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Introducing Financial statements for DAOs

Oskari Tempakka

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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?

***

We're really excited about this feature & happy to hear what you think!

The authors of this content, or members, affiliates, or stakeholders of Token Terminal may be participating or are invested in protocols or tokens mentioned herein. The foregoing statement acts as a disclosure of potential conflicts of interest and is not a recommendation to purchase or invest in any token or participate in any protocol. Token Terminal does not recommend any particular course of action in relation to any token or protocol. The content herein is meant purely for educational and informational purposes only, and should not be relied upon as financial, investment, legal, tax or any other professional or other advice. None of the content and information herein is presented to induce or to attempt to induce any reader or other person to buy, sell or hold any token or participate in any protocol or enter into, or offer to enter into, any agreement for or with a view to buying or selling any token or participating in any protocol. Statements made herein (including statements of opinion, if any) are wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader or any other person. Readers are strongly urged to exercise caution and have regard to their own personal needs and circumstances before making any decision to buy or sell any token or participate in any protocol. Observations and views expressed herein may be changed by Token Terminal at any time without notice. Token Terminal accepts no liability whatsoever for any losses or liabilities arising from the use of or reliance on any of this content.

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