I believe that none of us could have ever imagined what Ragnarok has become, and I will be the first to admit that I did not expect to be quickly operating a rapidly growing startup. If I am being honest, running Ragnarok has made me aware of many personal skill gaps, and it is one of the reasons I am prioritizing expanding our team and bringing on domain experts to help lead us into the next phase of growth. Ultimately, I own our mistakes as the leader of Ragnarok, and I apologize to the community for the missteps and lack of communication thus far. I cannot promise that we won’t make mistakes going forward - we are all human, but I can promise stronger transparency and that we will always act in good faith for our community and this project.
As a previous business owner, and because Ragnarok is a startup and not a DAO, our initial plan was never to operate our finances in public, which is why we have historically been closed and unwilling to share full accounting of our balance sheet.As we continue to learn from community feedback and the guidance of our advisors, we understand that the community, our stronger supporters, also need transparency and trust that this project is well run.
I want to first own and apolopize for the trading losses. We exchanged the ETH from the mint originally to 15.5m USDC. As it turns out, this was a good move in treasury management. As ETH price went down, I made mistakes by buying ETH multiple times when I thought it was an advantageous investment for the project, but then to protect downside risk and with the plan to reinvest at a better time, I sold our position in ETH, multiple times.. This led to approximately 1.827M in losses.
My intention was to diversify our treasury assets and set Ragnarok up for success. In hindsight, this was poorly executed and incurred losses that need not have happened. I am proud that we were able to avoid the sharp downturn in the crypto markets with the vast majority of our treasury, saving approximately 9M in the process. As a team, we will implement better treasury management processes as they relate to asset investments.
Transparency on Revenue and Expenses
Investment and Revenue
~ 1.75M from investors in the seed round
~ 15.5M from primary sale of the NFTs
~ 2M in Royalties from OpenSea
~1.827M lost due to trading, slippage and fees (repaid fully)
~1.9M so far paid to ThreeSigma for blockchain development + audit (big things incoming)
~1.3M compensation for core team members post-mint
~1.25M salaries for core team members in total since 9 months ago (56 people)
~2.45M compensation for founding members post-mint
~1.5M co-founder buyout
~400k salaries for founding members in total since 12 months ago (2 people)
~423k sweeps for Ronin
In January, the Ragnarok leadership bought out an ex-cofounder who did not see eye to eye on the future of the project. He owned 7% of the tokens like me, and Ragnarok bought him out for 1.5M. We made the mistake of not putting a vesting schedule in place for his token allocation, and this was our only option to fully separate him from the project.
Repaying trading losses
~1.2M + 163.8ETH by Fanfaron
~250K by Krimbo
~200K No future compensation by Fanfaron
I will be compensating the Ragnarok treasury for all trading losses. I already reduced my NFT compensation in the past by 600K, now returning 600K from NFT sale compensation, and will not take compensation for the next 4 months (approximately 200K). I have also previously given the project 168.3 ETH that was part of a private transaction from the ex-cofounder.
Krimbo, one of the first team members on the project, also wants to help and will return 250K of his compensation. He is my co-founder in my previous non crypto venture and in this project also has been as close to being a co-founder in the early days of the project as one can get. He’s also been an active member of the team on Discord. He has no token allocation, so this is truly an incredible gesture by him and we are thankful to have him as part of the team. Krimbo will switch into an advisory role in september.
As we evolve from an idea sparked by a handful of individuals into a full fledged business, we will also grow our standards for operational excellence and communication. I’ve underestimated the optics of having such a complex structure of wallets and payments.
I am aware now this can paint a bad picture if we don’t provide any transparency or context. Especially with payments going for myself going to different wallets multiple times and for example me and and Krimbo pooling money from our bonus to a combined wallet for another project of his (that is now on ice).There are a lot of transactions between wallets with Krimbo and my ex co-founder especially, as I deal with them every day in real life. We’ve used the same services, had shared wallets, and so on. Every transaction can be clearly accounted for though and we’ve provided investors with all necessary information.
Our team has spent the last few days reviewing all wallets and transactions, and will provide as much detail as possible below. The following addresses are additional treasury addresses:
0x3D6572a17AbF6629185d718F25Fa346BC5F9F273 (was originally planned for my bonus)
0x754AB9caa7FCE90707b78C3bC4B29EE71f4E9B15 (used for bonus distribution)
0x33715b1df2e66439E6b42E3477D6aE8d276CA8Bb (just got used to transfer funds)
0x0DBEFb060A8139E51D345209eE641DCA6C9dcC46 (just got used to transfer funds)
And to be as transparent as possible, I can tell you which wallets that transacted with the treasury are mine and/or Krimbos:
0xF9cb7FDc8936b8d61A5b4854be301e1dB447d4B3 - (700k of my bonus)
0x342BDCeD4747dd15A04677D9e5E815A728d647f0 - (300k of my bonus)
0x37AF9eD4D8fD4AB8D980cC37319D468cd54a932D - (Pooled bonus between Krimbo and me)
0x90845986bF393AF38Ec2551E5b34B859287A477D (salary pre-mint)
0x121BDFa0A7f87C4eAD088924Ee42E15287042488 (post mint salary Krimbo & me)
0x673d86888568De5033BF9E8144CfC5Daa1CeF377 (post mint salary Krimbo & me)
0x6b9747694d3AA5a01d3f509C22dd139BdFc4B3a9 (post mint salary Krimbo & me)
0xC4C34cc8A6Dd61d69Ec421623D003a62df387373 (Krimbo bonus)
The investors and I have had lengthy conversations regarding my leadership of the project, and they have given their full trust and support for me to continue as CEO.
We will be implementing a Board of Advisors consisting of me, one member of Ragnarok Leadership, two investors,, and one neutral party. This Board will advise me and Ragnarok Leadership on strategy, financial planning, fundraising, business growth, and to protect our funds through a multi-sig.
Additionally, we will clean up the wallet structure and will start to move funds to new multisigs and bank accounts.
Fundamentally, we are not a public company, nor are we a DAO, and we are not going to act like either one of those in terms of the information we’re making public. We’re a scrappy startup trying to build a kick-ass metaverse that our community of users can have fun in. What we will do is continue to provide the community with regular updates and be transparent and forward about answering questions that the community has. We will also be implementing a monthly business review call where we will address project, team, and business updates as well as take questions from listeners.
Today, the project has just over $10 million in funds in the treasury, which we will continue to use for development, tax and legal costs.
The Ragnarok team is hard at work developing the best game experience we can for the community. Here are the next steps for our roadmap of the next 6-7 months :
Step 1 : Game Arcade
Step 2 : Hoverboard Universe Phase 1
Step 3 : Yokai Universe Phase 1
Step 4 : Improving Voice and Party capabilities
Step 5 : Release of [Redacted] with Three Sigma
Step 6 : Darknet Alpha, Yokai Phase 2, Hoverboard Phase 2 and [Redacted] on chain
And here are some teasers of things we’ve been working on