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I believe the team needs to better align token rights with token holders. Based on the information I read on DeFiLlama, it seems that the only meaningful right CLOUD token holders currently have is access to allocations from the Community Reserve. Beyond that, does the token have any actual utility or economic significance?
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Regarding revenue allocation: if Sanctum presents itself as an extremely transparent protocol, I believe the team should provide updated disclosures on how Sanctum’s revenue is being allocated, similar to what teams such as Ether.fi and Sky have done. The community should not only be shown a high P/E ratio while all protocol revenue is quietly spent without clear disclosure. Given that the team appears to be mainly based in jurisdictions such as Singapore and South Korea, I have reason to suspect that the protocol’s net income may be materially lower than its reported revenue.
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In a Blockworks report, the team stated the following:
“Submitted Response: No value is accrued to equity holders. All revenues across Sanctum products are used to grow the protocol and its range of product offerings. There are no present or future plans to return cash flow to equity through dividends or share repurchases. The team is currently exploring legal structures that ensure that any excess cash would flow into a non-profit entity instead of the Development Entity, making it structurally impossible to return cash to equity holders.”
However, nearly a year has passed since then, and there has been no meaningful update. Meanwhile, token holder rights still appear to be limited solely to the Community Reserve.
I would like the team to provide CLOUD holders with clear answers on the following:
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How protocol revenue is being used and allocated, including salary expenses, operating costs, net income, and any other major categories of spending.
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Whether the rights of CLOUD token holders are limited only to allocations from the Community Reserve, or whether there are any additional rights, utilities, or forms of value alignment.
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What progress has been made regarding the legal structure and revenue allocation framework mentioned in the Blockworks report.
What’s the real token rights?
If EeQmNqm1RcQnee8LTyx6ccVG9FnR8TezQuw2JXq2LC1T is the protocol revenue address, what is the explanation for these transfers? I noticed a wallet holding 3M USDC: 8JS6XsMPo2u3EyeeY3p2jvzHEhdUtCKgarHpJ3PAonyv. Does this represent the majority of the protocol’s current revenue?