Use of Treasury

Following the decentralization sale, the SNS will manage a treasury comprising ICP and BR23 tokens. Immediately after the sale, the SNS will have an ICP ledger account filled with proceeds from the sale, alongside a BR23 ledger account. The plan for utilizing these tokens is outlined below, with the treasury remaining at the disposal of the Bridge23 DAO to allocate funds as determined through proposals.

The Bridge DAO will present a comprehensive roadmap and budget proposal to the community biannually. This document will detail the planned activities, milestones, and the necessary resources to reach these objectives. The expected allocation of funds will be as follows:

Development 40%

• Continuous improvement of the platform.

• Integration of new features and updates.

• Security audits and enhancements.

Marketing 30%

• Partnerships and collaborations to expand the user base.

• Events and giveaways, like hackathons and bounties.

• Promotional campaigns to attract new users.

• Community engagement initiatives.

Customer Experience 10%

• Ensuring a positive experience for early adopters.

• Customer iterations and feedback loops.

• Product testing and focus groups.

Legal & Compliance 10%

• Handling intellectual property and copyright matters.

• Ensuring compliance with regulations.

• Legal consultations and services.

Liquidity Pool 5%

• Providing liquidity for BR23 trading on DEXes.

• Supporting stable trading environments.

Operational 5%

• Operational costs such as office, tools and administrative services.

• Miscellaneous expenses required for smooth operations.

Funding Development and Operations

In the future, the Bridge23 DAO will require funding for its development activities. To facilitate this, the development teams may propose to the SNS for ICP allocations to support continuous funding. For example, they might propose biannually at first, with the goal of shifting towards a quarterly reporting and funding schedule.

The Bridge23 DAO will use ICP to pay for:

• Hosting Costs: Paying for cycles to ensure continuous operation of the Bridge23 Dapp.

• Third-Party Services: Covering costs for essential services such as cloud storage, API integrations, and other SaaS products.

• Core Development Team: Funding the development team expansion, as well as paying salaries and operational costs to ensure ongoing platform improvements and maintenance.

Liquidity for BR23 Trading

After the decentralization sale, plans will be made to move a small percentage (2 to 5%) of BR23 and the equivalent ICP value from the treasury to several Automated Market Maker (AMM) liquidity pools onto decentralized exchanges (DEXes) that are operational.

This will facilitate BR23 trading and the goal is to trade on IC-based decentralized exchanges (DEXes). We plan to make BR23 slowly available on several DEXes.

For each DEX, it will be necessary to create a proposal to transfer a portion of BR23 from the SNS to the DEX and another proposal to transfer an equivalent value of ICP from the SNS to the DEX.

Burning BR23 Tokens

As the Bridge23 DAO deems fit, it can choose to burn BR23 tokens to reduce the total supply. The expectation is that over several years, the SNS will be able to afford to burn BR23 at an increasing rate until the burn rate exceeds the minting rate from voting rewards, leading to a decrease in the total supply.

By carefully managing the treasury and strategically utilizing funds, Bridge23 aims to ensure sustained growth, continuous development, and a robust ecosystem that benefits all stakeholders.