Syscoin Ecosystem Sustainability & Liability Reduction Proposal

Project Name: Syscoin Ecosystem Sustainability Budget
Project Managers: Syscoin Management Team & Syscoin Foundation
Request Amount: 4,350,000 SYS per month
Duration: Six Months
Total Maximum Request: 26,100,000 SYS
Voting Deadline: 19th August 2026

Voting

Vote Yes

gobject_vote_many 9c675dfc0bd5d7b08dbdd8300e918d1f9c50b0c6804ede8336c41d010e5248a2 funding yes

Vote No

gobject_vote_many 9c675dfc0bd5d7b08dbdd8300e918d1f9c50b0c6804ede8336c41d010e5248a2 funding no

Overview

This proposal requests 4,350,000 SYS per month for six months as a combined Syscoin Management Team and Syscoin Foundation budget.

The purpose of this proposal is straightforward:

Keep Syscoin’s essential infrastructure operational, meet existing ecosystem commitments, and begin systematically reducing the liabilities that have accumulated from individuals personally funding Syscoin when ecosystem resources were insufficient.

This is not simply a request for additional spending.

A substantial part of Syscoin’s current financial position consists of existing obligations that have already been funded on behalf of the ecosystem. Team members and contributors have provided their own SYS and stablecoins to maintain infrastructure, support liquidity and market-making requirements, and prevent disruption to Syscoin operations.

That approach allowed Syscoin to continue operating through difficult market conditions, but it is not sustainable indefinitely.

This proposal begins the process of bringing those obligations back into a transparent governance-funded structure.


What This Proposal Funds

Governance funds will follow a clear priority order:

1. Essential Infrastructure & Operating Costs

Maintain the servers, cloud infrastructure, RPC services, hosting, development platforms and operational tools required to keep Syscoin services online.

2. Existing Market-Making & Liquidity Commitments

Continue meeting agreed repayments associated with assets loaned to support Syscoin’s exchange liquidity and market-making operations.

3. Reduction of Existing Ecosystem Liabilities

After the above obligations are met, remaining governance funds will be directed toward reducing historical amounts personally advanced on behalf of Syscoin.

The intention is that governance funding is applied according to this order each month rather than creating additional discretionary expenditure.


Current Infrastructure Costs

Following significant reductions in expenditure, Syscoin’s current direct infrastructure and operational hard costs are approximately:

$4,969 USD per month

These costs are publicly tracked at:

https://syscoin-infra-support.vercel.app/

Servers & Infrastructure

Service Purpose Monthly Cost
Hetzner Main server hosting $2,700
AWS Cloud services, storage & bandwidth $1,300
Pinata IPFS pinning & gateway access $120
DigitalOcean Cloud resources $33
MongoDB Database hosting $10
Subtotal $4,163

Operational Tools & Subscriptions

Service Purpose Monthly Cost
G-Suite Email & workspace $20
X Subscription Social platform subscription $200
OpenAI AI tooling $100
Vercel Site hosting & deployments $180
Monday.com Project management $85
Discord Boosts Community infrastructure $80
Adobe Suite Design tools $80
ChainStack Blockchain infrastructure $49
GitHub Development & code hosting $12
Subtotal $806

Current Hard-Cost Total

$4,969 USD / month

A rounded $5,000 monthly target is used operationally to provide a small allowance for fees and normal fluctuations in bills.

This represents a significantly leaner operating footprint than previous Syscoin ecosystem budgets.


Market-Making & Liquidity Obligations

Maintaining viable exchange liquidity has required contributors to make assets available for Syscoin market-making activities.

These are not grants to contributors. They are funds that were loaned for the benefit of the Syscoin ecosystem and carry existing repayment commitments.

Current repayments associated with these arrangements are approximately:

670,000 SYS per month

or:

4,020,000 SYS over six months

Meeting these commitments is important both financially and reputationally.

Where individuals provide capital for ecosystem requirements, Syscoin must demonstrate that those commitments are respected.

Accordingly, these repayments will remain a priority allocation under this proposal.


Existing Ecosystem Liabilities

Beyond the recurring market-making commitments, substantial amounts of SYS and USD-denominated assets have historically been provided personally to support the ecosystem.

