Proposed uses of reserves
- 01
- Supporting project operations and development.
- 02
- Funding approved marketing and community initiatives.
- 03
- Meeting professional, compliance-related and administrative costs.
- 04
- Supporting potential ecosystem collaborations and trading arrangements.
- 05
- Retaining resources for changing project requirements.
Questions of control
Who can authorize expenditure or move treasury assets?
Are multiple approvals required, and what happens if an authorized person leaves?
What limits apply to related-party payments and conflicts of interest?
How are operational wallets separated from reward, vesting and liquidity allocations?
Which records can participants inspect without exposing private or security-sensitive information?
Reporting that makes reserves understandable
- 01
- Opening balances, movements and closing balances for the reporting period.
- 02
- The difference between token balances and cash or other liquid resources.
- 03
- Expenditure categories, commitments and material liabilities.
- 04
- The method used to value treasury-held tokens and the limits of that valuation.
- 05
- Relevant wallet identifiers and any changes to control arrangements.
Burns and buybacks
A burn should identify the amount, mechanism and transaction evidence.
A buyback should identify its authority, funding and the eventual treatment of acquired tokens.
Buying tokens and burning tokens are different actions; either may occur without the other.
A proposal to undertake these actions is not a commitment to support a market price.
Vesting and long-term commitments
Release schedules should identify amounts, dates, beneficiaries by category and exceptional release conditions.
A stated vesting policy should be supported by enforceable agreements or inspectable controls, as applicable.