Treasury Usage

As previously mentioned in the docs, a portion of the profit generated by the protocol goes into a treasury multisig wallet. But what will this money be used for?

In short:

  1. Paying the team

  2. Operating costs to run the protocol

  3. Funding new pools, lending etc and other integrations

  4. Community grants and research

  5. Anything else that benefits the protocol and the community

The problem Malt faces with compensation

Malt has launched in the fairest way we could think of - no VC raise, no governance token etc. While we believe this is the best way to go for the success of the protocol it does make our lives harder when it comes to attracting the best talent and keeping them.

Most companies offer equity options packages on top of a base salary to compensate hires and incentivize them over the long term. Crypto projects use governance token allocation in lieu of stock options. Malt has no equity or governance tokens to give out.

So we are faced with a problem to solve - how do we attract the best talent?

Part of the answer is we simply need to pay them a higher base salary. But this isn't enough on its own. It also doesn't incentivize long term loyalty like options do so something else is needed.

We do not know what the answer is to this question yet and will be opening up this discussion with the community to get us all on the same page and figure out what the community feels is fair.

Operating costs

This is fairly self explanatory. It is things like deployment costs, cost of tools the team uses, cost of on-chain oracles and keepers, gas for other upkeep etc. All standard operations stuff.

Funding new pools etc

There may be points in the future where we want to deploy a pool on a lending platform that needs some seed capital for example. We will use the treasury to fund these things. This extends out to everything that may need liquidity to get itself started. Of course, in many instances this doesn't deplete the treasury at all and just changes the treasury allocation. In many cases this would also earn the treasury additional income.

Community grants and research

Malt plans on progressively decentralizing over time. Part of this will be encouraging community teams to do work that enhances the ecosystem. We would love to be able to fund these teams to create amazing things.

Research is another thing we are passionate about. We are so early on the story arc of crypto and there are so many amazing problems that haven't been solved yet. Having dedicated teams actively working on some of these problems with no worry about how to make their idea profitable yet would be incredible. This is a long way away but we are setting it as a goal!

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