Gitcoin Financial Reporting

Hi all,

Llama is pleased to present the very first GitcoinDAO Treasury Report for September 2021. A fresh Treasury report will be published here each month providing insight into the performance of GitCoin.

The Financial statements are split into transactions denoted in the governance token $GTC and separate transactions in stablecoins showing the income generated from the inception of the DAO through to September.

We have also presented a token flow statement. Denoted in both $GTC and stablecoin movements.

We are working to build out a balance sheet for our next iteration of this report and we welcome any feedback.

https://www.canva.com/design/DAEs4t7TzsE/Q2--4jnA6n5W4s9kgsQgzg/view?utm_content=DAEs4t7TzsE&utm_campaign=designshare&utm_medium=link&utm_source=publishsharelink

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Hi all,

GitCoin October financial Statements

Please see detailed above our second iteration of the GitcoinDAO treasury report for October 2021. As with previous months, the statements are split into transactions denoted in the governance token GTC and separate transactions in stablecoins. We have taken onboard your feedback in relation to donations to the DAO and have amended the ‘Revenue’ line to reflect more accurately that these are in fact donations.

This month we have incorporated a consolidated financial statement report which shows both GTC transactions and stable coins. This shows both inflow and outflow in USD terms. Noting that we have used the month-end spot rate to translate GTC.

Key highlights

  • Gitcoin treasury has grown 93.3% from $40.2m to $77.7m as a result of positive price movement in $GTC
  • Total contributor rewards were $644.6k in October up 218% from September
  • The grant for CLR.Fund was paid out in October totaling 40,000 GTC or $340.8k using month end spot rate. CLR.Fund is another prominent Quadratic Funding project in the Ethereum ecosystem with a mission/ethos that is similar to Gitcoin.

We welcome any feedback you have in relation to the report and please let us know what you would like to see in the next iteration.

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Hi all,

Gitcoin November Financial Statements

Please find above the third iteration of the GitcoinDAO treasury report for November 2021. As with previous months, the statements are split into transactions denoted in the governance token GTC and separate transactions in stablecoins. We have included a consolidated profit/(loss) account that translates the GTC transactions into $USD to allow for comparison in a denomination that can easily be relatable to many reading the report.

We have also included a key financial highlights section that shows the key themes this month along with some background as to the reasons for the movement.

TLDR

  • Total treasury balance up 104% to $158.8m. Due to a significant rise in token value to $17.13 at the month-end
  • Total contributor rewards were up in USD terms by 173% to $1.12m, however, net outflows of GTC are down from last month suggesting the increase is due to a slight rise in stable coin denominated payments and also the rise in token price
  • FDD had the largest workstream spend in relation to contributor rewards totaling 19,750 GTC.

Please do let the Llama team and I know what you would like to see in our next iteration of this report.

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Hi all,

Please find above the GitcoinDAO treasury report for December 2021. As with previous months, the statements are split into transactions denoted in the governance token $GTC and separate transactions in stablecoins. We have included a consolidated profit/(loss) account that translates the GTC transactions into $USD to allow for comparison in a denomination that can easily be relatable to many reading the report.

Those that regularly read the report will notice some design changes. Please do read, share and add a comment to let us know what you would like to see in our next iteration of this report.

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February 2022 Financial Statements

Llama is pleased to present the February Financial Statements

Please find above the GitcoinDAO treasury report for February 2022. As with previous months, the statements are split into transactions denoted in the governance token $GTC and separate transactions in stablecoins. We have included a consolidated profit/(loss) account that translates the GTC transactions into $USD to allow for comparison in a denomination that can easily be relatable to many reading the report.

This months iteration has some adjustments within as more operations wallets were identified and included into our accounting, this has made some slight adjustments to previous months however the transactions were mainly swaps of $GTC to stablecoins, mostly only effecting the balance sheet and not the income statement.

Highlights

  • Total $GTC outflow compared to January is down 42.9% mostly due to January being high because of a grant being funded
  • Gitcoin Ops is now included within the financial reporting, it has totaled $93.6k in rewards since inception
  • Total contributor rewards are $3.94m since genesis and is an average of $657.3k per month (stated at month-end GTC rates using Coingecko)
  • Total treasury holdings have decreased 41.7% since the start of 2022, which is a result of GTC token price depreciation. Llama has proposed a treasury diversification which will diversify the treasury away from being 99% $GTC. Gitcoin Treasury Diversification

Please do read, share and add a comment to let us know what you would like to see in our next iteration of this report.

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Are there March and April reports available yet? Thank you!

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We will be publishing the March and April report combined hopefully by tomorrow - we are just working to finalize the content.

