

I want to raise something before turning it into any formal proposal.

The DAO is getting close to an important point. A lot of CTX from the treasury has already been allocated over the years. Most recently, the May-August 2026 operating budget approved 725,000 CTX, 100k CTX has now been approved for Season 2 staking rewards, 38,748 CTX was approved for Keeper Rewards, and 600k CTX is being used for the new market maker agreement. The remaining unallocated CTX is becoming limited. The whole CTX supply will be fully circulating at some point.

Before more CTX is allocated, I think there is a need for a treasury runway and continuity plan.

For me the main question is simple: what is the plan once the DAO treasury cannot keep funding things mainly through CTX allocations?

If there is a credible path for future funding, revenue or value flow back to the DAO / CTX holders, that would make future treasury decisions much easier. But if the only plan is to keep allocating the remaining CTX until the treasury is depleted, then CTX holders should know that early and plan accordingly.

Before drafting anything formal, I would like to give core contributors time to clarify:

  1. Can contributors provide the CTX / stablecoin activity update discussed in the May-August budget thread and clarify the cadence going forward?

  2. What is the operating plan after the current budget period ends?

  3. What is the expected plan when there is no more CTX left in the DAO treasury? Would contributor work continue through another funding path and are alternative funding paths currently being explored or would work depend mainly on future DAO treasury allocations?

  4. At a high level, is future value from Cryptex products intended to flow back to the DAO, Cryptex Finance LLC, CTX holders, or somewhere else? Can any of these fees be used to fund operations in the future?

I understand that non public or regulated product details cannot be shared. I am not asking for confidential information, securities filing details, or price guarantees. But the DAO should still understand the high level alignment and treasury plan before the remaining assets are depleted further.

Depending on the answers, delegates can then discuss whether a framework is needed for managing and protecting part of the remaining DAO controlled assets, including treasury CTX, MM receivables, and SubDAO assets.

I think it is better to have this discussion early and calmly, while the DAO still has options, rather than waiting until treasury decisions become urgent.

2

Thanks for raising this, @dnkta.eth

These are fair questions and worth addressing directly. On the CTX/stablecoin activity update: the May–August operating budget is being utilized as outlined in the original proposal, with funds drawn down category by category consistent with what was approved, and that will continue through the end of the period; on reporting cadence going forward, we think this is best tied to the governance constitution update currently in progress, since it includes a section on reporting and accountability for service providers to the DAO, and we’d rather formalize a cadence through that process than commit to something ad hoc here.

On the operating plan after the current budget ends and what happens if DAO treasury CTX runs out, we’re treating these together since they’re closely linked: we’re well aware current market conditions aren’t favorable, and this isn’t lost on contributors, who share the same concerns about token price and runway as the rest of the community; operations can’t simply pause once a budget period ends, since that would halt the activities the project depends on to move forward, so we are actively exploring alternative funding options so that contributor work and core operations can continue without disruption in the event a budget runs out before a new one is approved, and while we’re not in a position to share specifics on those options yet, we want to be transparent that this exploration is actively happening and is a priority.

On where future value from Cryptex products is intended to flow, this is tied closely to the DAO’s current legal status: since the DAO does not yet have a legal entity, it cannot establish or sign a binding agreement with Cryptex Finance LLC, and that kind of formal arrangement is something we’re committed to exploring once the DAO has completed its process of creating a legal wrapper; in the meantime, our expectation, though with no guarantees on timing or amount, is that once the product begins generating revenue, that revenue will first be used to cover operating expenses without drawing on the DAO treasury, and whatever remains after covering those costs will be returned to the DAO in the form of CTX through buybacks, this is the extent of what’s currently possible given the absence of a legal entity, and we’d take this opportunity to reiterate the importance of the community moving forward on establishing the DAO’s legal wrapper, since that would open the door to more specific agreements between the DAO and Cryptex Finance LLC.

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3

This may be a dumb question, but are we saying the DAO must have a legal wrapper in order for any product revenue beyond operating expenses to go back into the treasury?