[Discussion] Treasury Reporting Standards & MET Treasury Framework

General
1

Summary

Formalize treasury reporting standards and establish governance guidelines surrounding treasury-held MET.

Background

Over the past year, Metronome has significantly improved transparency across protocol operations.

Community members can currently track protocol revenue, incentive spend, and buybacks through DefiLlama dashboard, while treasury assets and allocations are publicly visible through Octav and DeBank. In addition, monthly reports provide recurring updates regarding protocol performance and development.

While these tools provide substantial visibility into protocol operations, there is currently no formal framework describing treasury classifications or the intended use of treasury-held MET.

Abstract

This proposal formalizes DefiLlama and Octav/DeBank as the primary sources of protocol reporting and treasury transparency.

Metronome should continue monthly reporting and maintain documentation describing the purpose of major treasury wallets and treasury categories where applicable.

The proposal also establishes governance guidance regarding treasury-held MET.

Treasury-Held MET

The Metronome treasury currently holds a substantial portion of the MET supply. At this time, there are no plans to circulate treasury-held MET besides MET incentives stated in MIP-33.

Treasury-held MET should be viewed as a strategic reserve asset and should remain non-circulating unless its deployment serves a clear purpose that benefits the protocol. Acceptable uses of treasury-held MET may include:

  • Liquidity programs and market development initiatives, where MET substitutes USDC spend and only under the condition that MET trades at a surplus to its treasury backing. For example, this could include directing some MET toward liquidity incentives on selected markets where doing so is more capital efficient than spending stablecoins.

  • Strategic investments, treasury swaps, OTC agreements, and ecosystem partnerships.

  • Emergency backstopping of protocol operations during catastrophic events.

  • Temporary treasury operations, including cross-chain liquidity management, where an equivalent amount of MET is expected to return to treasury reserves over time.

Specification

  • Formalize DefiLlama and Octav/DeBank as primary treasury reporting tools.

  • Continue monthly reporting and treasury updates.

  • Maintain documentation regarding treasury wallet classifications and treasury purpose.

  • Establish governance guidance regarding acceptable uses of treasury-held MET.

  • Recognize treasury-held MET as a strategic reserve asset that should remain non-circulating absent a clear protocol benefit.