Regarding ThorFi Buybacks

Q4 and beyond will bring many changes to ThorFi as a protocol. Particularly important to us is positioning ourselves for success in 2023 and beyond. Currently, our runway is sitting at roughly $4 million, but there are large developments that need funding in 2023 that the community will learn about as we advance through our roadmap. Our Operations wallet is healthy as of now, but we would like to maintain our runway just to ensure that during a tumultuous market we are able to persevere.

A few factors to note;

• Bifrost update v2.2 effectively decreased our emissions, allowing our reward pool to maintain at a much healthier level than prior to the update, requiring fewer fees to keep the pools and prices healthy.

• AVAX crashing affects Thor’s price heavily, which means that we are utilizing extra funds just to stabilize the price when the entire market is red. Utilizing buybacks for more opportune market lows will increase the impact these funds have.

At the beginning of the quarter, we allocated 100% of node fees towards buybacks. With the communities blessing, we would like to reduce this amount from 100% to <100%. Given the above-mentioned items, we can maintain the health of the protocol with less than 100% of the node fee allocation. The remainder would go towards our Operations wallet, to ensure we have the necessary funds to secure lengthy dev work. Buybacks benefit both ThorFi and the community, as they increase the price of $THOR, subsequently increasing maintenance fees, resulting in more funds in the maintenance wallet. OTC will continue to be monitored and swept and we will still buy back both strategically and as often as necessary to ensure the health of ThorFi, this would just allow us to secure any surplus.

The good news is - our operations wallet is healthy, and we will honor the communities wishes regardless of the outcome. Thank you for sticking with us through this less-than-ideal market.

To give further transparency to the numbers behind a decision like this we wanted to give a tangible breakdown:

At .50 cents, we would bring in a total of $493,780/ month.

From now until the end of December we're looking to make: $740,671 at a .50-cent price

The money we're looking to clear for the runway:

$300-$400k - green standing $200k-$300k - yellow standing $100k-$200k - red standing

NOTE: color indications do not indicate the health of the protocol, just used for categorizing

We will save based on the market volatility, if PA is healthy & AVAX is increasing we will save more for the protocol, if not we will account more for buybacks to stabilize