Q3 Update

TL;DR: The Quick Overview

After months of consolidation, ETH finally broke through the $4K level, backed by billions in institutional flows, marking a strong return of bullish sentiment to the market.

In response, Reform DAO continued its passive liquidity provision strategy, prioritizing treasury preservation while retainer-based revenue ramps up. With trading volume dialed down, the engine still executed 1.5 million trades, totaling $21M in volume. Reform aims to consistently maintain $10M+ in monthly LP volume moving forward.

Total revenue reached $127.1K, a strong increase from last quarter. However, total costs landed at $500.6K, driven by new BD hires and increased event presence, resulting in a net loss of $373.3K. No $RFRM buybacks will be executed for Q3.

The DAO treasury now stands at $850K, down from $1M, softened by the strong ETH performance during the quarter.

The mission remains clear: grow revenue, close more retainers, and reach breakeven. The target is to double revenue in Q4 while keeping costs stable.

All the Incoming $$: Revenue Breakdown

Q3 continued the Core Contributors’ passive approach, aimed at preserving the DAO Treasury while revenue streams ramp up. Rather than aggressively trading, the DAO focused on holding ETH from the $2K level up to $4K, locking in solid gains and reducing the need to provide liquidity during periods of weakness. This strategy will remain in place until the DAO reaches consistent net revenue and the treasury starts growing sustainably again.

Even with a lower trading focus, the engine still executed 1.5 million trades, generating $21M in volume. This activity brought in $2K in realized profits (used to grow the treasury) and $326 in exchange rebates, though rebates are expected to drop to near-zero next quarter as volume shifts more toward organic flow and LP strategies.

Total Q3 revenue landed at $127.1K, broken down as follows:

– $99.6K from retainer-based market making
– $16.2K from LuigiBot fees
– $10.9K from Paul’s Penthouse partnerships
– $326 from trading rebates

This marks a significant revenue increase versus last quarter. No bonding purchases were made during Q3.

Costs: Where the Money Went

The total Q3 expenses for the DAO came to $500,650.70, allocated across several strategic areas:

• $276,654.94 was allocated to white-label infrastructure and server uptime, powering Reform’s liquidity provision, market making services, LuigiBot development, and all underlying systems (built by Growity).
• $93,130.21 went to operational costs, including event travel (hotels, transport), marketing activations, and tooling for protocol operations.
• $105,646.89 was paid to freelancers via Hofida Limited, with around 75% going to BD team members driving retainer growth.
• $13,498.65 covered monthly subscriptions like Twitter Gold, Docsend, and other tools used across the DAO.
• $11,720 was paid out in referral fees for two newly signed retainer market making partnerships.

All payments were made from

DAO Treasury Wallet (0x4d2c…a03) , fully transparent and traceable onchain.

Transfers to the Kraken Cold Wallet (0x1a49…df9) are used to top up Hofida Limited’s Wise accounts, from which subscriptions and fiat-based expenses are paid.

This cost structure reflects Reform’s ongoing investment into core infrastructure, BD expansion, and token sustainability, all tracked transparently onchain.

DAO Treasury and Net Revenue

In Q3, Reform DAO recorded $127,136.74 in total revenue against $500,650.70 in expenses, resulting in a net loss of $373,513.96 for the quarter. While overall costs increased due to team growth and infrastructure scaling, revenue is trending upward, nearly doubling from Q2. The goal remains to double revenue again in Q4 and reach net profitability by year-end, assuming costs remain stable.
As the DAO remains in a non-profitable phase, no $RFRM buybacks will take place in Q4. The focus continues to be on treasury preservation and compounding revenue growth through retainers, Paul’s Penthouse, and LuigiBot fees.
The DAO Treasury currently stands at $847,930.00, down from $1,011,153.80 at the start of the quarter. However, the treasury decline was smaller than the net loss, thanks to strong ETH performance. The DAO was strategically allocated ~70% to ETH and other risk assets, many of which were sold as profit targets were hit, helping absorb operational costs.
Current Treasury Holdings:

• CEX Holdings: Reform holds $819,830.00 across Gate and MEXC, managed by Hofida Limited for both liquidity and operational use.
• HOF LP Wallet (0x7bdb…5324): No longer holds ETH — positions were moved to exchanges to consolidate portfolio visibility.
• LOA Wallet (0xde00…926e): No longer holds CBL and HELLO tokens. The CBL contract was terminated, and HELLO was moved to sidebooks on exchanges.
• Operations Wallet (0x4d2c…a03): Currently holds ~$17,000 to fund DAO subscriptions and Wise top-ups.
• Retainer Wallet (0x3cc4…342): Now serves as the primary wallet for incoming retainer revenue. It currently holds ~$10,000 in newly received income, which will be transferred to exchanges and recorded in revenue calculations.

The treasury remains healthy and diversified, but the focus for the current quarter will shift toward maintaining operational sustainability and increasing net revenue to return to a close to breakeven state.

Wrap-Up: Q2 Highlights & Q3 Plans

IQ3 was a slower quarter across the ecosystem, largely due to the holiday season, but progress didn’t stop. The new Reform website and rebrand were finalized and are set to go live very soon. On the BD side, the team scaled its efforts, attending more in-person events than ever before, as these continue to convert leads more efficiently into paying clients.
This quarter marked the first revenue from both Paul’s Penthouse and LuigiBot, signaling early traction across Reform’s ecosystem. Reform also sponsored its first side event, a success that will be repeated more frequently given the value of direct lead introductions.
Client experience improved with the launch of a new dashboard for retainer projects, with an even bigger UX update planned in Q4. In parallel, we launched a fully updated Q4 roadmap and project-focused GitBook, making it easier than ever for token teams to understand and onboard to Reform’s transparent market making services. Lastly, the DAO deployed its vault infrastructure in public beta on testnet public beta on mainnet is expected before year-end.
Q4 Outlook
Q4 is shaping up to be a big one. The long-awaited Reform brand and new website will finally go live, alongside the official launch of Paul’s Penthouse and the Reform Academy in the first month of the quarter. With these launches, the full Reform ecosystem will be operational and ready to scale.
The BD team is now aiming to close 4+ projects per month, supported by a packed schedule of events including TOKEN2049 and multiple side events, all designed to maximize exposure and conversion.
Last quarter, we introduced the rolling forecast. Based on updated KPIs and increased costs, our optimistic breakeven target is Q1 2026, with a realistic target set for Q2. This will heavily depend on new retainer deals and vault revenue. Reform remains committed to full transparency and will continue to share progress with the community.