Summary:

Should the TrueFi DAO pay Archblock’s invoice for services provided during 2023? The total invoice amount is $272,676.15, and Archblock has requested to be paid first in USDC to the extent funds are available in the DAO’s treasury, and any remaining amount is to be paid in TRU tokens. Paying this invoice aligns with decentralization and community-driven governance of the DAO, as it is now a separate entity from Archblock, and therefore should operate independently.

Background & Rationale:

On July 27, 2022, TrueFi Foundation Ltd. (acting on behalf of the TrueFi DAO; hereafter referred to as the “DAO”) entered into a services agreement with TrustToken, Inc. (a wholly-owned subsidiary of Archblock, Inc.; hereafter referred to as “Archblock”) whereby Archblock would provide services to the DAO on an as-needed and continuing basis in exchange for a service fee consisting of all direct and indirect costs incurred plus a 10% mark-up of such costs. Such services include advice and assistance in compliance, software engineering, design, information technology, customer support, treasury management, credit underwriting, business development, special servicing of loan agreements, and other technical, professional, or general and administrative areas of a non-integral nature.

2023 Invoice Breakdown:

• Software Engineering Services

  • Amount: $207,188.02
  • Description: Such services primarily consisted of smart contract security and verification audits paid for by Archblock on behalf of the DAO.

• Customer Support Services

  • Amount: $7,200
  • Description: Such services consisted of Archblock maintaining and paying for the TrueFi community forum on behalf of the DAO.

• Business Development Services

  • Amount: $5,500
  • Description: Such services consisted of TrueFi community manager payments Archblock facilitated on behalf of the DAO.

• Non-Integral Support:

  • Amount: $27,999.39
  • Description: Such services primarily consisted of Archblock’s payments to independent DAO council members for their role as Directors of the TrueFi Foundation and representing the DAO.

• 10% Mark-up

  • Amount: $24,788.74
  • Description: See “Background & Rationale” above for details.

• Invoice Total: $272,676.15

Other Costs Not Recharged:

In July 2023, Archblock met with representatives from LBank, a world leading cryptocurrency exchange, and negotiated listing of the TRU token for $40,000. This listing directly benefits the DAO by providing increased exposure and liquidity of the TRU token. As a show of good faith and commitment to the DAO’s success, Archblock decided to not charge the DAO for payment of this listing.