Avocado DAO: June 2022 Treasury Report
Welcome back Avocadians! It’s been a year since Avocado DAO was formed in July of 2021, and we’re excited to bring you our second Treasury report. As always, our aim is to engage with our community, provide transparency on our financial performance, and progress made on our roadmap. We suggest that this report be read in conjunction with our latest updates on our Medium page, as well as our last roadmap update.
Scholarship Program and Operations
We have seen continued growth in community engagement as reflected in our Discord membership, which is now at an incredible 85k (up 31% Q-on-Q). Despite the continued market downturn, it is wonderful to see our community engaging in so many ways, whether that be as scholars, students or socially, enjoying the company of like minded GameFi enthusiasts. Within that community, we make a special call out to our scholars who continue to be our raison d’etre.
During Q2, we successfully launched the AVG token bridge to the BNB chain as well as our staking program, where we had our second round of staking fully subscribed. As at the time of writing, 5 million tokens representing ~20% of the 25.4M circulating supply have been staked with only modest inflation relative to what we see from other projects. We have also released our scholarship portal and management dashboard. In Q3, we look forward to onboarding additional games to our program as we transition more games currently in beta testing, to active scholarship programs.
We use the term “Treasury” to encompass all assets of the DAO and all income generated by those assets. When we make investments, share scholar earnings, or realize gains on sales of assets, it all takes place in the DAO Treasury. As of the 30th of June 2022, our Treasury stands at ~$26m USD. At Avocado we continue to take a conservative approach when valuing our Balance Sheet, with consideration of the amount of liquidity available for a given asset (token or NFT) which informs what value could realistically be achieved on sale.
FIAT + Stable coins + L1 Coins + Treasury Investments
We continue to maintain a strong liquid asset portfolio, consisting of on-call bank deposits, USD denominated stablecoins, unencumbered L1 coins, and liquid treasury investments. Through Q2, we have made significantly less investments in web3.0 projects as fewer attractive projects have entered our pipeline. This corresponds to the modest decline in our StableCoin balance as we invested across 8 different games during Q2. Refer to our web3.0 Investments section for further details.
Game Tokens and NFTs
The Treasury holds Game Tokens to support the operational needs of our active scholarship programs. Balances can fluctuate as we periodically sell down our in-game earnings to ETH or StableCoin or reinvest to support breeding.
The Treasury also holds NFTs to support our scholarship programs. We hold NFTs in both characters and land, in support of our existing yield-farming activities, as well as for future projects currently in development. Our largest character NFTs are in Axie Infinity, CyBall, Wasted Lands, and Karmaverse. We also hold significant land positions amongst various games through a combination of direct purchases and early-stage stage investments, of which we expect to see positive valuations when those investments eventually vest and games go live.
Web 3.0 Investments
Our portfolio of active investments now stands at 49 investments which include games, platforms and protocols. Many of these investments were initiated in Q1 2022, with 8 of these added during Q2 at a cumulative spend for Q2 of only $1M. We have been fortunate to have been involved in the developmental journey of our investment partners, and the growth of the web3.0 gaming. We remain committed to engaging with all current and future investment partners through the swings of the market so that we can generate value wherever it may be found.
Joining our portfolio of launched products, we welcomed League of Kingdoms into our guild operations, as well as new partnerships with games such as D.G.Pals, Tatsugotchi, and Apeiron in Q2. We also launched partnerships with various GameFi platforms such as Ludena Protocol. We believe our web3.0 investments hold significant upside potential, considering our attractive entry prices into these investments.
Avocado is fortunate to be in a position where it has an established brand, significant balance sheet strength, and the proven ability to innovate. In an environment where less funded and less capable projects will fall away, we expect Avocado to be well positioned to take advantage of opportunities as they arise.
About Avocado DAO
Avocado DAO is a Web3 gaming guild that provides rewarding experiences for its scholars and facilitates entry to GameFi to empower more users.
Unlock life-changing opportunities with Avocado DAO Tokens (AVG):
AVG can be found on Ethereum and BNB, the contract address is the same for both chains.
Smart Contact address: 0xa41f142b6eb2b164f8164cae0716892ce02f311f