IMC Period 25/26 Reports; Period 26/27 Budgets

Governance
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And hello again, from your friendly neighborhood delinquent IMC treasurer. Catching up the rest of the way :slight_smile:

Report 25

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  • Out of reserves in Gamma’s contract, so we’re back to adding funds. Actually need to add a bit extra on the first one so we have enough buffer time to act comfortably.

Budget 26

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:star: This is a big one folks. If you’ve been paying attention to the IMC’s wallet, you’ll know it’s been dwindling. This is the period we stopped hoping for the ratio to bail us out. The strategy is pretty simple:

  • Cap how low an RPL price we’ll use for the purposes of ETH-denominated outflows. This makes our worst-case spend predictable.
  • Reduce spend given the above so that we can continue to operate, ideally indefinitely.
    • One interesting tidbit is that we opted to reduce PCS proportionally less. This is due to a mix of efficiency (from being early in the voting ecosystem, from concentration) and a routine premium (our metastable pools emphasize the peg and lose some efficiency when off peg).
  • We don’t like abrupt motion for our incentives when it’s possible to avoid, so we’ll transtion over a couple of months.

In the spreadsheet, orange items are decreased from the previous fortnight and purple is being eliminated.

Report 26

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  • Executing on the plan
  • RPL ratio cap is in effect as ratio is below 0.005

Budget 27

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  • We continue to implement our budgeting plan.
  • This budget still uses 973 RPL more than is covered by inflows. Based on reserves and unclaimed rewards, we could operate through period 31 assuming RPL ratio stays at/below 0.005; we would need to make a little more cuts or ask for more funding to hit indefinite operation.

Data - 1% price impact

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The highlighted region is periods 25-26. There is minimal impact from the additional belt-tightening we did.

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