About This Template
For Web3 companies that have launched or are planning to launch a token, the treasury function is fundamentally different from a conventional technology company. The treasury does not consist solely of cash and short-term investments — it may include the protocol's own native token, stablecoins, other cryptocurrencies, and DeFi positions, each with different risk profiles, accounting treatments, and liquidity characteristics. Managing a token treasury well is one of the most consequential finance decisions a Web3 founding team makes, and one of the areas where poor execution creates the most lasting damage — to the protocol's runway, to its tokenomics, and to its relationship with its community.
This template provides the financial infrastructure for managing a token treasury from TGE (Token Generation Event) through the first two to three years of post-launch operation. It covers four interconnected areas: the token allocation and vesting schedule that determines who holds what and when they can sell; the treasury dashboard that tracks the current composition and value of all assets held; the monthly sell-down log that records when and why the treasury sold tokens or other assets; and the accounting treatment reference that helps finance teams and auditors determine how each asset class should be recognised under IFRS or UK GAAP.
What's Included
- Instructions sheet — Overview of token treasury management and financial reporting considerations, including the key decisions around accounting policy for digital assets
- Token Allocation & Vesting sheet — Standard distribution table with pre-populated allocation categories (Team 15%, Investors 20%, Community 30%, Ecosystem 15%, Public Sale 10%, Reserve 10%), with columns for total tokens, percentage of supply, TGE unlock percentage, cliff months, vesting duration, vesting type (Linear/Cliff/Custom), and notes. Summary rows auto-check that allocations sum to 100% and calculate circulating supply at TGE
- Treasury Dashboard sheet — Asset-by-asset inventory covering fiat and stablecoins (GBP, USDC, USDT), native tokens, and other crypto positions, with columns for quantity, current price, GBP value, percentage of treasury, last valued date, and custody method. Summary rows show total treasury value and concentration by asset type
- Monthly Sell-Down Log sheet — 12-month rolling log of all token or crypto sales from the treasury, with columns for month, token sold, quantity, average sale price, total proceeds, percentage of holdings sold, reason for sale (Operations/Runway/Strategic), cumulative sold percentage, and remaining treasury value
- Accounting Treatment sheet — Reference table covering IFRS treatment for Native Utility Token, Investment Token, Stablecoin, NFT, DeFi LP Position, and Mining Income, with columns for IFRS standard (IAS 38/IFRS 9), initial recognition, subsequent measurement, impairment requirement, and disclosure requirement
How to Use This Template
- Populate the Token Allocation & Vesting sheet at or before TGE. Enter the total token supply and allocate it across the categories. Adjust the default percentages to match your actual tokenomics — the sum-to-100% check cell will flag any discrepancy. For each category, set the TGE unlock percentage (what vests immediately at TGE), the cliff period in months (the period before any additional vesting begins), the vesting duration (total months from TGE over which the allocation vests), and the vesting type. The circulating supply at TGE row calculates automatically from the TGE unlock percentages.
- Update the Treasury Dashboard at least monthly. For each asset row, enter the current quantity held, the current price in GBP (use a reliable market data source), and the custody method. The GBP value and percentage of treasury calculate automatically from the quantity and price. The Last Valued Date column is important for audit purposes — assets that have not been valued recently should be flagged and revalued. Review the risk concentration summary: if any single asset represents more than 50% of the treasury, the concentration section will highlight this for board attention.
- Make an accounting policy decision before your first set of accounts. Review the Accounting Treatment sheet with your auditor before your first financial year end. The accounting treatment for your native utility token is the most consequential decision — typically classified as an intangible asset under IAS 38 at cost, but the IAS 38 model requires mandatory impairment testing when carrying value exceeds fair value, and prohibits upward revaluation unless the IAS 38 revaluation model is applied and an active market exists. The treatment you select has significant implications for your P&L and balance sheet presentation.
