> ## Documentation Index
> Fetch the complete documentation index at: https://docs.askloyal.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Q4 2025 Transparency Report
> Loyal Public Transparency Report covering October 21 – December 31, 2025
**Period:** Oct 21, 2025 → Dec 31, 2025\
**Currency:** USDC\
**Accounting view:** Cash basis (expenses recognized when paid)
## What Happened This Quarter
During the Oct 21–Dec 31 reporting period, Loyal achieved several key milestones:
* **Fundraise:** Raised via MetaDAO on Oct 21 with **2,500,000 USDC net received** (team accounting figure)
* **Shipped:**
* [askloyal.com](https://askloyal.com) — private LLM with agentic skills
* Loyal Telegram app — private AI for Telegram (summaries, spam filtering, etc.)
* **Team buildout:** Hired a developer, UX/UI designer, two Discord moderators, and a community lead
* **Governance executed:** Two MetaDAO proposals passed during the period
## Organizational Status
| Item | Status |
| ------------------ | ---------------------------------------------------------------------------------------------------- |
| **Scope** | Consolidated reporting for Loyal (no separate "company ops" vs "DAO ops" separation at this stage) |
| **Incorporation** | In progress in the Marshall Islands (documents submitted, KYC passed; awaiting certificate issuance) |
| **Legal provider** | MiDAO |
## Expense Details
**Total operating expenses paid (Oct 21–Dec 31): 131,803.94 USDC**
This operating expense summary excludes governance-directed capital actions (e.g., buybacks and liquidity changes), which are disclosed separately and are inherently dynamic.
### Monthly Breakdown
| Category | Oct 21–31 | Nov | Dec | Total |
| -------------- | ------------- | ------------- | ------------- | -------------- |
| Salaries | 20,759.00 | 36,300.00 | 30,931.00 | 87,990.00 |
| Marketing | 355.07 | 6,309.64 | 14,694.61 | 21,359.32 |
| Legal | 5,000.00 | 1,848.00 | 2,800.00 | 9,648.00 |
| Administrative | 0.00 | 4,776.75 | 1,100.00 | 5,876.75 |
| Travel | 0.00 | 1,495.60 | 2,583.30 | 4,078.90 |
| Software | 248.00 | 346.12 | 2,256.85 | 2,850.97 |
| **Total** | **26,362.07** | **51,076.11** | **54,365.76** | **131,803.94** |
## Statement of Operations
### Spending Analysis
* **Salaries (66.76%)** represent the majority of spending, consistent with a post-raise build phase (engineering, design, and community operations)
* **Marketing (16.21%)** increased materially in December relative to October/November, indicating intensified distribution and/or launch preparation activities
* **Legal (7.32%)** reflects ongoing structuring and legal work during incorporation and operational setup
* **Administrative + Software (6.62% combined)** remain comparatively low as a share of total spend, indicating a lean tooling/overhead posture during this initial period
### Income Statement
| Line Item | Amount (USDC) | % of Operating Expenses |
| ---------------------------- | ---------------- | ----------------------- |
| **Revenue** | 0.00 | — |
| **Total revenue** | 0.00 | — |
| **Operating expenses** | | |
| Salaries (including R\&D) | 87,990.00 | 66.76% |
| Marketing | 21,359.32 | 16.21% |
| Legal | 9,648.00 | 7.32% |
| Administrative | 5,876.75 | 4.46% |
| Travel | 4,078.90 | 3.09% |
| Software | 2,850.97 | 2.16% |
| **Total operating expenses** | **131,803.94** | 100.00% |
| **Operating income (loss)** | (131,803.94) | — |
| Other income (expenses) | 0.00 | — |
| **Net income (loss)** | **(131,803.94)** | — |
## Balance Sheet
**Snapshot date:** Jan 13, 2026 (outside the Oct 21–Dec 31 reporting window)
### Published Addresses
| Wallet | Address |
| --------------- | ---------------------------------------------- |
| Squads treasury | `AQyyTwCKemeeMu8ZPZFxrXMbVwAYTSbBhi1w4PBrhvYE` |
| Meteora LP | `BGg7WsK98rhqtTp2uSKMa2yETqgwShFAjyf1RmYqCF7n` |
| Operating | `92yGiPxBVG3E6voo1XyaKXaBR4Uvd7cntMsj3pL1fAYa` |
| LOYAL mint / CA | `LYLikzBQtpa9ZgVrJsqYGQpR3cC1WMJrBHaXGrQmeta` |
| Futarchy AMM LP | `GxpJkPEsPmuRCCTNnfZaDKg4X3gf4ZPgmqgFqtibaPtK` |
### USDC Assets
| Asset | Amount (USDC) |
| ------------------------- | ------------- |
| USDC — Squads treasury | 320,000 |
| USDC — operating wallet | 31,091 |
| USDC — in Futarchy AMM LP | 486,558 |
| **Total USDC assets** | **837,649** |
### Token Balances
| Asset | Amount (LOYAL) |
| ------------------------------ | -------------- |
| LOYAL — held in treasury | 5,833,214 |
| LOYAL — in Futarchy AMM LP | 5,833,214 |
| LOYAL — in Meteora LP position | 2,055,257 |
| **Total LOYAL units** | **7,978,525** |
## Governance Actions
Loyal's treasury is governed through MetaDAO proposals and executed transparently on-chain. In the early stage, treasury strategy has two parallel objectives:
1. Fund product development and operations
2. Manage market structure responsibly via governance-approved actions
During this period, the community authorized a structured buyback program (recurring buys with a maximum price) and approved a liquidity adjustment intended to reduce unnecessary selling pressure from a single-sided liquidity position by withdrawing and burning tokens while retaining withdrawn USDC in the treasury.
**Status:** Passed
The community approved a structured, time-distributed LOYAL buyback program, designed to buy tokens using treasury funds with a defined maximum price.
**Key terms:**
* **Allocation:** \$1.5M of treasury funds
* **Asset:** LOYAL token
* **Max price:** 0.238 per LOYAL
* **Mechanism:** Recurring orders every 5 minutes over 30 days (8,640 orders)
**Status:** Passed
The community approved a liquidity action intended to reduce unnecessary selling pressure from a single-sided liquidity position.
**Key terms:**
* **Action:** Withdraw 90% of tokens remaining in the single-sided Meteora DAMM v2 pool and burn half of this amount
* **USDC:** Withdrawn USDC remains in the project treasury
* **Pool address:** `BGg7WsK98rhqtTp2uSKMa2yETqgwShFAjyf1RmYqCF7n`
* **Referenced amount:** 809,995 LOYAL