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Hi all,

Please find above the GitcoinDAO treasury report for March and April 2022. As with previous months, the statements are split into transactions denoted in the governance token $GTC and separate transactions in stablecoins. We have included a consolidated profit/(loss) account that translates the GTC transactions into $USD to allow for comparison in a denomination that can easily be relatable to many reading the report.

Please do read, share and add a comment to let us know what you would like to see in our next iteration of this report.

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Thanks for this report!

This is a quote from March 22 regarding the report of February

Few updates were given in that regard and we can see on the latest report that we’re still around 99% GTC.

What is the current treasury diversification plan ? It might be best if strategies were defined ahead of time and included in the financial report or on the governance forum so that we can give feedback.

We should also consider selling GTC at some defined prices so that we can accumulate more stables and blue chips during the next bull run.

Hi Huxwell, thank you for the questions here. We do have a thread with updates here in case it’s helpful.

To provide a little more detail: the working group is still actively working on the diversification, but the process has been slower than we initially expected for a few reasons. Most notably, market conditions weakened over the past few months and demand for publicly traded governance tokens from institutional partners slowed down. Kyle has written about this in more detail in the thread linked above. We’re still in talks with potential partners and are exploring alternative mechanisms that will allow Gitcoin DAO to have stables in the treasury.

I agree with your final point; during the next bull run we should proactively think about diversifying the treasury to protect against drops in GTC.

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Hi Elliott,

Thank you for sharing this. Can I ask why March and April reports had to be combined? And why use end-of-april GTC prices but a latest transfer date of May 18th 2022 (slide 4)?

This GTC price decision significantly changes the treasury outlook from having $40.4M to $23.7M (a >40% reduction).

Could you also share more details about why the treasury diversification into stables could not occur in April or sooner? Llama’s first post about treasury diversification (proposing swapping $15M of GTC into stables, which was at the time 24% of the treasury and is now 63%) is from January 13th. Based on the thread, perhaps it has been a slow search for institutional partners. I am confused why ‘institutional partners’ are needed at all to swap GTC into DAI or USDC (this may be my ignorance). An earlier diversification could have resulted in a much better treasury outlook than we now face.

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Hi @umarkhaneth - please see my comment above regarding the timing of the treasury diversification, as well as this thread for more details. Unfortunately it’s not quite as easy as simply swapping GTC into DAI or USDC; while Gitcoin DAO might have been able to get some stables by doing so, there is not enough liquidity to do so on-chain in a timely fashion. Had we swapped GTC on the open market, we would have experienced material slippage and a negative price impact on GTC. Further, selling GTC in the open market would have resulted in the token ending up in the hands of short-term holders; the benefit of working with institutional partners is that we can select partners who are aligned and long-term oriented.

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Hey,

I would love to know which addresses you are tracking regarding the GitcoinDAO Treasury Breakdown on page 5.

Our Treasury Vester GTC balance is 26M and the Timelock GTC balance is 24M.

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Just highlighting this chart from this much needed and nicely done report. I’ve been wanting to see this since day one. This should be on a dashboard somewhere. Every participant in every workstream should constantly know his/her/their position in this chart at all times. Since the DAO itself has no real from-the-top organization, the participants must be responsible to build an organization. Part of that is to know one’s own place, shape, and size.

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Def agree.

@schlabach and @Elliott - I suspect PGF should be cut in half and moved to May? Perhaps they paid early which is why it is double in Mar, then no payment in March?

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Very interesting! Surprised to see the growth/reduction in the various workstreams as the abstract numbers didn’t give such an informative picture.
Thanks for posting this.

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Definetely agree.

I’ll check with @ivanmolto if we can add a bar chart per month to the GitcoinDAO Governance & Financial overview.

Both GTC and stablecoin balances are currently being tracked and visualized over time for each workstream:

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From the April report disclaimer:

As such, there may exist errors or inaccuracies that materially misstate the financial statements. We are not responsible for any financial losses or adverse outcomes that may result from making investment decision based on the data presented herein. Further, by viewing this report you agree that the statements in this report do not constitute a representation, warranty or guaranty regarding any matter, and you are not relying thereon, but will conduct your own due diligence.

How can we as a DAO do our job and fact check these reports? It seems that asking questions on the forum here is a good start, but specifically, how can we check the numbers? Is there anyone in the DAO who has the knowledge and skills to accurately fact check things (maybe DAO Ops)?

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I’d also ask the following question: “How can we hone the product/market fit of the engagement with Llama? What financial forecasting needs does the DAO have + how can they been more deeply met by reporting?”

Maybe @kyle has an opinion here.

Excellent. This type of information is so desperately needed.

Every workstream proposal should have a section where they point to this type of information and discuss exactly how their workstream fits into the larger whole.

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