As of this proposal, the outstanding balances are:

Creditor SYS Liability USD Liability
Chris 8,103,106.84 SYS $76,049.89
Jag 4,943,674.31 SYS $161,523.97
Kmino - $10,643.00
TOTAL 13,046,781.15 SYS $248,216.86

These liabilities represent previously advanced funds, not a new six-month spending budget.

That distinction is important.

The ecosystem has already received the benefit of these funds. They were used to support Syscoin at times when sufficient funding was otherwise unavailable.

The objective now is to progressively reduce those liabilities.


Existing ecosystem liabilities

All remaining available governance funding will be applied toward reducing outstanding historical liabilities.


How Debt Repayment Will Work

The purpose of the debt-repayment allocation is not to favour any individual creditor.

It is to reduce legitimate ecosystem liabilities in a transparent and orderly manner.

Outstanding liabilities will be tracked and reported publicly.

Where repayments are made, reporting will identify:

  • The opening liability
  • Amount repaid during the month
  • Whether repayment was made in SYS, stablecoins or another agreed asset
  • The conversion basis used where applicable
  • The remaining balance

Where practical, repayments across equivalent liabilities may be made proportionally against outstanding balances.

This provides the community with a clear audit trail and prevents ambiguity around how surplus governance funding is being used.


Why 4.35 Million SYS?

Previous governance proposals were designed to support a considerably broader operational structure.

The February 2026 Syscoin Ecosystem Budget Proposal, for example, requested 3,500,000 SYS per month while supporting infrastructure, technical contributors, developers, marketing, business development, general operations and other ecosystem activities.

The financial position today is different.

Significant operating costs have been reduced and the current direct infrastructure footprint has been brought down to approximately $5,000 per month.

However, reducing expenditure does not remove liabilities that were already incurred.

The proposed 4,350,000 SYS monthly allocation therefore serves two purposes:

Fund what Syscoin needs today.

and

Begin paying for what Syscoin has already used in the past.

This allows the ecosystem to operate on a leaner forward-looking cost structure while simultaneously repairing its balance sheet.


OTC & Community Support

The existing Syscoin Infrastructure Support initiative will continue to provide an additional avenue for community members who wish to support ecosystem expenses directly.

Community members may contribute in SYS, USDT or USDC.

Where parties wish to acquire SYS OTC, governance SYS may also be sold OTC where appropriate, with proceeds applied toward infrastructure expenses and outstanding ecosystem liabilities.

Any such activity will be included in financial reporting.

This provides the ecosystem with an opportunity to meet USD-denominated expenses without unnecessary market selling while simultaneously reducing liabilities.


Six-Month Objectives

By the conclusion of this proposal period, our objectives are to:

  • Maintain uninterrupted critical Syscoin infrastructure
  • Continue meeting existing market-making commitments
  • Avoid adding new personal loans wherever possible
  • Materially reduce existing ecosystem liabilities
  • Maintain a clear public record of repayments
  • Continue reducing unnecessary recurring expenditure
  • Improve the overall financial sustainability of the ecosystem
  • Reduce Syscoin’s reliance on individual contributors personally financing operations

The ultimate goal is not simply to fund another six months.

It is to put Syscoin in a stronger financial position at the end of those six months than it is today.


Conclusion

This proposal requests community support for a combined SMT and Syscoin Foundation budget of 4,350,000 SYS per month for six months.

The allocation is designed around three clear priorities:

  1. Keep critical Syscoin infrastructure running.

  2. Honour existing liquidity and market-making commitments.

  3. Use the remaining funding to reduce existing ecosystem liabilities.

The total governance request over six months is a maximum of 26,100,000 SYS.

Importantly, much of this should not be viewed as new expenditure.

It represents the transition of expenses and liabilities that have previously been personally carried by contributors back into a transparent, governance-funded structure.

The ecosystem has benefited from those funds already.

The objective now is to keep Syscoin operating, honour those commitments, reduce its liabilities and establish a more sustainable financial foundation going forward.

We ask the Syscoin community to support this proposal.