2023 Cartesi Foundation Transparency Report

What is the Cartesi Foundation?

The Cartesi Foundation is a mission-bound organization that supports the Cartesi ecosystem.

The Cartesi Foundation is one of the many teams, units, companies, and individuals that advocate the ecosystem’s collective vision and contribute to the development and adoption of the Cartesi technology.

How does the Cartesi Foundation contribute to the Cartesi ecosystem?

The Cartesi Foundation is constantly adapting its support and contributions to match the needs of a growing ecosystem in the context of an ever-evolving blockchain landscape.

There are currently several ways in which the Cartesi Foundation supports and contributes to the ecosystem:

Administration

• The Foundation handles various administrative tasks in service to the community, such as hosting and securing the Cartesi website, Discord, X, governance forum, Telegram channels, Reddit, and more.
• The Foundation enters into off-chain legal relationships in support of the ecosystem.

Advice and Advocacy

• As an active resource for the ecosystem, the Foundation lends both technical and non-technical advice and recommendations to contributors.
• The Foundation fosters relationships within the Cartesi community to aid the ecosystem’s decentralized communication efforts.
• The Foundation acts as a steward of Cartesi’s evolving governance systems, supporting the existing decentralized governance frameworks and advocating for the adoption of new governance frameworks as may be proposed by the community through the ecosystem’s governance forum.
• The Foundation advocates the adoption of Cartesi technology by hosting various initiatives (such as Cartesi Experiment Week), attending industry events, and building and deepening relationships and collaborations with other projects and protocols.

Allocation

• The Foundation issues grants to the core ecosystem, research and development units, companies, and individuals as guided by the community’s technical evolution plan.
• The Foundation engages vendors at the request of core grantee units.
• The Foundation funds events such as ETHGlobal, hackathons, meetups, and educational workshops.
• The Foundation issues grants to community-run programs such as the Cartesi Community Grants Program (CGP).
• The Foundation issues grants for initiatives such as Rolluplab and Honeypot.
• The Foundation manages treasury diversification.

Amplification

• The Foundation’s marketing department works around the clock in a passionate but neutral manner to advocate the ecosystem’s accomplishments and spread the ecosystem’s collective vision.
• The Foundation’s marketing department celebrates and amplifies ecosystem progress, spotlights builders, publicizes events, runs community events, and brings visibility to what is happening in this incredible ecosystem.

Treasury Diversification and Allocation

The Cartesi Foundation holds a diversified treasury that includes the fully unlocked CTSI Foundation reserve and allocates funding and resources to the various ecosystem initiatives mentioned above. These allocations include funding grants to core units, companies, and individuals, sponsoring ETH Global events, hackathons, meetups, educational workshops, community building, community-run programs such as the CGP, and more.

The Cartesi Foundation’s yearly grant commitments to core units, core companies, and other active ecosystem contributors represent a significant portion of the anticipated allocation of the fiat portion of the treasury for years to come.

Importantly, the Cartesi Foundation’s treasury allocations are community-driven. The Foundation is committed to allocating the substantial majority of its treasury to furthering the ecosystem’s Technical Evolution Plan – a decentralized community-written roadmap. Additionally, as community-governed programs (such as the Community Grants Program) continue to mature, the Cartesi Foundation will continue to empower community partners to take an active and increasing role in determining treasury allocation.

2023 Treasury Summary

All figures below are presented as of December 31, 2023, and are subject to future change.

Runway total including all assets and assuming current yearly commitments (based on year-end CTSI price of $0.2120 USD as of December 31, 2023): 6 years and 10 months.

Runway total excluding CTSI holdings and assuming current yearly commitments: 3 years and 7 months.

The Cartesi Foundation’s treasury is comprised of the following assets:

• CTSI Holdings: 48% at year-end CTSI price ($0.2120 USD) in total, broken down as follows:
  • 26.38% in the Foundation’s wallet as of year-end (the Foundation’s CTSI wallet can be viewed at 0x60247492F1538Ed4520e61aE41ca2A8447592Ff5).
  • 21.43% deployed to generate staking rewards and/or earn interest as of year-end.
• Fiat Holdings: 43.5%
• Non-CTSI Crypto Holdings (Stablecoins/BTC/ETH): 8.5% as of year-end prices (the non-CTSI wallet is at 0xa2E3A2ca689c00F08F34b62cCC73B1477eF1f658).*

2023 Core Funding Allocation

Over 2023, core spending from the Cartesi Foundation was distributed in 4 main areas as follows:

• Core Ecosystem Unit Grants: 17%
• Core R&D Unit Grants: 35%
• Core Company Grants: 20%
• Cartesi Foundation Initiatives, Operations, and Marketing spend: 28%

*In service to the community, the Cartesi Foundation also administers two other wallets that are not a part of the foundation’s treasury:

1. DelayedWithdraw Wallet: 0xc783e5e67B646282FA1ba80878C9debBbceeE11a which holds the Mine Reserve used to fund the CTSI staking Reserve Mine Wallet. It takes 7 days to withdraw any funds from here to the Reserve Mine wallet.
2. Reserve Mine Wallet: 0x2A1Eb0FB39312BbF01Cf40899975684612A57016 which holds funds withdrawn from the DelayedWithdraw wallet. These funds are used to fund the RewardManager each month which autonomously distributes tokens in the staking system without any management or control. An intermediate wallet is used for security and safety purposes.

Note: All other on-chain activity related to CTSI is not controlled or managed by the Cartesi Foundation.