Over the past several months we've worked in the open to develop a 12-month budget for the Treasury Guild. This budget can be seen at the link listed below. **This budget is a spend approval - not a spend mandate.** Here is a walkthrough guide for reading it: * When you open the budget you will find three tabs: > 1. "Budget" - a line-by-line and month-to-month breakdown of expenses. > 2. "Assumptions" - contains all variable inputs to the budget. This should serve as a focal point for any discussion. > 3. "Assets" - the treasury's assets updated on May 20th, 2022. * The budget is broken into three high-level categories, respectively: > 1. Liquidity Incentives - which primarily comprise a budget for incentivizing liquidity providers for T LPs, tBTC LPs, and thUSD LPs. Historically, we have used Votium and bribe.crv for this. Going forward we plan to use Paladin's Warden application, which have started testing this week. > 2. Compensation - comprises the stipends for all existing committee members, the Threshold council, and our Director of Research. Additionally we have a budget for the development and audit of thUSD as informed by @ben and @EvandroSaturnino . And lastly, we have budgeted for a Project Manager role, which is currently vacant. > 3. Other - this categories includes a conservative budget for (a) the tbtc coverage pool rewards, (b) conferences and hackathons, (c) treasury diversification, and (d) the repayment of the DAO's T-ETH loan. Let's breakdown 3(c) and 3(d) a little deeper since this is the least obvious: >3(c) -> We plan to diversify the treasury into ~$5m of tBTC and ~$5m of Convex. This is the equivalent of ~2400 ETH worth of each. The purpose of the tBTC purchases is to help build liquidity for our flagship product. The purpose of the Convex purchases is to help direct liquidity towards all of our product offerings. Rather than indicating a schedule, we place this entire expense in the final month of the schedule. However, we intend to do this opportunistically, whenever it is in our best interests. This is a deliberate decision to avoid being front run. >3(d) -> The DAO's T-ETH loan should be paid back so that we can start to accrue the fees and rewards and so that we can avoid any significant IL accruing. For that reason, we have included a monthly payback schedule. More information about the loan can be found in this post: https://forum.threshold.network/t/proposal-eth-loan-to-threshold-dao/196 ---- **Note that:** * This does not include revenues as it is purely a spending approval. * Not every line item is an expense! The majority of the spending in this proposal is to diversify the treasury, which should serve to preserve or increase the value of the treasury over time. * With our current protocol-owned-liquidity (that we plan to increase), we will capture a significant share of the liquidity incentives ourselves. * This is marked in USD, however the expenses and the treasury's assets are primarily in T. If there are significant changes (which we define as +/- 50%) to the market value of T the Treasury Guild should consider revising the budget and seeking re-approval. https://docs.google.com/spreadsheets/d/1pRL6RaUIts-X4DRacp7P8Lx1dTbtR87q-102Rzhm-fI/edit?usp=sharing **I propose the following schedule:** * Forum Discussion Started - 2022-05-22 * Forum Discussion Concluded - 2022-05-29 * Snapshot Vote Started - 2022-05-29 * Snapshot Vote Concluded - 2022-06-01

These two incentive schemes will be put to the token-holder DAO for approval. ****** *(1) One-off Migration & Stake Bonus* All stakers who – (a) begin staking (b) correctly configure their Proxy Re-Encryption operator node (c) set a governance delegatee address **prior to May 15th** (originally April 30th) and (d) continue to stake and operate a PRE operator node through the launch of Threshold’s full applications (including the tBTCv2 bridge) – will be distributed a special token bonus, equivalent to a **2.5%** growth in their stake size. This bonus intended to motivate further upgrading of KEEP/NU into T, and putting that T to use. Following the principles of the stable yield mechanism, the number of tokens issued for the bonus will be calculated based on the average staking rate. For example, if the average staking rate is 33%, then generating a 2.5% yield for all stakes requires the Council to distribute 82.5m T as the one-off bonus sum. Note that all rewards, including the bonus, will accrue to staker addresses on-chain but will be inaccessible until the launch of full apps on Threshold, at which point it can be withdrawn. To qualify for the bonus, your stake and operator node must remain active until then. If you stop your operator node or withdraw your stake, you forfeit the bonus. A reminder that the future *stake* unbonding duration will be on a per-app basis and governable, but the default universal minimum will be around 2 or 3 months. ****** *(2) Ongoing Stable Yield* From **May 16th** onwards, reward amounts will be based on the duration you are staked and reliably operating a PRE node. The target annual *yield* will be **15%.** For example, a staker who starts staking on June 15th would see their stake grow by (15/365 * 15% = 0.62%) in the 15 days up until June 30th. The nominal inflation rate and monthly issuance figure will again be dependent on the average staking rate. ****** These two incentive schemes are only at the proposal stage – they still need to be validated via DAO governance. To give stakers an opportunity to migrate and properly delegate their voting power, the target for commencing an on-chain vote for this proposal is May 1st, so make sure you've migrated and delegated by then.

**Proposal** Threshold Network’s participation in Binance Learn & Earn 2.0 campaign by allocating a minimum budget of US$ 150K worth of $T **Objective** * To educate new users for the Threshold project * To increase token awareness * To engage community engagement **Binance Learn & Earn 2.0 highlights** * Compare with Academy Learn & Earn V1, more focus on education + token awareness (In-depth article & videos) * Direct exposure to our global 40m~ weekly active users with 20+ languages supported * Wider user reach as v2.0 platform is fully integrated with[ Binance.com](https://www.binance.com/en) page * All budget will be distributed to users; Binance provides the service & platform for free. **Timeline & Budget** * First launch - mid March - early April * Min. budget - US$ 150K worth of $T **Workflow** * Project team - With Corp Dev alignment, Project team provide draft article/video to Academy * Binance -Do due-diligence check and see if any content should not mention * Binance Academy team - Digital assets & content creation - Landing page set up - Channel exposure - SEO review and proofread - Publish before confirmation from project team **Reference** Binance Learn & Earn 2.0 deck - [Binance Learn & Earn 2.0 [External].pdf](https://drive.google.com/file/d/1X8usORBCbxUJy89KDO8u6Ry0x1ONC4RS/view?usp=sharing)