Context
Dear TrueFi Community,
Over the past year, the Foundation has focused on stabilizing the TrueFi ecosystem, resolving legacy issues, and rebuilding the operational base inherited from the prior handover. When the protocol transitioned from Archblock, several technical and administrative components were incomplete or outdated. This included aging multisig structures, unavailable signers, unclear ownership of wallets, and a dependency on vendors who were no longer actively involved. These challenges slowed development and forced the team to spend time on cleanup rather than forward progress.
Despite these constraints, the Foundation has made meaningful progress. We have reduced total operating expenses by more than fifty percent, streamlined internal systems, completed a full reskin of the TrueFi front end, and implemented the Keyring KYC system that allows accredited lenders to access on-chain credit markets. For context, the Foundation’s average monthly spend in 2024, driven largely by external service providers, was over $400,000. In 2025, we reduced that figure to approximately $150,000, even after accounting for one-time legal expenses and the development of stablecoin intellectual property. This marks a decisive shift toward a leaner, more sustainable operating model. Most importantly, we have finished the internal restructuring required to move from a repair cycle into a growth cycle.
We are now ready to activate the products the ecosystem has built and begin generating visible traction. This budget proposal is designed to support the first phase of that growth. It focuses on measured, revenue positive deployment of capital across our three active product lines. Each initiative is designed to create productive, compounding capital for the protocol rather than discretionary spend or burn.
Current Status & Budget Performance
Following the approval of the previous budget proposal (TFIP-28), TrueFi DAO successfully funded six months of core operational activity throughout Q3 and Q4 2025. This included governance, strategic operations, product development, legal alignment, and community engagement.
All spending during this period has been transparently tracked and reported on a quarterly basis. The most recent updates, including departmental KPI summaries and expense breakdowns, are available to the public via the DAO’s Notion dashboard:
Despite market volatility, our contributors remained fiscally disciplined, navigating budget execution with efficiency. We prioritized critical milestones—such as onboarding new technical talent, completing the UI/UX reskin, transitioning IT infrastructure in-house, and progressing with Elara’s spin-out—while preserving capital for strategic flexibility.
As we approach the end of Q4 2025, and taking into account all forecasted expenditures for the remainder of the year, we anticipate the following treasury balance:
- USDT Reserve: 49,680 USDT
This remaining reserve reflects the careful management of DAO funds over the last six months and leaves us well-positioned to continue core operations into Q1 2026, pending approval of this proposal.
Budget Request for Q1 2026
Total requested budget: $489,850
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This proposal requests three months of operating expenses to support core functions such as governance, operational costs, and community initiatives. The budget accounts for the necessary funding to maintain operational stability and strategic development, with an estimated total of $489,850 for the upcoming 3 months.
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The proposed budget will take a ~30% earmark in TRU’s token price at the execution of the proposal before being swapped into stablecoins. This is to account for price fluctuations before the TRU-to-USDC/USDT conversion.
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Any excess funds will be reported to the DAO at the end of the three months.
This figure includes ongoing operational costs as well as necessary back payments and strategic hires as detailed below. The budget structure remains consistent with previous frameworks to preserve clarity and predictability.
1. Cyan (NFT Lending Platform)
Budget: $25,000 (Investment vehicle)
Cyan is live today and already generating revenue. The product is strongly positioned within the NFT financing vertical and has seen organic usage with no external spend. The next step is to elevate Cyan’s visibility. We plan to run a targeted marketing campaign in partnership with key NFT communities, focused on driving borrow and lend activity with positive unit economics. For example, a user who finances a Pudgy Penguin through Cyan may receive a small amount of PENGU tokens only after initiating a loan. In all cases, the protocol earns revenue first and distributes incentives second. This ensures the marketing spend is net positive and directly tied to Cyan adoption.
2. TrueFi Credit Vaults
Budget: $100,000 (Investment vehicle)
The TrueFi reskin and Keyring KYC integration are complete. This positions us to relaunch institutional lending activity on the platform. To rebuild trust with external lenders, the Foundation proposes to deposit a modest amount of capital into select vaults and co-lend alongside institutional borrowers. This creates alignment, increases confidence in loan execution, and accelerates the return of lending volume. The yield earned flows back to the Foundation, making this a productive capital allocation rather than a cost.
3. Elara CDP (Capital Efficient Yield Product)
Budget: $25,000 (Investment vehicle)
The original Elara concept was a compliant Treasury-backed stablecoin. While the product was built and the IP remains fully owned by the DAO, the broader market environment made this design impractical without significant venture funding. Multiple projects in the same category faced similar challenges. Given this reality, we have pivoted Elara to a CDP model that supports capital-efficient sUSDe looping. This variant is much more aligned with current market demand and can generate meaningful returns with a modest liquidity base.
The CDP architecture is nearly complete. To support launch and testing, the Foundation requests a budget allocation that allows us to seed initial liquidity. This is not marketing spend or discretionary spend. It is productive capital that generates yield and contributes to the beginning of a permanent capital base for TrueFi owned liquidity.
4. Legal
Budget: $7,500
Objectives:
- Implement necessary legal modifications to TrueFi Foundation Ltd.
5. Finance, Treasury and Operations
Budget: $40,000
Includes:
- CFO (x1): $40,000
Objectives:
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Maintain core finance operations, including DAO-level bookkeeping, centralized payments, and monthly cost control reviews.
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Coordinate with legal team to assess how regulatory changes could impact fiscal procedures.
