Introducing Financial statements for DAOs

A new era in fundamentals-based cryptoasset investing has begun.

Key takeaways:

1. What? Real-time financial statements for DAOs.
2. Why? The unique property of blockchains is that business data is made accessible in near real-time.
3. So what? Investors have access to extremely detailed information about the financial performance of a DAO, and now in a TradFi-friendly format!

Source: https://tokenterminal.com/terminal/financial-statements

How to read the Financial statements:

1. GMV (project-specific metric)

• Trading volume / Transaction volume / Active loans / Assets staked / AUM / Capital deployed: How much capital has been put to work?

2. Income statement

• Fees: How much fees has the GMV generated in total?
• Supply-side fees: What % of Fees have been paid to liquidity or service providers?
• Revenue: What % of Fees have been captured by the DAO?
• Token incentives: How much (in tokens) has the DAO paid to acquire users?
• Earnings: How much of the Revenue is left after subtracting the Token incentives?

3. Treasury

• Treasury: What are the retained Earnings of the DAO & value of unallocated governance tokens?

4. Market data

• Price: What’s the price of the DAO’s governance token?
• Fully diluted market cap: What’s the DAO’s market cap, when considering the max. supply of tokens?
• Circulating market cap: What’s the DAO’s market cap, when considering the freely tradable supply of tokens?
• Token trading volume: What’s the trading volume of the DAO’s governance token?
• Tokenholders: How many unique owners does the DAO have?

5. Valuation multiples

• P/F ratio (fully diluted / circulating): How is the DAO valued in relation to annualized fees?
• P/S ratio (fully diluted / circulating): How is the DAO valued in relation to annualized revenue?

6. Alternative KPIs

• Daily active users: How many unique addresses have interacted with the DAO’s business-relevant contracts?
• Active developers: How many unique GitHub users have made 1+ commits to the DAO's public GitHub repositories within the prior 30-day period?
• Code commits: What’s the total number of commits to the DAO’s public GitHub repositories?

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