Motivation
After extensive discussions with key stakeholders about the DAO’s BAL holdings and their continuous decline, it is important to closely examine the current reserves. Given the dependency of numerous initiatives on BAL, we have prepared this concise analysis to quantify and budget for the available reserves by the end of this year. This analysis takes into account service provider renewals and additional BAL allocation proposals/strategic partnerships, encompassing all expected BAL inflows and outflows for the remainder of 2024.
All necessary BAL balances, pricing, links to addresses and forum / Snapshot proposals are availbable in the following spreadsheet:
https://docs.google.com/spreadsheets/d/1ORG6K0_KyWtd5g1dcCnHonHzQTQ2ZE6b3TdOTMlpyw0/edit?usp=sharing
Key Findings
Current Holdings
Currently, across all chains, vaults, and liquidity positions, the DAO holds 4,520,786 BAL.
Inflows
Due to the termination of Wonderland’s collaboration with the Balancer DAO, the unvested tokens remaining in the contract, 242,286 BAL, will be returned to the DAO multisig.
Outflows
Expected expenses in BAL for H2 2024 include Service Providers (estimated using the latest financial performance report) and karpatkey fees bases as per BIP-648.
While they aren’t classified as expenses, additional BAL deployments /commitments planned for this year include:
- CoW<>BAL partnership.
- Market making strategy to improve CEX liquidity.
- Pending proposals on the forum:
Taking into account expected BAL fund flows, we can estimate an equity of 3,295,929 BAL before end of year (EOY).
Yet, taking into account $1.25mln worth of BAL to earmark for the self insurance fund, there will be an estimated 2,689,756 BAL available for future endeavors by the end of 2024.
*Note that because the CoW Arrangement and both earmarks are quoted in dollar value and not BAL amounts, the balances needed to cover these engagements can vary over time.