https://blog.honey.finance/q4-2022-financial-report-6f09846cb94e

Intro:

A lot of change has happened with Honey during Q4 2022 and the beginning of January 2023.

So it’s understood; as we ended the last financial report in October, this report starts with the first week of November and ends with the final week of January. The following report will encompass all of Q1 2023. Therefore, there will be an overlap as weeks 9–12 will be weeks 1–4 for the following report.

Q4 has been an amazing journey at Honey, ending with us deploying our V1 and starting the process of “Feedback Driven Development.” This is where users of Honey can have a more direct role in shaping the future of the protocol by providing insightful information. This is done through user interviews that are currently being conducted with the team. Make sure to schedule a call with Tom or myself to talk with us even more directly about your experience as a Honey user (more information in the discord)!

Overall, these past months, the team has become a lot leaner, to reduce burn and extend the runway into 2024. The last two weeks of January have been preemptive to this objective with it being our priority for February. By hitting our target weekly burn of around 10–12k, our runway is projected to last us into 2024. More to be addressed in later sections of this report.

As always please feel free to reach out to me regarding anything in this report you would like more information on.

Quarterly breakdown:

https://miro.medium.com/v2/resize:fit:1400/0*ZPm7pw-t7O0ivaGh

Weekly costs over the quarter by Niko

https://miro.medium.com/v2/resize:fit:1400/0*Q5ZyjaDbhoo-kWJd

Graph of weekly costs by Niko

As can be seen in this chart we’ve been working non-stop to reduce burn, and in turn, working to increase our output. As these weekly expenses continue to decline, we estimate to maintain the same output rate. This rate comes with the new “Feedback Driven Development,” while still lowering burn to stay between 10–12k weekly. These reductions come with improved efficiency within the comms team and an increase in contributors rather than full-time developers working for honey. Anyone interested in contributor status make sure to check our #builders channel in the discord.

This being said, we have had a couple of extraneous expenses over the quarter that was not included in our salary expenses:

Bug bounties at Honey are extremely important, as well as rewarding contributors that help advance the protocol as a whole. Should anyone want to learn more about this process please reach out to our founder Tom, or refer yourselves to our docs!

Here we see a breakdown of the quarterly expenses by department. For simplicity’s sake, as well as changes within the project, we currently have two categories: Development and Communications. As we progress we expect that the communications department will grow in share(%) as compared to the development team. We will continue to pivot in the direction of drawing users, focusing on partnerships, and marketing for the rest of the items on our roadmap(UI/UX improvements, P2P, Beekeepers, EVM).

https://miro.medium.com/v2/resize:fit:1400/0*hC13MqbCFcoXS9A9