TLDR
The core contributors propose consolidating the Trading Treasury and Operations Treasury into a single treasury pool: The DAO Treasury. Historically, the DAO maintained two “Treasuries”, one focused on generating profits (e.g., trading and revenue-generating activities) and another devoted to covering operational expenses. By merging these into one combined balance, Reform can streamline funding and bookkeeping while maintaining clear, transparent quarterly reporting on revenue, costs, and overall treasury growth.
Moreover, as Reform focuses on three core revenue streams: (1) rebates, (2) designated market making, and (3) the Luigi_Bot, costs also continue to rise. A new buyback model is proposed to ensure the DAO grows sustainably: each quarter, 65% of positive net revenue will fund buybacks, while 35% will strengthen the DAO Treasury. This approach boosts RFRM token support while sustaining the treasury for continued development and operations.
Authors
Core Contributors
The Why of the Proposal
“Experimentation is the key to innovation, and innovation is the key to long-term profitability.” — Elon Musk
The very same goes for Reform. Initially a dual-treasury system was created to separate trading and operational funds. However, managing two wallets can obscure the true financial health of the DAO and introduce unnecessary complexity. With the proposed merger into a single treasury pool, every expense and revenue source is fully transparent and reported quarterly to the community.
Additionally, the current market environment underscores the importance of being efficient, both in how we allocate costs and how we calculate buybacks. By combining these treasuries into one pool and adjusting the buyback formula, we ensure the DAO can remain self-sustaining, keep growing its treasury, and meaningfully support the RFRM token.
The Longer Explanation of the Proposal
Reform DAO has three primary revenue drivers:
- Rebates — Fees earned through generating trading volume on centralized exchanges.
- Designated Market Making (DMM) — Earnings from providing liquidity and market structure to projects.
- Luigi_Bot — Telegram bot revenue, accruing from fees generated by users.
At the same time, operational costs, ranging from development to marketing, have increased as Reform continues to expand. Under the new proposal:
- Unified DAO Treasury:
- The Trading Treasury and Operations Treasury are consolidated into one.
- All revenues (rebates, DMM fees, Luigi_Bot proceeds) and costs (payroll, development, marketing, etc.) flow in and out of this unified treasury.
- Quarterly Reporting:
- Every three months, Reform will publish a transparent report showing incoming revenue, outgoing expenses, and net revenue. Leading to quarterly buybacks. With this development monthly reports will be replaced by quarterly ones.
- The report will also show how much of the net revenue goes toward buybacks versus expanding the DAO Treasury.
- New Buyback Model: The calculation ensures the DAO remains self-sustaining before funneling funds into buybacks. Specifically:
Net Revenue = Gross Revenue − Costs
- 65% of net revenue funds RFRM buybacks.
- 35% of net revenue remains in the DAO Treasury to grow it.
This approach balances the goal of supporting the token price with the need to fund ongoing and future DAO initiatives. By merging treasuries, the DAO will reduce redundant transfers and administration, making it simpler to track overall health. In turn, the quarterly breakdowns will make it easier for token holders to understand and evaluate both the project’s profitability and how surplus capital is used.
Budget
No additional budget is required for this proposal. All operations are already funded via the DAOʼs revenue streams and existing reserves.
Poll
Please cast your vote and provide feedback on whether you are “for” or “against” this proposal before it proceeds to vote.reformdao.com
- For
- Against