Context

Dear TrueFi Community,

We would like to acknowledge that this proposal was previously posted but did not pass. Participation during that voting window was unusually low, and the feedback we did receive (primarily through Telegram and direct conversations) was broadly supportive. The lack of forum engagement and the timing over the holiday period likely contributed to the muted on-chain turnout. With that in mind, we are reposting this proposal with the same structure, added clarity, and a renewed commitment to open discussion on the forum.

Importantly, this is a single-quarter budget designed to maintain operational continuity while we activate the ecosystem’s product lines. By keeping the request to three months of funding, we ensure that the DAO retains flexibility and that the Foundation remains accountable to delivering measurable progress. We will return to the community in the next budget cycle with granular reporting, updated KPIs, and clear evidence of execution across Cyan, Elara, credit markets, and the revamped product stack

Over the past year, the Foundation has focused on stabilizing the TrueFi ecosystem, resolving legacy issues, and rebuilding the operational base inherited from the prior handover. When the protocol transitioned from Archblock, several technical and administrative components were incomplete or outdated. This included aging multisig structures, unavailable signers, unclear ownership of wallets, and a dependency on vendors who were no longer actively involved. These challenges slowed development and forced the team to spend time on cleanup rather than forward progress.

Despite these constraints, the Foundation has made meaningful progress. We have reduced total operating expenses by more than fifty percent, streamlined internal systems, completed a full reskin of the TrueFi front end, and implemented the Keyring KYC system that allows accredited lenders to access on-chain credit markets. For context, the Foundation’s average monthly spend in 2024, driven largely by external service providers, was over $400,000. In 2025, we reduced that figure to approximately $150,000, even after accounting for one-time legal expenses and the development of stablecoin intellectual property. This marks a decisive shift toward a leaner, more sustainable operating model. Most importantly, we have finished the internal restructuring required to move from a repair cycle into a growth cycle.

We are now ready to activate the products the ecosystem has built and begin generating visible traction. This budget proposal is designed to support the first phase of that growth. It focuses on measured, revenue positive deployment of capital across our three active product lines. Each initiative is designed to create productive, compounding capital for the protocol rather than discretionary spend or burn.

Current Status & Budget Performance Following the approval of the previous budget proposal (TFIP-28), TrueFi DAO successfully funded six months of core operational activity throughout Q3 and Q4 2025. This included governance, strategic operations, product development, legal alignment, and community engagement.

All spending during this period has been transparently tracked and reported on a quarterly basis. The most recent updates, including departmental KPI summaries and expense breakdowns, are available to the public via the DAO’s Notion dashboard: TrueFi DAO Q3 2025 Report

Despite market volatility, our contributors remained fiscally disciplined, navigating budget execution with efficiency. We prioritized critical milestones—such as onboarding new technical talent, completing the UI/UX reskin, transitioning IT infrastructure in-house, and progressing with Elara’s spin-out—while preserving capital for strategic flexibility.

As we approach the end of Q4 2025, and taking into account all forecasted expenditures for the remainder of the year, we anticipate the following treasury balance:

USDT Reserve: 49,680 USDT This remaining reserve reflects the careful management of DAO funds over the last six months and leaves us well-positioned to continue core operations into Q1 2026, pending approval of this proposal.

Budget Request for Q1 2026

Total requested budget: $489,850

1. This proposal requests three months of operating expenses to support core functions such as governance, operational costs, and community initiatives. The budget accounts for the necessary funding to maintain operational stability and strategic development, with an estimated total of $489,850 for the upcoming 3 months.

2. The proposed budget will take a ~30% earmark in TRU’s token price at the execution of the proposal before being swapped into stablecoins. This is to account for price fluctuations before the TRU-to-USDC/USDT conversion.

3. Any excess funds will be reported to the DAO at the end of the three months.

This figure includes ongoing operational costs as well as necessary back payments and strategic hires as detailed below. The budget structure remains consistent with previous frameworks to preserve clarity and predictability.

1. Cyan (NFT Lending Platform) Budget: $25,000 (Investment vehicle)

2. TrueFi Credit Vaults Budget: $100,000 (Investment vehicle)

3. Elara CDP (Capital Efficient Yield Product) Budget: $25,000 (Investment vehicle)

4. Legal Budget: $7,500

5. Finance, Treasury and Operations Budget: $40,000

6. Strategy & Operations Budget: $49,000

7. Research & Analysis Budget: $37,500

8. Product & Development Budget: $156,250

9. IT Infrastructure Budget: $15,000

10. Marketing & Community Budget: $34,600

Summary Budget Table

Cyan Investment $25,000 TrueFi Credit Vaults $100,000 Elara CDP $25,000 Legal $7,500 Finance & Operations $40,000 Strategy & Operations $49,000 Research & Analysis $37,500 Product & Development $156,250 IT Infrastructure $15,000 Marketing & Community $34,600 Total $489,850

Operational Budget in USD:

Position/Item Annual Q1 2026

Head of Product (x1) $150,000 $37,500 Head of Research (x1) $150,000 $37,500 Head of Strategy (x1) $100,000 $25,000 Full Stack Engineers (x2) $400,000 $100,000 Developers (x1) $150,000 $18,750 IT Infrastructure $45,000 $15,000 Marketer (x1) $100,000 $25,000 Directors Fees (x5) $96,000 $24,000 Community Moderator (x1) $38,400 $9,600 Legal and Compliance - $7,500 Finance & Operations $160,000 $40,000

Total Expenses $339,850

Proposal Summary

Projected Operational Cost $489,850 Reallocation from the TFIP-28 -$49,680 Budget Funding request $440,170 ~30% earmark $132,051 Total Funding request $572,221 TRU price $0,014 TRU minting request ~40,872,928 TRU

Goals Enabled by TFIP-35.1

This budget proposal is designed to support a clear transition. The past year has been about stabilizing the protocol, cleaning up inherited systems, and finishing the work needed to unlock TrueFi’s product suite. The next phase is about growth, proof points, and showing the community that TrueFi is back in motion.

Each component of the proposed budget directly supports revenue generation, as well as product development. Cyan incentives are deployed only after revenue is earned. TrueFi co-lending is productive capital that yields returns. Elara liquidity is the foundation for a CDP product that has strong demand and favorable economics. None of these expenditures leave the ecosystem. They are investments into assets the DAO owns and controls.

Our goal is to demonstrate clear progress from Q4 through April of next year. By that point, we expect to show measurable traction across Cyan, TrueFi, and Elara, supported by a lean operational base and real on-chain activity.

Currently, the team is focused on

At that stage, the community can decide whether to expand the growth plan further. For now, we believe these targeted and disciplined allocations are the right scale for a sustainable restart.

We appreciate the continued support of the community and look forward to delivering results.

Next Governance Steps

As the proposals does not fall under the simplified governance exemptions, the proposal will require the following steps:

1. Snapshot Vote: A 48-hour Snapshot vote will be conducted with the options: “OK to vote on Tally,” “Not OK to vote on Tally,” and “Abstain.” At least 5% of staked TRU must participate in this Snapshot vote to meet the quorum.

2. Amendment Period: If the 5% quorum is met, with a majority negative vote, a 72-hour period will follow to allow for any amendments or discussions before the proposal is posted to Tally.

3. Tally Vote: Otherwise, the proposal will be posted to Tally for the final vote.