- Log every treasury transaction in the Sell-Down Log. Each time the treasury sells tokens or other crypto assets to fund operations, raise runway, or execute a strategic transaction, log it in the Sell-Down Log immediately. Include the reason for the sale — this is important for community transparency and for any future regulatory or audit review. The cumulative sold percentage column tracks total disposals as a proportion of original holdings, which is a key metric for assessing sell pressure and treasury sustainability.
- Review treasury concentration quarterly. The Treasury Dashboard summary should be reviewed by the board at least quarterly. Key questions: Is the proportion of native token holdings declining appropriately relative to stablecoin and fiat holdings? Does the treasury have sufficient fiat and stablecoin liquidity to fund at least 18–24 months of operating costs even if the native token price falls by 80%? Has the diversification policy been followed? Are custody arrangements (exchange vs hardware vs multisig vs custodian) appropriate for the value being held?
Frequently Asked Questions
How should we value tokens on our balance sheet?
The valuation approach depends on the accounting standard you apply and the accounting policy your auditor agrees to. Under IFRS, native utility tokens are most commonly classified as intangible assets under IAS 38 and carried at cost less accumulated impairment losses. This means you record them at the cost at which they were acquired (or nil if they were created by the protocol itself), and you must impair them down when the carrying value exceeds recoverable amount — but you cannot reverse an impairment or write them up when the price recovers. Some tokens may qualify for classification as financial assets under IFRS 9, which would allow fair value measurement through P&L, but this classification has specific criteria and implications. The key point is that you should make a deliberate, documented accounting policy choice before your first year end, not after. Changing the policy retrospectively is significantly more complex and creates complications with comparatives.
Can we use our crypto treasury for operational cash management?
Yes, but with important caveats. A well-managed Web3 treasury will hold a portion of its assets in liquid, low-volatility instruments — stablecoins (USDC, USDT, or equivalents) and fiat currency — specifically to fund operational costs. The general guideline is that the stablecoin and fiat portion of the treasury should be sufficient to cover at least 18–24 months of operating expenses, calculated at the current burn rate. This means that even if the native token price falls by 80–90%, the protocol can continue operating without needing to liquidate native tokens into a falling market. Using native tokens to pay operating costs directly is possible but creates sell pressure, tax events on every disposal, and potential issues with how payments are received by counterparties. The cleaner approach is to maintain a separate operational account in fiat, replenished from the treasury via structured sell-down with board oversight.
How do we account for token grants to employees?
Token grants to employees — where employees receive protocol tokens as part of their compensation, subject to vesting — are typically accounted for under IFRS 2 (Share-based Payment). The key questions are whether the grant is equity-settled (the employee receives actual tokens) or cash-settled (the employee receives a cash payment linked to the token value), and whether there is a service or performance condition attached. For an equity-settled grant with a vesting period, the fair value of the tokens at the grant date is recognised as an employee expense over the vesting period, with a corresponding credit to equity. The grant date fair value is fixed — subsequent movements in the token price do not change the expense recognised. If the tokens have a cliff and linear vesting schedule, the expense accrues on a straight-line basis from grant date over the vesting period. This treatment requires a fair value determination at grant date, which for tokens with an active market is straightforward. For pre-TGE grants, fair value may need to be determined using a valuation technique, typically the most recent token sale price or a comparable transaction.
What disclosures do we need to make about our token treasury in the financial statements?
Disclosures will vary depending on the materiality of digital asset holdings relative to total assets and the accounting standards applied, but common required disclosures include: the accounting policy for each class of digital asset (including the classification rationale and measurement basis), the carrying value and fair value of each material class of digital asset, the impairment methodology and any impairment losses recognised in the period, significant judgements made in determining the accounting classification, and any restrictions on the sale or transfer of digital assets. If digital assets are material, the notes should also explain the custody arrangements and associated security measures, as these are increasingly considered part of the internal controls disclosure. Your auditor will be guided by the relevant IFRS standards and any applicable ICAEW or FRC guidance on crypto asset accounting, which has been developing rapidly.
