Following some hot discussions on Platform fees and revenue streams I decided to take a look at the status of our nrGIV treasury and see if we’re going to run into some issues. 
And sure enough we might!
According to our reimbursement scheme for monthly contributors we are sending GIV to @Griff to cover the salary and operational costs of our current contributors. With the decline of the price of GIV we are burning through immense sums of GIV per month, the nrGIV treasury is set to run out of funds near imminently. 
Current Status of nrGIV Treasury
You can find the nrGIV treasury here: 
https://xdai.aragon.blossom.software/#/nrgiv/0x66bf6264c376cf635bab4294f0317161a447199e/
and more specifically all transfers in and out of the treasury in the block explorer:
The nrGIV treasury is set to claim a total of 80 Million GIV, it receives GIV progressively over the full course of the GIVstream. You can see at the link above it claims about 1.33 Million GIV monthly from the token distro (GIVstream).
As it stands with current GIV prices we’re spending about 2 - 3 Million GIV monthly in reimbursements for our day-to-day operations, including salaries and service subscriptions.
Also if we’re planning on giving out rewards from the Praise system they would probably come from this treasury as well…
What I propose
We need to decide a course and take action soon!
As I alluded my proposal would be to take out a loan from the GIVgarden to continue with our payment scheme. Something to the tune of 15 - 25 Million GIV. The GIVgarden currently holds ~80 Million GIV and will receive a total of 330 Million GIV over the course of the GIVstream.
We can take this GIV directly out of the GIVgarden treasury using a Tao(Decision) Vote. We can set a repayment schedule directly using the Finance App in the nrGIV DAO - I would propose we begin repayment 1 year from now, repaying 10% of the loaned amount monthly, concluding in 10 months with full repayment.
What are the effects?
Taking out such a hefty sum will have a significant impact on how we’re able to fund proposals in the GIVgarden. It will effectively be much harder, but not impossible to pass proposals, but perhaps that’s a better reflection of our current situation. We can also adjust our Gardens parameters if we so choose.
I also drafted some simulations on how much “runway” we could acquire from certain sizes of loans.
I assumed a few parameters:
Current GIV price: $0.03
Monthly Price Decrease: 5%
Current Monthly Expenses: ~$120,000
GIVgarden loan happens BEFORE October payment
You can see the projections below, when the “Holdings” column goes negative that essentially means we would run out of funds the previous month.
Loan 15 Million GIV
| Payment Month | Holdings | Incoming | Outgoing |
|---|---|---|---|
| September | 2558000 | 1333333 | 4000000 |
| October | 14891333 | 1333333 | 4210526.315789474 |
| November | 12014139.684210526 | 1333333 | 4432132.963988921 |
| December | 8915339.720221605 | 1333333 | 4665403.119988337 |
| January | 5583269.600233268 | 1333333 | 4910950.652619303 |
| February | 2005651.9476139648 | 1333333 | 5169421.739599266 |
| March | -1830436.7919853013 | 1333333 | 5441496.567999228 |
Loan 20 Million GIV
| Payment Month | Holdings | Incoming | Outgoing |
|---|---|---|---|
| September | 2558000 | 1333333 | 4000000 |
| October | 19891333 | 1333333 | 4210526.315789474 |
| November | 17014139.684210524 | 1333333 | 4432132.963988921 |
| December | 13915339.720221603 | 1333333 | 4665403.119988337 |
| January | 10583269.600233266 | 1333333 | 4910950.652619303 |
| February | 7005651.947613963 | 1333333 | 5169421.739599266 |
| March | 3169563.208014697 | 1333333 | 5441496.567999228 |
| April | -938600.3599845311 | 1333333 | 5727891.124209713 |
Loan 25 Million GIV
| Payment Month | Holdings | Incoming | Outgoing |
|---|---|---|---|
| September | 2558000 | 1333333 | 4000000 |
| October | 24891333 | 1333333 | 4210526.315789474 |
| November | 22014139.684210524 | 1333333 | 4432132.963988921 |
| December | 18915339.7202216 | 1333333 | 4665403.119988337 |
| January | 15583269.600233264 | 1333333 | 4910950.652619303 |
| February | 12005651.947613962 | 1333333 | 5169421.739599266 |
| March | 8169563.208014696 | 1333333 | 5441496.567999228 |
| April | 4061399.640015469 | 1333333 | 5727891.124209713 |
| May | -333158.48419424426 | 1333333 | 6029359.0781154875 |
Fork and see for yourself.
You can also fork this spreadsheet and play with the parameters or enter your own custom loan amount to make your own conclusions/proposal.
I would point out that the current reimbursement scheme is not great. We are indebted to @Griff in more than just GIV tokens and really the scheme is something symbolic but it’s important that we keep up this in some part to have some way of keeping account of what we owe to him (in tokens).
Hopefully in the future we can not only make this repayment to the GIVgarden, cover our own costs and begin buying back GIV from @Griff to repay our debt.
I’m open to other suggestions but at this point we should decide what we are going to do before we run out of GIV in the nrGIV Treasury and our reimbursement scheme comes to a screeching halt.
Recap
Borrow 15 - 25 Million GIV from the GIVgarden
Repayment starts in 1 year, pay back 10% monthly
Let’s have some signals
How much should we borrow?
- Let’s loan 15 Million GIV
- Let’s loan 20 Million GIV
- Let’s loan 25 Million GIV
- No loan, or I have a different idea/amount
- Abstain
0 voters