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Manage day-to-day operations, including onboarding and offboarding procedures, and oversee IT infrastructure at the operational level
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Support all other departments
KPIs:
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Zero late payments; Quarterly reporting published via DAO Report
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Quarterly financial report to community
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Monthly financial report to board
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Internal DAO guide created for future treasury strategy iterations.
6. Strategy & Operations
Budget: $49,000
Includes:
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Board Members (x4): $24,000
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Head of Strategy (x1): $25,000
Objectives:
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Sustain day-to-day operations management and enhance governance and contributor coordination.
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Provide governance oversight, strategic planning, and operational coordination.
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Execute strategic roadmap, aligning product, legal, and finance streams.
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Manage day-to-day operational continuity and reporting cadence.
KPIs:
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Governance cadence maintained (forum, Snapshot, Tally).
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Strategic input documented for each major initiative (legal, dev, finance).
7. Research & Analysis
Budget: $37,500
Includes:
- Head of Research (x1): $37,500
Objectives:
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Provide foundational market and competitive research.
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Support financial and treasury strategy with analysis and benchmarks.
8. Product & Development
Budget: $156,250
Includes:
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Head of Product (x1): $37,500
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Full-Stack Engineers (x2): $100,000
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Developer (x1): $18,750
9. IT Infrastructure
Budget: $15,000
Objectives:
- Fully internalized IT infrastructure (e.g., GitHub, Gitbook, Cloudflare, INFURA, Heroku).
10. Marketing & Community
Budget: $34,600
Includes:
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Marketer (x1): $25,000
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Community Moderator (x1): $9,600
Objectives:
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Amplify TrueFi and Elara and Cyan presence in web3 media, through long-form content, podcast appearances, and ecosystem collaborations.
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Drive forward community-led initiatives that increase ecosystem stickiness and TRU retention.
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Optimize budget allocation for industry events, targeting ROI-positive opportunities only.
KPIs:
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One thought leadership piece published each month.
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Two high-quality speaking engagements secured by year-end.
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Quarterly DAO report Town hall call
Summary Budget Table
| Cost Center | Q1 2026 |
|---|---|
| Cyan Investment | $25,000 |
| TrueFi Credit Vaults | $100,000 |
| Elara CDP | $25,000 |
| Legal | $7,500 |
| Finance & Operations | $40,000 |
| Strategy & Operations | $49,000 |
| Research & Analysis | $37,500 |
| Product & Development | $156,250 |
| IT Infrastructure | $15,000 |
| Marketing & Community | $34,600 |
| Total | $489,850 |
Operational Budget in USD:
| Position/Item | Annual | Q1 2026 |
|---|---|---|
| Head of Product (x1) | $150,000 | $37,500 |
| Head of Research (x1) | $150,000 | $37,500 |
| Head of Strategy (x1) | $100,000 | $25,000 |
| Full Stack Engineers (x2) | $400,000 | $100,000 |
| Developers (x1) | $150,000 | $18,750 |
| IT Infrastructure | $45,000 | $15,000 |
| Marketer (x1) | $100,000 | $25,000 |
| Directors Fees (x5) | $96,000 | $24,000 |
| Community Moderator (x1) | $38,400 | $9,600 |
| Legal and Compliance | - | $7,500 |
| Finance & Operations | $160,000 | $40,000 |
| Total Expenses | $339,850 |
Proposal Summary
| Details | Q1 2026 |
|---|---|
| Projected Operational Cost | $489,850 |
| Reallocation from the TFIP-28 | -$49,680 |
| Budget Funding request | $440,170 |
| ~30% earmark | $132,051 |
| Total Funding request | $572,221 |
| TRU price | $0,014 |
| TRU minting request | ~40,872,928 TRU |
Goals Enabled by TFIP-35
This budget proposal is designed to support a clear transition. The past year has been about stabilizing the protocol, cleaning up inherited systems, and finishing the work needed to unlock TrueFi’s product suite. The next phase is about growth, proof points, and showing the community that TrueFi is back in motion.
Each component of the proposed budget directly supports revenue generation. Cyan incentives are deployed only after revenue is earned. TrueFi co-lending is productive capital that yields returns. Elara liquidity is the foundation for a CDP product that has strong demand and favorable economics. None of these expenditures leave the ecosystem. They are investments into assets the DAO owns and controls.
Our goal is to demonstrate clear progress from Q4 through April of next year. By that point, we expect to show measurable traction across Cyan, TrueFi, and Elara, supported by a lean operational base and real on-chain activity. At that stage, the community can decide whether to expand the growth plan further. For now, we believe these targeted and disciplined allocations are the right scale for a sustainable restart.
We appreciate the continued support of the community and look forward to delivering results.
Next Governance Steps
As the proposals does not fall under the simplified governance exemptions, the proposal will require the following steps:
1. Forum Posting: A 72-hour posting period on the forum to allow the community to provide feedback.
2. Snapshot Vote: A 48-hour Snapshot vote will be conducted with the options: “OK to vote on Tally,” “Not OK to vote on Tally,” and “Abstain.” At least 5% of staked TRU must participate in this Snapshot vote to meet the quorum.
3. Amendment Period: If the 5% quorum is met, with a majority negative vote, a 72-hour period will follow to allow for any amendments or discussions before the proposal is posted to Tally.
4. Tally Vote: Otherwise, the proposal will be posted to Tally for the final vote.