Sovryn Treasury Update - April 2023

Dear Sovryn Community,

The Exchequer is presenting the financial reports for the Sovryn Treasury for the full financial year of 2022 and the first quarter of 2023. In addition, the Exchequer is proposing a new budget for community review. The report can be viewed via this link, and includes the following information:

  1. 2022 Financial Year Results
  2. 2023 Q1 Financial Results
  3. Treasury Balances
  4. Budget Objectives and Assumptions
  5. New Budget Proposal

The full report is expected to be presented during the next community call. Please add any questions, comments or suggestions you may have to this thread and they will be addressed here and on the call. Once community review is concluded, the Exchequer intends on raising a SIP to approve the new budget proposal (pending any changes that may arise due to community input).

Thanks and Stay Sovryn.


First of all, thank you very much for presenting the accounts. Even though they are not audited, it is evident that there has been an effort to show them in the best possible way. The comparative information between Q4 2021 and Q3 2022 helps to dimension the events.

I would like to have a more detailed breakdown by concepts, as far as possible, within the expense concepts related to Adoption, Development, Operations, and Overhead. Both in the 2022 accounts and in the projections for 2023.

I would also like more detailed information on the concepts of Trade Receivables and Accrued Expenses.

I notice that there has been no Income so far, was it zero in 2022? I believe it is overly prudent to ignore income in 2023.

Regarding the variation of Assets from Q4 2022 to Q1 2023, the decrease in the amount of BTC and BNB, and the increase in the amount of SOV caught my attention. Could you explain the causes of these variations?

Stay Sovryn.

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To what degree have personnel adjustments reflected in this proposed budget already been made?

What is the rationale for reducing personnel (and therefore production) to extend the runway? Is there a reason to believe that Sovryn will be in a better position with a longer runway but slower progress?

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The personnel adjustments reflect the current state, and leave some margin for additional personnel compensation.

As to the second question, I’m not sure what you are referring to - what personnel changes are you referring to that reduce production? I do not think we have had or anticipate an adverse impact on development.

Thanks for the clarification.

I’m just speaking to the general idea that if you have 40 worker units available and a task that requires 15 months, 30 worker units will take 20 months to accomplish the same task. I understand that there are optimizations in personnel and process that can affect this formula.

I wasn’t thinking about specific personnel changes when I asked the question. But I know the adoption team is slower than it was before the most recent reduction. And one of our biggest tasks right now is to grow adoption of DLLR.

Thanks for your questions. What kind of detail are you looking for? Is is a delineation between headcount expenses vs. non headcount. Perhaps a valuable distinction that we can make is funds expended on grants for contributors versus other expenses (for which we can give additional detail). We are apprehensive of providing any further detail regarding grants for contributors in order to not dox them or their info. We could potentially add a report about headcount, which would provide more color on these grant expenses.

Trade Receivables relates solely to payments that the Exchequer made on behalf of the BabelFish protocol and Accrued Expenses relates to payments owed to service companies that provide certain services for the protocol.

The decrease in BNB is due to the fact that the Exchequer no longer provided liquidity for the BNB pool and the increase in SOV is solely due to the Watcher activity that is run by Exchequer (to manage system liquidations). As part of this activity, SOV is accrued. A separate SOV report will provided soon.


Thank you very much for your answers.

I don’t want to ask for confidential information, neither the number of employees. Sovryn is Sovryn, and must maintain certain confidentiality.

Anyway, any further detail that can be received helps transparency. So adding the information you refer to would be very valuable (funds expended on grants for contributors versus other expenses, and the SOV report).

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