Year 2 SP Funding Impact Analysis

General Chat
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As discussed in this thread from six months ago I’ve prepared an updated analysis on the treasury impact of funding SP’s for year 2 in aggregate. Now that all the numbers are public or very soon to be it is possible to present this to the community. It would be optimal in the future if more time were allowed between funding proposals being posted and pushing them to a vote so there’s time to get all proposals posted, do this analysis, and let the community assess it.

Year 2 SP Funding Impact Analysis spreadsheet: Balancer DAO Financials July 2023 - Google Sheets

One from 6 months ago for comparison: Balancer DAO Financials - Google Sheets

  • The existing reserves are what’s left from the sale of 250k BAL earlier in the year. OpCo and the Foundation both reference these funds in their proposals. Obviously in the Year 3 projection there are no more existing reserves so that’s reflected in the higher number there.

  • In some cases like the Maxi proposal the USDC portion could be converted to liquid BAL if necessary. I put USDC because I felt we are in a position to support that and limit the amount of liquid BAL being dispersed by the treasury. If the community disagrees and feels we need to build deeper USDC reserves I’m happy to adjust the proposal.

Please note the revenue projector where you can simulate various market conditions and their impact.

Overall the high level takeaways are USDC costs are down (despite cases like Maxis spending USDC vs liquid BAL now) and baseline revenue projection is up versus the year 1 analysis six months ago. Combined with the sale of 250k BAL we’re in no danger of lacking Year 2 or Year 3 funding in my view regardless of market conditions.

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Thanks for putting this together, Solar.

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Highly appreciated. Exactly what we laid out int the temp check thread. This is rather simple but powerful to assess runway and put costs of SPs into perspective.

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This is awesome–love it.

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So accordingly to the spreadsheet, the Balancer DAO has a net positive cash flow between USDC and veBal. This is great to see!

By just eyeballing numbers feels like prioritizing, in general, spending in veBal/bal instead of udsc (of and when possible) could be a sensitive way to increase treasury stash for emergencies. Nice job.

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In general, also, what seems important from this report is that there is not a lot of stable buffer in the treasury. In this sense, making an effort to build a bigger amount of that to put aside would make the DAO a lot more resilient to any external and market event.

This is what to me transpires from this report. Which is quite good to have a high level overview of the financial state of the dao.

Thanks!

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Thanks for taking the time to update us with the recent numbers! Very informative!

The projection is to spend around 4 million to run Balancer for the next 12 months.

And the estimated revenue is over 4.5 million (extrapolating the first six months to the next ones). If we fall short, there’s a buffer from the 250k BAL to cover.

I do agree that it would be a good practice to have more time to have a similar analysis between the funding ask and the actual vote for it.

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